Income Tax Calculation for FY 2023-24 [Examples]

Income Tax Calculation for FY 2023-24 can be easily done by using the income tax calculator, and we will see what is the income tax on Old and New Tax regimes for FY 2023-24. Old vs New Tax Regime Which is better for you? You’ll know in this post.

Based on Income Tax Calculation 2023-24, even when your income is Rs. 11 Lakh, you pay zero income tax by using various deductions in old tax regime. And if you want to opt for new tax regime, for income up to Rs. 7.5 Lakh, you don’t have to pay any income tax. Standard Deduction of Rs. 50,000 is available for old tax regime and new tax regime in FY 2023-24.

We’ll see these income tax calculation examples in this article.

Table of Contents

Income Tax Calculation between 4 Lakh to 20 Lakh
Income Tax Calculation for FY 2023-24 Video
Income Tax Slab Rates 2023-24
- Old Tax Regime Slab Rates
- New Tax Regime Slab Rates
Income Tax Calculation Examples
Income Tax Calculation formula in Excel
- Download Income Tax Calculator 2023-24 in Excel [FREE]
How to Calculate your Income Tax
Old vs New Tax Regime Which is Better?
Income Tax on Rs. 5 Lakh Income
Income Tax on Rs. 10 Lakh Income
Zero Income Tax using Tax Rebate under Section 87A
Conclusion
Frequently asked questions

Income Tax Calculation between 4 Lakh to 20 Lakh

Here we have considered Rs. 2 lakh as investments / deductions in old regime for below calculations. You can consider more deductions based on your investments.

For new regime, standard deduction of Rs. 50,000 is applied.

Income Tax Calculation FY 2023-24 Examples

Income Tax Calculation for FY 2023-24 Video

Watch more Videos on YouTube Channel

So as seen in above video, we checked income tax on various incomes between 4 lakh to 20 lakh in FY 2023-24 with 2 lakh deduction with old tax regime. We can also make more investments and claim deductions under old tax regime to save more income tax.

ALSO READ: Tax Saving Options with Old Tax Regime

Income Tax Slab Rates 2023-24

Let us now see the income tax slab rates for FY 2023-24 for old and new tax regimes.

Old Tax Regime Slab Rates

Income	Tax Slab Rates (Old Tax Regime)
Rs. 0 – Rs. 2.5 Lakh	0%
Rs. 2.5 Lakh – Rs. 5 Lakh	5%
Rs. 5 Lakh – Rs. 10 Lakh	20%
Rs. 10 Lakh or above	30%

Income Tax Slab Rates in India for age up to 60 years (Old Tax Regime)

New Tax Regime Slab Rates

Income	Tax Slab Rates (New Tax Regime)
Rs. 0 – Rs. 3 Lakh	0%
Rs. 3 Lakh – Rs. 6 Lakh	5%
Rs. 6 Lakh – Rs. 9 Lakh	10%
Rs. 9 Lakh – Rs. 12 Lakh	15%
Rs. 12 Lakh – Rs. 15 Lakh	20%
Rs. 15 Lakh or above	30%

Income Tax Slab Rates in India for age up to 60 years (New Tax Regime)

Above are the Income tax slab rates for FY 2023-24 for age up to 60 years. Note that on income of 7.5 lakh, you belong to 20% slab rate with old regime but 10% slab rate with new regime.

New tax regime have reduced tax slab rates but do not allow much deductions except standard deduction to salaried and pensioners only.

ALSO READ: Income Tax Slab Rates for all age groups

Let us now see the income tax calculation examples.

Income Tax Calculation Examples

You can easily use the online Income Tax Calculator or the Income tax excel calculator to calculate income tax.

Let’s take few examples for tax calculation purpose:

Income = Rs. 8 Lakh
Deductions = Rs. 50,000 (Standard Deducton)
Old Regime = Rs. 65,000
New Regime = Rs. 31,200
Below is the income tax calculation with excel

Income Tax Calculation 2023-24 on 8 Lakh

As seen above, with only Rs. 50,000 deductions and 8 lakh income, it is better to select new tax regime as you’ll pay less tax compared to old tax regime.

Also it is important to note that tax rebate under Section 87A has limit of Rs. 5 lakh income with old regime and Rs. 7 lakh income with new regime. Which means you pay zero income tax when taxable income is Rs. 5 lakh or below with old regime and when taxable income is Rs. 7 lakh or below with new tax regime.

Now how do you get the income below these levels? By making investments and claiming deductions under various sections.

