IT calculator for AY 2024-25 with IT ready reckoner for FY 2023-24

Pranab Banerjee , Last updated: 22 February 2023
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A quick review (Limited Information) of the applicable provisions under the Income Tax Act, 1961 for the F. Y. 2023-24 (A. Y. 2024-25), after incorporating amendments (only key and selective amendments) proposed by the Union Budget of 2023, are given below for ready reference and information.:-

(NOTE: The Budget of 2023 has made the New Tax Regime u/s 115BAC a "Default Regime" and the Old Tax Regime has become "Tax Inefficient" for Assessees (other than having brought forward and carried forward losses) and therefore the provisions of Old Tax Regime are given as an Annexure)

IT calculator for AY 2024-25 with IT ready reckoner for FY 2023-24

"TAX RATE" UNDER "NEW TAX REGIME" FOR INDIVIDUAL, HUF, AOP, BOI (U/S 115BAC)

SLAB	TOTAL INCOME	Rate of Tax	TAX CALCULATOR
I	Upto Rs. 3,00,000/-	0 %	NIL
II	Rs. 3,00,001/- to Rs. 6,00,000/-	5%	(Total Income - 3,00,000)*5%
III	Rs. 6,00,001/- to Rs. 9,00,000/-	10 %	15000 + (T.I. - 600000)*10%
IV	Rs. 9,00,001/- to Rs. 12,00,000/-	15 %	45000+(T.I.- 9,00,000)*15%
V	Rs. 12,00,001/- to Rs. 15,00,000/-	20 %	90000 + (T.I. - 12,00,000) * 20%
VII	Above Rs. 15,00,000/-	30 %	1,50,000/- + (T.I. - 15,00,000) * 30%

ALLOWABLE DEDUCTIONS/ INCENTIVES IN THE NEW TAX REGIME

Section	Nature	Allowable Deduction Limit
16 (ia)	Standard Deduction to Salaried Employees	Upto Rs. 50,000/-
57 (iia)	Family Pension paid to the Family Member after the death of the Employee by the Employer	Lower of (i) Rs. 15000/- or (ii) 33 1/3 % of such Family Pension Received
80 CCD (2)	Employer Contribution to National Pension Scheme (NPS)	For Central & State Govt Employees - Limit is 14% off of Salary; For Other Employees - Limit is 10% of Salary;
80 CCH	Amount Deposited under the Agniveer Corpus Fund	100% Amount Deposited
80 JJA	Profits and Gains from the Business of Collecting and Processing of Biodegradable Waste	100% upto 5 years of commencement of business
80 LA (1A)	Income of unit of an International Financial Services Center	100% for any consecutive 10 years out of the first 15 years
87A	Rebate	25,000/- or Tax Liability whichever is lower for Resident Individuals with income upto 7,00,00/-

EXEMPTIONS ALLOWABLE UNDER THE NEW TAX REGIME

Interest and final payment under PPF [u/s 10(11)]
Interest and final payment under Sukanya Samriddh Yojna [u/s 10(11A)]
Sum received from Life Insurance Policy [10(10D)] - New Policy after 01-04-2023 limit upto 5 Lakhs annual premium
Payments including withdrawals from NPS [u/s 10(12A)/(12B)]
Gratuity [u/s 10(10)], Commutation of Pension [u/s 10(10A)], Leave Encashment [u/s 10(10AA)], Retrenchment Compensation [u/s 10(10B)], Compensation on Voluntary Retirement or Separation [u/s 10(10C)], Non Monetary Perquisite by Employer [u/s 10(10CC)], Interest and Withdrawal from Recognised Provident Fund [u/s 10(12)], Payment from approved Superannuation Fund [u/s 10(13)]
Alternate Minimum Alternate Tax u/s 115JC is not applicable in the case of the Lower Tax Regime.

