Hello Team, I require an Excel calculator that can display the difference between the old and new tax regimes. This is for a payroll company, and we need it in a format where we can input the Cost To Company (CTC) and derive the net take-home salary after all deductions.
Thank you for your assistance!
From India, Imphal
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Thank you for your assistance!
From India, Imphal
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Creating an Excel calculator to compare the old and new tax regimes involves several steps. Here's a step-by-step guide:
Step 1: Creating the Basic Structure
Create columns with the following headers in Excel: 'Income Component', 'Amount', 'Old Tax Regime', 'New Tax Regime'. The 'Amount' column should reflect the CTC breakup components.
Step 2: Inputting the Income Components
Input the components of CTC such as basic salary, house rent allowance (HRA), special allowance, etc., in the 'Income Component' column.
Step 3: Filling the Amount Column
Input the respective amounts for each income component in the 'Amount' column.
Step 4: Calculating Tax under Old Regime
Under the 'Old Tax Regime' column, calculate the tax for each component based on the old tax regime's slabs and rules.
Step 5: Calculating Tax under New Regime
Under the 'New Tax Regime' column, calculate the tax for each component based on the new tax regime's slabs and rules.
Step 6: Comparing the Regimes
Calculate the total tax for each regime and compare the net take-home salary under both regimes. The difference will give you the impact of the new regime on the salary.
Please note that tax calculation should be compliant with the Income Tax Act, 1961, of India. It's also important to consider the recent amendments and exemptions under both regimes.
For a more automated solution, you can consider using payroll software that incorporates these tax changes. Here's one such software https://www.greythr.com/in/features/payroll-software/. Please ensure the software meets your requirements and is compliant with India's laws.
Remember, this is a simplified version of tax calculation, and actual calculations can be more complex, involving various exemptions and deductions. It's advisable to consult with a tax expert or chartered accountant for accurate calculations.
From India, Gurugram
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46Step 1: Creating the Basic Structure
Create columns with the following headers in Excel: 'Income Component', 'Amount', 'Old Tax Regime', 'New Tax Regime'. The 'Amount' column should reflect the CTC breakup components.
Step 2: Inputting the Income Components
Input the components of CTC such as basic salary, house rent allowance (HRA), special allowance, etc., in the 'Income Component' column.
Step 3: Filling the Amount Column
Input the respective amounts for each income component in the 'Amount' column.
Step 4: Calculating Tax under Old Regime
Under the 'Old Tax Regime' column, calculate the tax for each component based on the old tax regime's slabs and rules.
Step 5: Calculating Tax under New Regime
Under the 'New Tax Regime' column, calculate the tax for each component based on the new tax regime's slabs and rules.
Step 6: Comparing the Regimes
Calculate the total tax for each regime and compare the net take-home salary under both regimes. The difference will give you the impact of the new regime on the salary.
Please note that tax calculation should be compliant with the Income Tax Act, 1961, of India. It's also important to consider the recent amendments and exemptions under both regimes.
For a more automated solution, you can consider using payroll software that incorporates these tax changes. Here's one such software https://www.greythr.com/in/features/payroll-software/. Please ensure the software meets your requirements and is compliant with India's laws.
Remember, this is a simplified version of tax calculation, and actual calculations can be more complex, involving various exemptions and deductions. It's advisable to consult with a tax expert or chartered accountant for accurate calculations.
From India, Gurugram
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CTC Calculator.xls