The central government introduced a new tax regime with concessional tax rates under the section
115BAC in the 2020 budget.
In the income tax regime of UnionBudget 2023, the government has made the following important
changes for the financial year (F.Y) 2023-24:
Complete exemption from income tax up to Rs. 7 lakhs has been provided under the new tax regime
under Section 87A of the Income-tax Act, 1961.
Limits on tax exemptions under the old tax system for the 2023-24 tax year Limits on tax exemptions under the new tax system for the 2023-24 tax year Rs..5 lakhs. 7 lakhs
Features of this Excel utility:-
1) This Excel utility can prepare 50 employees at a time, Form 16, Part B, according to the 2022-23 budgets
2) This utility can be used by government and non-government concerned
3) Calculate your income tax automatically according to the New and Old Tax Regime
4) This Excel utility contains all the income tax sections according to the Income Tax Act.
5) This Excel utility can only be used as an Excel file
6) This Excel utility can be used by anyone and is easy to use.
If you claim the standard tax deduction of Rs 50.000, you should not pay tax. At an income cap of Rs 50,000. 7.5 lakhs.
Increase in basic tax exemption limit
The basic tax exemption limit of Rupees Two Lakh and Fifty Thousand under the old tax system increased to Rupees Three lacks under the new tax system.
Age categories Limit of basic tax exemption under old tax regime for 2023-24 tax year Limit of basic tax exemption under new tax regime for 2023-24 tax year
< 60 years of age Rs. 2.5 lakhs. 3 lakhs
60-80 years of age Rs. 3 lakhs
> Years Age Rs. 5 lakhs
If you opt for the new tax regime, the last exemption limit will take effect on April 1, 2023.
Salaried persons are eligible to claim the benefit of a standard deduction of Rs. 50,000 under the new tax regime.
Family pensioners can also claim the standard deduction of Rupees Fifteen thousand under the new tax regime.
Features of this Excel utility:-
1) This Excel utility can prepare 50 employees at a time, Form 16, Part A&B, according to the 2022-23 budgets
2) This utility can be used by government and non-government concerned
3) Calculate your income tax automatically according to the New and Old Tax Regime
4) This Excel utility contains all the income tax sections according to the Income Tax Act.
5) This Excel utility can only be used as an Excel file
6) This Excel utility can be used by anyone and is easy to use.
The new tax system is the default option
The new tax system is the default option for income tax deductions by an employer and the Internal Revenue Service.
Importance of exemptions and deductions in the new tax system
Let’s understand the keywords from the list below:
1. Deductions under the new tax system
• Refers to expenditures or investments made by the taxpayer that can be subtracted from his total gross income to arrive at taxable income
• Deductions can help reduce the tax liability of an individual or business
2. New tax system exemptions
• Refers to income or investments made by the taxpayer that are not included in the computation of his taxable income
Discounts and deductions are not available in the new tax system
Features of this Excel utility:-
1) This Excel utility can prepare 100 employees at a time, Form 16, Part B, according to the 2022-23 budget
2) This utility can be used by government and non-government concerned
3) Calculate your income tax automatically according to the New and Old Tax Regime
4) This Excel utility contains all the income tax sections according to the Income Tax Act.
5) This Excel utility can only be used as an Excel file
6) This Excel utility can be used by anyone and is easy to use.
From the table below, let’s find out the main exemptions and deductions in the new tax
Not required by a natural person:
Unclaimed tax deductions and exemptions in the new tax system
The standard deduction under Section 80TTA and Section 80TTB
Deductions Under Section 80C to 80CCD(1) and Chapter VI-A as per the Income Tax Act Act
Professional do
Entertainment subsidy on salary
House Rent Allowance (HRA)
License for Travel Allowance (LTA).
Pay helper allowance
Child Education Assistance
Income allowance for a minor child
Interest on occupied housing loans/vacant properties
Other Special Allowances A/ Section 10(14)
Employee contribution to the NPS account
Donations to political parties/foundations
Comparing cuts under the old regime versus. New regime for FY 2023-24
The table below shows a comparative analysis of the deductions available in the old versus. The new tax system:
Exemptions/ Deductions Available Old Tax System New Tax System
The standard deduction of Rs. 50,000 Yes, Yes
Employment/Business Tax Section 10(5) Yes No
Housing Rent Allowance (HRA) U/ S 10(13A) Yes No
Free meals through food vouchers/coupons Yes No
Deduction up to Rs. 1.5 lakh under
Chapter VIA U/ Sec for investments
like 80C, 80CCC, 80CCD, 80DD, 80DDB,
80E, 80EE, 80EEA, 80G, etc. Yes, No
Deduction for employer’s contribution to
Employee NPS accounts u/ Sec 80CCD(2) Yes Yes
Deduction u/sec 80CCD(1B) Up to Rs. 50,000 Yes No
Medical Insurance Premium U/Sec 80D Yes No
Interest on Housing Loan for Autonomous
Property / Vacancy Yes No
Feature of this Excel Utility:-
1) This
Excel utility prepares and calculates your income tax as per the New Section
115 BAC (New and Old Tax Regime)
2) This
Excel Utility has an option where you can choose your option as a New or Old Tax
Regime
3) This
Excel Utility has a unique Salary Structure for Government and Non-Government
Employees Salary Structure.
4) Automated
Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the
F.Y.2000-01 to F.Y.2023-24 (Update Version)
5) Automated
Income Tax Revised Form 16 Part A&B for the F.Y.2023-24
6) Automated
Income Tax Revised Form 16 Part B for the F.Y.2023-24
