Old vs New Tax Regime 2023-24 [Excel DOWNLOAD]

There were multiple changes in new tax regime in Budget 2023 which will be applicable from FY 2023-24 onwards. What are the old vs new tax regime changes, which tax regime will be better for you and which one you should opt for in FY 2023-24? We will address all these queries in this article along with Old vs New Tax Regime 2023-24 calculator in excel.

In FY 2023-24, tax rebate limit for new tax regime will be Rs. 7 lakh, due to which no tax will be paid if income is up to 7 lakh with new tax regime. Old Tax regime still has this limit at Rs. 5 lakh income. Also the tax slab rates in new tax regime have been reduced. Standard Deduction of Rs. 50,000 will be available in new tax regime also from FY 2023-24.

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Note that above excel calculator includes old regime tax calculation for people of age below 60 years.

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Let us now see the various income tax slab rates of old and new tax regimes based on age groups.

Income Tax Slab Rates

First we will see income tax slab rates for people of age below 60 years.

Income Tax Slab Rates for age up to 60 Years

If your age is below 60 years in FY 2023-24, below are the Tax slab rates for you based on Old Tax Regime:

As seen above, there are no changes in old tax regime slab rates.

Let us now see the reduced tax slab rates, that is New Tax Regime for age up to 60 years:

So New Tax regime has reduced tax slab rates compared to old tax regime. But you will not get any deduction options to save income tax in new tax regime apart from standard deduction = Rs.50,000 (if salaried).

Let us now see the Old vs New Tax Regime Slab Rates for Senior citizens – age 60 years and above but less than 80 years .

Tax Slabs for Senior Citizens

If your age is 60 years and less than 80 years in FY 2023-24, below are the Tax slab rates for you based on Old Tax Regime:

As seen above, here the basic exemption limit for senior citizens is Rs. 3 Lakh of income, up to which no income tax need to be paid.

Let us now see the reduced tax slab rates, that is New Tax Regime for Senior Citizens:

As mentioned above, the tax slab rates in new tax regime is same for all age groups irrespective of whether you are a senior citizen or non senior citizen.

Let us now see Old vs New Tax Regime Slab Rates for Super Senior Citizens

Income Tax Slab Rates for Super Senior Citizens

If your age is 80 years or above in FY 2023-24, below are the Tax slab rates for you based on Old Tax Regime:

Super senior citizens in India get extra exemption limit of up to Rs. 5 Lakh in a financial year, on which they don’t need to pay any income tax. This may be due to most of the super senior citizens are already retired by this time.

But still, if you are following your passion and generating good revenue out of it, you need to pay tax! So, Above 5 Lakh of income, the slab rates are same on the income as compared to other citizens.

Let us now see the reduced tax slab rates, that is New Tax Regime for Super Senior Citizens:

So the tax slab rates in new tax regime is same for super senior citizens as well.

So these are the Old vs New Tax Slab Rates in India for FY 2023-24. If any of your friends is confused about the slab rates in India than share this article with them!

ALSO READ: How to Save Tax on Salary above Rs. 5 Lakh

How much Income Tax on 7 lakh?

So what will be the income tax on 7 lakh income in FY 2023-24?

Considering only Standard deduction of Rs. 50,000 in both tax regime, income tax with old regime is Rs. 44,200 and new regime will be Rs. 0, as seen below:

Why tax is Rs. 0 with new tax regime? As you can see above under new slabs column, you get tax rebate of Rs. 20,000 which cancels the income tax according to new tax regime, since taxable income is within Rs. 7 lakh. This is due to the new rule in Budget 2023 about tax rebate with new tax regime up to income = Rs. 7 Lakh.

So it’s better to select new tax regime with 7 lakh income and deductions considered.

How much Income Tax on 10 lakh?

Now what if your income is Rs. 10 Lakh?

First let us see the calculations with only Standard Deduction of Rs. 50,000:

As seen above, you still pay less income tax with new regime (Rs. 54,600) compared to old regime (Rs. 1,06,600). But over here we have only considered Standard deduction of Rs. 50,000 in both regimes.

What is we have more deductions options under Section 80C (Rs. 1.5 lakh), National Pension System (Rs. 50,000), House Rent Allowance (HRA) or Home Loan Interest Tax Benefits (Section 24), etc.?

Let’s say we have total of Rs. 3.5 lakh deductions in above mentioned schemes. Below is the updated income tax figures with both regimes:

As seen above, with investments and deductions of Rs. 3.5 lakh in FY 2023-24, Old tax regime helps you pay less tax (Rs. 44,200) compared to new tax regime (Rs. 54,600).

Note that only Standard deduction = Rs. 50,000 is applied in new tax regime. No other investments are allowed in new tax regime whereas all deductions are still applicable in old tax regime.

Is there any change in old tax regime in Budget 2023?

No. There are no changes made in old tax regime for FY 2023-24. You can also use online income tax calculator to compared tax with old and new tax regimes.

Old vs New Tax Regime – Which is Better?

This is very important question as to which tax regime is better for you? Should you go for old or new tax regime.

So it depends on your individual income and investments. We have seen in above examples that even if your income is Rs. 10 lakh, you can make investments and claim deductions to reduce your income tax with old tax regime and choose old regime.

But in the same example, we have seen that without deductions, new tax regime will be better for you to pay less income tax. So there is no best fit for all here.

Each individual need to check their own income levels and investment options for which deductions are to be claimed and accordingly choose between old and new tax regime.

So don’t copy your friend or relative and blindly select tax regime. Analyze your income and investments, use resources I have made available for you for FREE (you can donate too ;)) and take decision accordingly.

How much tax rebate in new tax regime?

For FY 2023-24, tax rebate of maximum Rs. 25,000 will be available in new tax regime, if your income is up to Rs. 7 Lakh.

With Old Tax Regime – tax rebate of maximum Rs. 12,500 is available on income up to Rs. 5 Lakh.

Conclusion

So you can easily download the old vs new tax regime calculator 2023-24 in excel using the form at the start of the article.

With you income and investment options or deductions, you should decide which tax regime will be better for you and decide accordingly to opt for same. Note that new tax regime will be selected by default for FY 2023-24 but you have the option to select old tax regime as well.

Some more Reading

• How to change tax regime from new to old or vice versa
• PF Withdrawal Online Process – Provident Fund
• All Deductions allowed for tax payers
• Rs. 2000 SIP vs Step up SIP Returns Calculation

Frequently Asked Questions

Section 80C deductions available in New Tax Regime?

No. Section 80C deductions are not available in new tax regime for FY 2023-24. Only Standard Deduction = Rs. 50,000 is available in new tax regime for salaried and pensioners.

All deductions will be available in Old Tax Regime.

How no tax on 7 lakh income with new tax regime?

Based on 5% slab in Rs. 3 lakh to Rs. 6 lakh and 10% slab in Rs. 6 lakh to Rs. 7 lakh, the income tax is Rs. 25,000. But this Rs. 25,000 tax is cancelled by tax rebate provided by Government in new tax regime for FY 2023-24, and that is why we don’t have to pay any tax on 7 lakh with new regime.

Note that if income goes above Rs. 7 lakh, than this tax of Rs. 25,000 need to be paid. You also have to consider standard deduction of Rs. 50,000 in this case so ideally, no tax on income up to Rs. 7.5 lakh with new tax regime for FY 2023-24.

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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

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