The Major Changes in New Income Tax 2023-24 FY are as follows:
Major Changes in Financial Bill 2023 for Personal Income Tax 2023-24
- Increase in Tax Rebate U/s 87A: Increase the rebate limit to 7 lakh in the new tax regime. Thus, persons in the new tax regime, with income up to 7 lakh will not have to pay any tax. Means there is an exemption of Rs 25,000 Tax in New Tax Regime 2023-24.
- Change in Tax Structure in New Tax Regime: Reducing the number of slabs in the new tax regime to 5 and increasing the tax exemption limit to Rs 3 lakh
- Standard Deduction in Income Tax New Tax Regime 2023-24: Extend the benefit of Rs 50,000 Standard Deduction to the New Tax Regime. Standard deduction of `
50,000 to salaried individual, and deduction from family pension up to ` 15,000, is currently allowed only under the old regime. It is proposed to allow these two deductions under the new regime also
- Reduce the highest surcharge rate from 37 per cent to 25 per cent in the new tax regime
- Increase tax exemption on leave encashment on retirement of non-government salaried employees limit to Rs 25 lakh
- The new tax regime for Individual and HUF, introduced by the Finance Act 2020, is now proposed to be the default regime
- No Changes in the Existing Old Tax Regime Slab System.
Note: Basing on the Changes the Income Tax Calculator 2023-24 FY is Prepared: Let us See How to use this software:
- Select Your State AP/TS. Basing on Your state, the HRA and Basic Pays will be displayed
- 1. Select Your Basic Pay of this Month
- 2. HRA : Select HRA as per your category
- 3. If Home Loan applicable, then Enter Housing Loan Amount otherwise Leave 0
- 4. If any allowances in Income, then enter other wise leave 0
- This calculator calculates the New Income Tax 2023_24 in One Click and gives your tax liability and compares
Old Tax Regime 2023-34 and New Tax Regime 2023-24 for your Income
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