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.
We’ll see these income tax calculation examples in this article.
- Income Tax Calculation between 4 Lakh to 20 Lakh
- Income Tax Calculation for FY 2023-24 Video
- Income Tax Slab Rates 2023-24
- Income Tax Calculation Examples
- Income Tax Calculation formula in Excel
- How to Calculate your Income Tax
- Old vs New Tax Regime Which is Better?
- 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 for FY 2023-24 Video
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%|
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%|
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
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:
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:
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.
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
- No Income Tax up to Rs. 7.5 Lakh without investments
- Old vs New Tax Regime Which is Better
- TDS on Salary Calculator in Excel
- What is Standard Deduction
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.
SHOW your Support!
Found this Helpful? DONATE any amount to see more useful Content. Scan below QR code using any UPI App!
UPI ID: abhilashgupta8149-1@okhdfcbank
Verify that you are “Paying Abhilash Gupta” before making the transaction so that it reaches me. It makes my Day 🙂
Thank you for Donating. Stay Tuned!
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 2023-24 and previous FY 2022-23
- 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
Use Popular Calculators:
- Income Tax Calculator
- Home Loan EMI Calculator
- SIP Calculator
- PPF Calculator
- HRA Calculator
- Step up SIP Calculator
- Savings Account Interest Calculator
- Lump sum Calculator
- FD Calculator
- RD Calculator
- Car Loan EMI Calculator
- Bike Loan EMI Calculator
- Sukanya Samriddhi Calculator
- Provident Fund Calculator
- Senior Citizen Savings Calculator
- NSC Calculator
- Monthly Income Scheme Calculator
- Mahila Samman Savings Calculator
- Systematic Withdrawal Calculator
- CAGR Calculator
I’d love to hear from you if you have any queries about Personal Finance and Money Management.
JOIN Telegram Group and stay updated with latest Personal Finance News and Topics.
Download our Free Android App – FinCalC to Calculate Income Tax and Interest on various small Saving Schemes in India including PPF, NSC, SIP and lot more.
Follow the Blog and Subscribe to YouTube Channel to stay updated about Personal Finance and Money Management topics.