Old vs New Tax Regime Calculator Excel-Which is Better?

Old vs New Tax Regime Calculator Excel

Old vs New Tax Regime Calculator Excel: For the last few years Indian tax filers are finding both tax regimes handy depending upon their situations or needs. It seems very unlikely that both tax regimes will continue in the near future.

While two tax regimes are being continued simultaneously, one needs to choose which tax regime is beneficial to him/her based on his/her requirements or existing financial conditions. Today we will discuss the Old vs New Tax Regime Calculator Excel, which will help you make an informed decision and reduce your tax liability as far as possible.

It should be made very clear that the purpose of introducing the new tax regime is to diminish the various tax deductions which we still are eligible to claim under the old tax regime.

With time, the availability of tax deductions would very likely to come down and income tax slabs will increase under the new tax regime, which is quite likely to be the only tax regime to prevail in the future.

Old VS New Tax Regime Calculator – Deductions not allowed under New Tax Regime:

As per Section 115BAC, a taxpayer choosing the new income tax regime is not eligible to claim the following income tax deductions which were earlier allowed under the old tax regime:

Leave travel concession U/S 10(5);
House rent allowance U/S 10(13A);
Allowance for the income of minor as contained in section 10(32);
Entertainment allowance and Professional tax as contained in U/S 16;
Deduction on account of Interest paid U/S 24 i.r.o self-occupied house property;
Savings Bank Interest U/S 80TTA and 80TTB;
Set off of carried forward losses and Depreciation are not permitted now;
Deductions under chapter VIA such as section 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80EE, 80EEA, 80EEB, 80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB, 80-IAC, 80-IB, 80-IBA.

Old vs New Tax Regime Calculator Online – Deductions which are allowed under New Tax Regime:

Leave travel concession U/S 10(5);
Standard Deduction of Rs.50,000/- introduced in the new tax regime and applicable w.e.f 1^stApril 2023;
Exemption on Terminal or Leave encashment at retirement up to Rs.25,00,000/- U/S 10(10AA);
Allowance for the income of minor as contained in section 10(32);
Entertainment allowance and Professional tax as contained in U/S 16;
Transport Allowance for a specially-abled persons ;
Deduction on account of Interest paid U/S 24 i.r.o Let-out house property;
Daily Allowance/ Conveyance Allowance/ Perquisites for Official Tours;
Employer’s contribution to NPS applicable from F.Y 2022-23;
Any amount of contributions to Agniveer Corpus Fund U/S 80CCH;

Old Tax Regime vs New Tax Regime Calculator

Old Tax Regime

It encourages investment in tax saving instruments;
Existing income tax deductions are allowable;
Standard Deductions of Rs.50,000/- is allowed for salaried employees;
Professional Tax Deduction allowed max Rs.2,500/-;
Benefit of Housing Loan interest payment is allowed U/S 24(b) max Rs.2,00,000/- in a year;
Only 3 tax slabs — 5%, 20% and 30% are applicable;
Tax rebate limit is up to Rs. 5 Lakh;
Maximum Tax Rebate is Rs. 12,500/-;
Basic exemption limit is Rs.2.50 Lakh;
Deductions under Chapter VIA are allowed;

New Tax Regime

It discourages investments in tax saving instruments;
Major existing deductions are disallowed;
Budget 2023 has introduced Standard Deduction of Rs.50,000/-;
Professional Tax deductions are not allowed;
Housing loan interest benefit U/S 24(b) for self-occupied house property is not allowed;
5 tax slabs — 5%, 10%, 15%, 20% and 30% are applicable;
Tax rebate limit is up to Rs. 7 Lakh;
Maximum Tax Rebate is Rs. 25,000/-;
Basic exemption limit is Rs.3 Lakh;
No deductions under Chapter VIA are allowed except Employer’s contribution to NPS and newly introduced Agniveer contribution;

Income Tax Calculation Old vs New

This is very important to know that from F.Y 2023-24, the new tax regime has been the default tax regime. It means your tax calculation will be based on the new tax regime and if you want to choose the old tax regime you need to submit one declaration to your employer.