Sure, I'll be happy to help you understand the income tax calculation for FY 2023-24 in both new and old regimes in India.
📝 Old Regime:
Under the old regime, the tax slabs remain the same as they were in the previous years:
✅ Up to 2.5 lakhs: No tax
✅ From 2.5 lakhs to 5 lakhs: 5%
✅ From 5 lakhs to 10 lakhs: 20%
✅ Above 10 lakhs: 30%
Also, deductions under various sections like 80C, 80D, 24, etc., can be claimed in the old regime.
📝 New Regime:
The new tax regime has different tax slabs and rates:
✅ Up to 2.5 lakhs: No tax
✅ From 2.5 lakhs to 5 lakhs: 5%
✅ From 5 lakhs to 7.5 lakhs: 10%
✅ From 7.5 lakhs to 10 lakhs: 15%
✅ From 10 lakhs to 12.5 lakhs: 20%
✅ From 12.5 lakhs to 15 lakhs: 25%
✅ Above 15 lakhs: 30%
But, most of the deductions, including those under sections 80C, 80D, 24, etc., cannot be claimed in the new regime.
🔍 Here's a step-by-step guide to calculate tax:
1. ✏️ Calculate your total annual income.
2. 📡 Deduct the exemptions (like HRA, LTA, etc.) and deductions (like 80C, 80D, etc.) if any, from your total income. This will give you the net taxable income.
3. 🔍 Apply the tax rates as per the tax regime you have chosen on your net taxable income.
4. 📌 Add the cess of 4% on your tax amount.
Remember, the choice between old and new tax regimes depends on individual circumstances such as your income level, eligible deductions, and personal preferences. I would recommend consulting with a tax advisor to make the best choice.