BLOCKED DEDUCTIONS/ INCENTIVES IN THE NEW TAX REGIME

Leave Travel Concession [u/s 10(5)]
House Rent Allowance [u/s 10(13A)]
Special Allowance other than those as may be prescribed [u/s 10(14)]
Allowances to MP/ MLAs [u/s 10(17)]
Exemption of Rs. 1500/- for clubbed income of minor child [u/s 10(32)]
Special Economic Zone [u/s 10AA]
Entertainment Allowance Deduction [u/s 16(ii)]
Professional Tax Deduction [u/s 16(iii)]
No Adjustment of Losses brought forward from earlier years and/or Additional Depreciation of earlier years is permitted.
No adjustment for the depreciated value of a block of assets brought forward is permitted.
Loss on account of Interest on Home Loan [u/s 24(b)]
Additional Depreciation [u/s 32(1)(iia)]
Investment Allowance in case of Backward Area [u/s 32AD]
Tea/ Coffee/ Rubber Development Account [u/s 33AB]
Site Restoration Fund [u/s 33ABA]
Deduction for Scientific Research [u/s 35(1) (ii)/(iia)/(iii), 35(2AA)]
Capital Expenditure pertaining to Specified Business [u/s 35AD]
Agricultural Extension Project [u/s 35CCC]
Deduction u/s 80C to 80U [except Employers Contribution to NPS u/s 80CCD(2), Agniveer Corpus Fund u/s 80CCH, deduction u/s 80JJA and 80LA(1A)]
No Adjustment of Losses brought forward from earlier years and/or Additional Depreciation of earlier years is permitted.
No adjustment for the depreciated value of a block of assets brought forward is permitted.

CONDITIONS & RESTRICTIONS ON "OPTING OUT" OF THE NEW TAX REGIME

The new Tax Regime u/s 115 BAC is Default Tax Regime from FY 2023-24 onwards and provisions for Opting Out of the Old Scheme are as below:-

For Assessees not having business income annual option can be exercised along with the return of income;

Section		Nature of Income		Income Tax Rate
111A		Short-Term Capital Gain - Listed Equities & Equity MF		15%
112		Long-Term Capital Gain - Others		20%
112A		Long-Term Capital Gain above Rs. 1 Lakhs - Listed Equities, Equity MF, certain ULIPs		10%
115BB		Winning from Lotteries, Crossword Puzzles, or race including horse races or Card Game or Sport in India or gambling or betting in any form or nature whatsoever (Other than Online Gaming)		30%
115BBJ		Tax on Winnings from Online Gaming		30% of Net Winning
S.No.	Quantum of Income of Assessee		Rate of Surcharge only on Income Taxable u/s 111A, 112, 112A & Dividend		Rate of Surcharge on all Other Incomes
1	Total Income up to Rs. 50 Lakhs		Nil		Nil
2	Total Income > 50 Lakhs <= 1 Crore		10%		10%
3	Total Income > 1 Crore <= 2 Crore		15%		15%
4	Total Income > 2 Crores (excluding income u/s 111A, 112, 112A & Dividend)		15%		25%
5	Total Income > 2 Crores including income u/s 111A, 112, 112A & Dividend(cases not covered in S. No. 4 and 5 above)		15%		15%

For Assessees having business income one-time option can be exercised before the due date for filing a return of income and the same shall continue for subsequent years; Provided that for Business Assessees the option for Old Regime can be withdrawn only once and once withdrawn such person cannot opt for old regime again.

"SPECIFIED TAX RATES" IN CERTAIN CASES (SELECTED SECTIONS ONLY) OVERRIDING THE REGULAR TAX RATE

"Health & Education Cess" - 4% of the Income Tax & Surcharge"

TOTAL TAX PAYABLE = TAX + SURCHARGE + HEALTH & EDUCATION CESS"

RATE OF INCOME TAX ON PARTNERSHIP FIRMS & LLPs

Rate of Income Tax @ 30 % of Total Income

Surcharge - If Total Income upto 1 Crore - NIL

If Total Income > 1 Crore - 12%

Health & Education Cess - 4% of the Income Tax & Surcharge (replaced 3% Cess in the preceding year)

Expenses that can be claimed only if mentioned in the Partnership Deed of the Firm

Remuneration was permissible to Partners - subject to the Limit prescribed below:-

Book Profit (BP) of the Firm	Allowable Remuneration
In case of Loss	Rs. 150000/-
Book Profit (BP) <= Rs. 3 Lakhs	Higher of Rs. 1,50,000/- or @ 90 % of Book Profits
Book Profit (BP) > Rs. 3 Lakhs	2,70,000/- + (BP - 3,00,000) * 60%

Interest on Partners Capital (if provided in the Partnership Deed) is allowed up to a Maximum of 12 % p.a.

