Tax Calculator for India to Compare the tax regime that suits you 2024 – 25

India’s income tax system is always a point of interest for taxpayers, and every year, with the announcement of the Union Budget, many eagerly await changes to income tax slabs. For FY 2024-25, there have been some significant updates in the tax structure that could benefit individual taxpayers. Here’s an overview of the revised income tax slabs and what they mean for you.

 The New Income Tax Slabs for FY 2024-25 (Under the New Regime)

• Finance Minister Nirmala Sitharaman introduced new amendments aimed at simplifying the tax structure and providing relief to taxpayers. Under the new regime, which was first introduced in FY 2020-21, there are no deductions or exemptions (like HRA, 80C, etc.), but the tax rates are lower.

Here are the revised tax slabs for individuals and Hindu Undivided Families (HUFs):

Income Range (INR)	Tax Rate
Up to 3 lakh	Nil
3,00,001 to 6,00,000	5%
6,00,001 to 9,00,000	10%
9,00,001 to 12,00,000	15%
12,00,001 to 15,00,000	20%
Above 15,00,000	30%

• This revised tax structure eliminates the surcharge for those earning less than Rs. 15 lakh, making it more attractive for the average taxpayer.

New Income Tax Slabs Under the Old Regime

• The old tax regime still exists for those who wish to claim exemptions and deductions under sections like 80C, 80D, HRA, and others. However, it continues with the same basic tax structure as before:

Income Range (INR	Tax Rate
Up to 2.5 lakh	Nil
2,50,001 to 5,00,000	5%
5,00,001 to 10,00,000	20%
Above 10,00,000	30%

• A notable change here is the extension of the tax rebate under section 87A, which is now available for taxpayers earning up to Rs 7 lakh per annum. This means that taxpayers in this bracket will not have to pay any income tax.

નવા ઇન્કમટેકસ કેલક્યુલેટર માટે અહિં કલીક કરો

Key Changes in Tax Deductions and Benefits

• Tax Rebate Under Section 87A: For those opting for the new tax regime, the tax rebate limit has been increased to Rs 7 lakh, which means individuals earning up to Rs 7 lakh per year can enjoy a full rebate and end up with zero tax liability.
• No Changes to Tax Rates for Senior Citizens: The tax slabs for senior citizens remain the same as in previous years, which is important for individuals aged 60 or above.
• Exemptions: The new regime removes various exemptions (like HRA, standard deduction, etc.), but the old regime still allows for the flexibility of claiming these exemptions and deductions. Taxpayers can choose the regime that benefits them more.

Which Tax Regime Should You Choose?

The choice between the new tax regime and the old regime depends largely on your individual financial situation:

• If you don’t have many exemptions and deductions to claim, the new tax regime might work out better, especially since the tax slabs are lower and the rebate under section 87A makes it attractive for lower-income earners.
• If you have significant exemptions and deductions to claim (such as investments under section 80C, housing loan interest under section 24, etc.), the old tax regime could provide more savings.
• For example, an individual earning Rs 12 lakh per annum with significant tax-saving investments might still benefit more from the old tax regime. On the other hand, someone with no deductions and an income of Rs 5 lakh may prefer the new regime for its simplicity.

Impact on Salaried Individuals

• The new tax slabs bring substantial relief to middle-income earners, especially those earning up to Rs 6 lakh, who will no longer need to pay any tax. This is a great move for salaried individuals as they will see a more simplified and transparent tax calculation process.

If a taxpayer provides incorrect information in the income tax return form, the Income Tax Department can send him a notice under various laws. There are two types of verification process of ITR - manual and mandatory. Mistakes can be avoided by keeping some things in mind.

Not filing ITR-

• The Income Tax Department sometimes sends notices to taxpayers for not filing ITR. If you fall in the tax slab, then filing ITR is mandatory. Suppose you are an Indian citizen, but you are the owner of foreign assets. Even in this situation, you have to file ITR. Otherwise, the Income Tax Department can send you a notice.

Error in TDS-

• While filing ITR, you should fill TDS carefully. If there is a difference between TDS filed and where it is deposited, then you may get a notice from the Income Tax Department. Therefore, before filing ITR, know how much TDS has been deducted.

Undeclared Income

• You have to tell in ITR how much you earn in the financial year. Along with it, you have to provide investment information. In such a situation, if you hide income from investment, you may get a notice. To avoid a notice, ask for an interest statement from your bank and put it in the ITR. Apart from this, also provide information about income received from any other source.

High value transaction-

• If you do any high value transaction, which is usually different from your normal transaction, then a notice from the Income Tax Department may also come. Suppose your annual income is six lakh rupees. But in a year, 15 lakh rupees are deposited in your account. In such a situation, the Income Tax Department may investigate it, and your source may be asked.

 

ઇન્કમટેક્સ કેલ્ક્યુલેટર માટે અહીંયા ક્લિક કરો 

 Conclusion

• The introduction of the new income tax slabs is a progressive move by the government to ease the tax burden for lower and middle-income taxpayers. While the new regime might benefit many, it’s important to carefully evaluate your finances and consider whether the old regime offers more advantages in terms of exemptions and deductions.
• Ultimately, the choice of the tax regime will depend on individual financial circumstances, and the government has provided ample flexibility to allow taxpayers to choose the one that suits them best.
• As always, it’s advisable to consult a financial advisor or tax professional to understand which option works best for you, and make sure you’re making the most of available tax-saving opportunities.