The Income Tax Department has provided a solution to help taxpayers decide between using the old tax regime or opting for the new tax regime by launching a tax calculator
Step 1:
Visit the official website of the Income Tax Department incometaxindia.gov.in and click on the highlighted link that reads - ‘Tax Calculator - Old Regime vis-à-vis New Regime as proposed by Finance Bill, 2023’
Step 2:
You need to provide personal details such as type of taxpayers (individual, HUF, etc) and residential status (resident, NRI, etc)
Step 3:
You need to enter your gross salary (after deducting allowances exempted under both regimes such as tour and conveyance allowance)
Step 4:
Give details of exemptions which are not allowed in the new regime such as HRA under section 10 (13A); also provide if you have income other than salary.
Step 5:
If you have taken a home loan put details of interest paid on the home loan on Self Occupied House Property to avail deduction under old regime
Step 6:
Give details of other deductions allowed under both regimes such as deduction to individuals enrolled in Agnipath Scheme u/s 80CCH(2), 10% of salary to the employer's payments to the NPS u/s 80CCD(2), family pension deduction under section 57(iia), 80JJA, etc.
Step 7:
Enter deductions/exemptions not eligible in the new tax regime such as 80C, health insurance u/s 80D.
Step 8:
The tax calculator will show you tax calculations under both regimes and what option works for you.