Calculate your income tax for the 2023-24 financial year (AY 2024-25) with this free Excel sheet. Suitable for salaried employees and business owners. Download and follow the instructions. This income tax calculator is for the financial year 2023-24 (assessment year 2024-25). Please note that the new tax regime was revised in Budget 2023.
Income Tax Calculator FY 2023-24 Excel Free Download sheet & Use:
- Download the Income Tax Calculator with name: “Income Tax Calculator FY 2023-24 Excel Free Download (AY 2024-25)” onto your device.
- Enter in your gross income for the financial year 2023-24.
- Deduct Investments and Standard Deduction: Enter the total amount of investments you made that qualify for tax deductions, including: Standard Deduction (Rs. 50,000 for employees) Section 80C investments (e.g., PPF, ELSS) Section 80CCD(1B) investments (employer’s pension contribution) Other eligible tax-saving options
- Add Your TDS: Include the total amount of tax deducted at source (TDS) from your salary during the year.
- Once you’ve entered all the details, the calculator will show your estimated income tax under both the Old and New Tax Regimes.
The Union Budget 2023 brought some significant changes to the new tax regime in India, making it more attractive for taxpayers in several ways. Here are some key highlights of the changes:
Increased Income Tax Slabs and Rebate:
- The basic exemption limit was increased to Rs. 3 lakh.
- The number of income tax slabs was reduced from six to five, with slightly increased margins for each slab.
- A full tax rebate was introduced under Section 87A for individuals with income up to Rs. 7 lakh under the new regime. This effectively translates to no tax liability for individuals earning up to Rs. 7 lakh.
Revised Surcharge Rates:
- The highest surcharge rate of 37% on income above Rs. 5 crore was reduced to 25%. This translates to a lower peak tax rate of 39% compared to 42.74% earlier.
Other Changes:
- Standard deduction of Rs. 50,000 was extended to salaried individuals under the new regime.
- Pensioners can also claim a standard deduction of Rs. 15,000 under the new regime.
- The new tax regime becomes the default regime for individuals, although they still have the option to choose the old regime.
These changes make the new tax regime more competitive with the old regime for a wider range of taxpayers. Individuals with lower incomes benefit from the increased exemption limit and rebate, while high-income earners benefit from the reduced surcharge rates.
Comparison of the Old Tax Regime and the New Tax Regime slab rates for the Financial Year 2023-24 and Assessment Year 2024-25:
Tax Regime Comparison:
| Income Range
(INR) |
Old Tax
Regime |
New Tax Regime
(Before Budget 2023) |
New Tax Regime
(After Budget 2023) |
|---|---|---|---|
| Up to 3,00,000 | 0% | 0% | 0% |
| 3,00,001 – 5,00,000 | 5% | 5% | 5% |
| 5,00,001 – 6,00,000 | 20% | 10% | 10% |
| 6,00,001 – 7,50,000 | 20% | 10% | 10% |
| 7,50,001 – 10,00,000 | 20% | 15% | 15% |
| 10,00,001 – 12,50,000 | 30% | 20% | 20% |
| 12,50,001 – 15,00,000 | 30% | 25% | 25% |
| Above 15,00,000 | 30% + Surcharge | 30% + Surcharge | 30% + Reduced Surcharge |
Detailed Comparison with Additional Benefits
| Income Range (INR) | Old Tax Regime (Deductions allowed) | New Tax Regime | Additional Benefits in New Regime (Budget 2023) |
|---|---|---|---|
| Up to 3,00,000 | Exempt | Exempt | Exempt |
| 3,00,001 – 5,00,000 | 5% (After deductions) | 5% | – Increased Basic Exemption Limit 3 lakhs |
| 5,00,001 – 6,00,000 | 20% (After deductions) | 10% | – Tax Rebate up to 7 lakhs |
| 6,00,001 – 7,50,000 | 20% (After deductions) | 10% | – Higher Leave Encashment Exemption (25 lakhs for non-govt) |
| 7,50,001 – 10,00,000 | 20% (After deductions) | 15% | – Family Pension deduction (15,000) |
| 10,00,001 – 12,50,000 | 30% (After deductions) | 20% | – Reduced Surcharge for High Net-worth Individuals (>5 crores) |
| 12,50,001 – 15,00,000 | 30% (After deductions) | 25% | – No deductions allowed |
| Above 15,00,000 | 30% + Surcharge (Deductions allowed) | 30% + Reduced Surcharge | – Deductions allowed if opted for |
As you can see, the New Tax Regime generally offers lower tax rates than the Old Tax Regime, especially for those in the lower income brackets. However, it is important to note that the New Tax Regime does not allow for any deductions or exemptions, which can be beneficial for taxpayers who make significant use of these deductions.
Ultimately, the best tax regime for you will depend on your individual circumstances. It is recommended that you consult with a tax advisor to determine which regime is most beneficial for you.
Frequently Asked Questions about Income Tax:
Which Tax Regime should I choose? (Old vs. New):
This depends on your income sources, deductions, and long-term investment plans. Compare your tax liability under both regimes before deciding.
How to calculate income tax for FY 2023-24?
Use the Income Tax Department website or a Download our Tax calculator to input your income, deductions, and investments. Official website: www.incometax.gov.in/iec/foportal/
What is the income tax update for FY 2023-24?
Stay updated on the latest changes in tax slabs, deductions, and exemptions through official channels or reliable tax websites.
How to calculate income tax on salary with example in Excel?
Find free online templates and guides on calculating income tax on salary in Excel. Or Download Excel sheet from above link.
How 7 lakh income is tax-free with example?
Under certain conditions, income up to Rs. 7 lakhs can be tax-free.
How can I get zero tax on 7.5 lakhs?
Achieving zero tax on 7.5 lakhs depends on your specific income sources and deductions. Consult a tax advisor for personalized guidance.
Why is 7 lakh income tax-free?
Under the New Tax Regime, individuals earning up to Rs. 7 lakhs may not pay any income tax if they don’t claim deductions or have any other taxable income.
