Income Tax Calculator for AY 2024-25

May 24, 2023
Posted by: Amit Mundhra CA
Category: Income Tax

With the start of new financial year 2023-24, income tax calculator for AY 2024-25 has become quite important. The new slabs of income tax have become applicable. For estimating the tax liability there is a need to have Income Tax calculator for AY 2024-25 handy at many places.

Table of Contents

Why Income tax calculator for AY 2024-25 is needed?

The income tax calculator for AY 2024-25 is needed because of the below reasons.

To submit the income tax declaration for AY 2024-25 to your employers

To know which tax regime will be most beneficial.

To correctly estimate the income tax liability for AY 2024-25

For making the correct advance tax payment within respective due dates.

What is the difference between Old Tax Regime and New Tax Regime in AY 2024-25?

A basic explanation of Old Tax Retime and New Tax Regime is given below.

The Old Regime:

The old income tax regime is the traditional system that has been in place for many years. Under the old regime, taxpayers have the option to reduce their taxable income by claiming various deductions and exemptions. These deductions can include expenses like house rent, medical expenses, education expenses, and investments in certain financial instruments like provident funds and life insurance policies. The tax rates under the old regime increase as the income levels go up.

The New Regime:

The new income tax regime, introduced in recent years, offers a simpler tax structure with lower tax rates. It aims to make the tax system easier and get rid of the complexities of deductions and exemptions. Under the new regime, taxpayers cannot claim most of the deductions and exemptions available under the old regime. Instead, they have to pay taxes at lower rates based on their income slab without any deductions.