Let’s say in above example we make more investments of:

Rs. 1,50,000 in Section 80C
Rs. 50,000 in Section 80CCD(1B) – NPS
Standard Deduction of Rs. 50,000
Rs. 50,000 in Section 80D – Medical Insurance premiums
Total deductions – Rs. 3,00,000

When we mention these deductions in excel, below is the calculation:

Income Tax Calculation 2023-24 on 8 Lakh and 3 lakh deductions

So as seen, we pay zero income tax with old tax regime now due to tax rebate under section 87A, Note that tax with new tax regime is not changed since these deductions are not available in new tax regime, except standard deduction of Rs. 50,000

Income Tax Calculation formula in Excel

The formula for income tax calculation in excel is quite simple and based on the tax slab rates, we can provide the formula for old and new tax regime. Below are the steps to follow:

For 5% slab rate, check if the income is between 2.5 lakh to 5 lakh
If yes than on income between 2.5 lakh to your actual income, multiple the difference by 5 and divide by 100
Similarly, same formula need to be applied for new tax regime
Now for 20% in old regime, check the difference of income between actual income and 5 lakh
Multiply this difference by 20 and divide by 100
In the same way, apply formula in various tax slab rates of old and new regime

Download Income Tax Calculator 2023-24 in Excel [FREE]

You can also fill below form to download income tax calculator in excel:

How to Calculate your Income Tax

So there are 2 ways to calculate your income tax:

Using online income tax calculator

Below is the screenshot of using the online income tax calculator:

You only need to provide income and investments/ deductions to calculate your income tax for FY 2023-24 and upcoming financial years.

Using Income Tax Excel calculator:

Another way is to use the income tax excel calculator that will help you to know the tax details with various slab rates. You can use this excel calculator offline as well and choose between old and new tax regimes.

Old vs New Tax Regime Which is Better?

It depends on your income and investments you are planning to make.

If you don’t want to make any investments and claim deductions than new tax regime is better since you’ll pay less income tax with reduced tax slab rates
Where as if you can make investments up to Rs. 6 lakh, than even when income is Rs. 11 Lakh, you pay zero income tax with old tax regime, in which case, old regime is better for you
Not only 11 lakh but income beyond this level with old tax regime will help you to save income tax

Use the calculators above to know your income tax with old and new tax regimes and plan accordingly.

Income Tax on Rs. 5 Lakh Income

For FY 2023-24, on income of Rs. 5 Lakh and below you’ll get Tax Rebate 87A, according to which you don’t have to pay any tax with old tax regime if your taxable income is up to Rs. 5 lakh and with new tax regime the taxable income limit is Rs. 7 lakh to pay Zero income tax.

So if your income is above rs. 5 lakh, you should make use of various tax saving options to get your taxable income below Rs. 5 lakh and pay Zero income tax.

Income Tax on Rs. 10 Lakh Income

If only standard deduction is considered of Rs. 50,000, your taxable income with old and new tax regime will be Rs. 9.5 lakh.

And on Rs. 9.5 Lakh, your income tax is as follows with both tax regimes:

Old Tax Regime: Rs. 1,06,600
New Tax Regime: Rs. 54,600

So based on above numbers, it’s better you choose old tax regime as you’ll be paying less income tax without making any investments.

But let’s say you invest in Section 80C with limit of Rs. 1,50,000, HRA of Rs. 1,00,000 and in Section 80CCD(1B) belonging to NPS (National Pension System) with limit of Rs. 50,000, than your income tax with old tax regime will be Rs. 44200.

In this case old tax regime would be a better option to choose and pay less income tax.

Zero Income Tax using Tax Rebate under Section 87A

Watch below video to understand zero income tax using tax rebate under section 87A with calculations:

Conclusion

So income tax calculation FY 2023-24 can be done very easily using the online calculator or the excel calculator. Both these calculators are free to use (you can donate though!)

With income of 11 lakh and deductions of 6 lakh, your taxable income will be 5 lakh on which you pay zero income tax with old tax regime with the help of tax rebate under section 87A.

Comment below which tax regime you choose for FY 2023-24.

Some more Reading

Frequently asked questions

How much tax do I pay on 7.5 lakhs?

With 7.5 lakh income in FY 2023-24, your income tax with old tax regime will be Rs. 54,600 and with new tax regime will be Rs. 0. Since you get standard deduction of Rs. 50,000 with new regime so taxable income become 7 lakh and than you get Rs. 25,000 tax rebate u/s 87A which makes your income tax as zero with new tax regime.

How much tax will I pay if my salary is 12 lakh?

With 12 Lakh salary, income with with old regime will be Rs. 1,63,800 and with new regime will be Rs. 85,800. Here we have not considered deduction options apart from standard deduction of Rs. 50,000.

You can save income tax with old regime by making more investments in various sections.

What is tax on 8 lakh salary?

Income tax with 8 lakh salary is Rs. 65,000 with old tax regime and Rs. 31,200 with new tax regime. You can save income tax with old regime by making more investments in various sections.

How much tax do I pay on 10 lakh salary?

Tax on 10 lakh salary is Rs. 1,06,600 with old tax regime and Rs. 54,600 with new tax regime. You can save income tax with old regime by making more investments in various sections.

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Income Tax Calculator App – FinCalC

For Income Tax Calculation on your mobile device, you can Download my Android App “FinCalC” which I have developed for you to make your income tax calculation easy.

What you can do with this mobile App?

Calculate Income Tax for new FY 2024-25 and previous FY 2023-24
Enter estimated Investments to check income tax with Old and New Tax Regime
Save income tax details and track regularly
Know how much to invest more to save income tax
More calculators including PPF, SIP returns, Savings account interest and lot more

Download Income Tax Calculator APP from play store

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