TAX RATE ON INDIVIDUALS, HUFs, AOP, BOI UNDER OLD TAX REGIME (OPTIONAL)

Tax Calculator (General Category & Women)

SLAB	TOTAL INCOME	Rate of Tax	TAX CALCULATOR	COMMENTS
I	Upto Rs. 2,50,000/-	0 %	NIL	NO CHANGE
II	Rs. 2,50,001/- to Rs. 5,00,000/-	5%	(Total Income - 2,50,000)*5%	NO CHANGE
III	Rs. 5,00,001/- to Rs. 10,00,000/-	20 %	12500 + (T.I. - 500000)*20%	NO CHANGE
IV	Above Rs. 10,00,000/-	30 %	112500+(T.I.- 10,00,000)*30%	NO CHANGE

Tax Calculator (Senior Citizen - Age 60 Years and above)

SLAB	TOTAL INCOME	Rate of Tax	TAX CALCULATOR	COMMENTS
I	Upto Rs. 3,00,000/-	0 %	NIL	NO CHANGE
III	Rs. 3,00,001/- to Rs. 5,00,000/-	5%	(Total Income - 3,00,000)*5%	NO CHANGE
IV	Rs. 5,00,001/- to Rs. 10,00,000/-	20 %	10000 + (T.I. - 500000)*20%	NO CHANGE
V	Above Rs. 10,00,000/-	30 %	110000+(T.I.- 10,00,000)*30%	NO CHANGE

Tax Calculator (Very Senior Citizen - Age 80 Years)

SLAB	TOTAL INCOME	Rate of Tax	TAX CALCULATOR	COMMENTS
I	Upto Rs. 5,00,000/-	0 %	NIL	No Change
II	Rs. 5,00,001/- to Rs. 10,00,000/-	20 %	(T.I. - 5,00,000)*20 %	No Change
III	Above Rs. 10,00,000/-	30 %	1,00,000+(T.I.- 10,00,000)*30%	No Change

SELECTED DEDUCTIONS AND BENEFITS UNDER INCOME TAX FOR INDIVIDUALS

Section	Nature	Deduction Upper Limit	Comments/ Remarks
16 (ia)	Standard Deduction to Salaried Employees	50,000/-	No Change
23(2) & 23(4)	Deduction of Deemed Rent on Self-Occupied House	Entire Deemed Rent of 2 Houses "not Let Out" by an Assessee	No Change
24 (b)	Interest on Housing Loan (For Self Occupied Property)	Upto Rs. 2 Lakhs	In the case of Let Out House Property the entire Interest is deductible; however by virtue of Section 71 (3A), the maximum loss of only upto Rs. 2 Lakhs can be set off against income from other heads of income and excess if any shall be carried forward for set- off in succeeding 8 years.
80 C	Investments in Life Insurance Premium, PF, PPF, NSC, ULIP, Tax Benefit Mutual Funds, Tuition Fees (2 Children), Home Loan Principal Repayment, Notified Bonds, 5 Yr FDs, etc	Upto Rs. 1.50 Lakhs	For Central Government Employees, a contribution to the specified account of the Pension Scheme referred to in Section 80CCD subject to conditions, has been included for deduction in this section.
80 CCD	Investment in National Pension Scheme (NPS)	Upto Rs. 0.50 Lakhs	For Central Govt Employees - Limit is 14% off of Salary; For Other Employees - Limit is 10% of Salary; individuals other than employees - the limit of investment in NPS is 20% of GTI
80 D	Mediclaim Insurance	Sr. Citizen: Rs. 50000 Others: Rs. 25000	No Change
80 E	Interest in Education Loan (Upto maximum of 8 years from the year of the first repayment)	Entire Interest Paid during the year	Education Loan must be taken by that Individual; For Higher Education of Self, Spouse, Children, or student for whom, he is a legal guardian; The loan is taken from any Financial Institution or approved Charitable Institution;
80 EEA	Additional Interest on Home Loan for 1st Residential House Property	Rs. 1,50,000/-	Loan sanctioned between 01-04-19 to 31- 03-22; Stamp Duty Value of property not exceeding Rs. 45 Lakhs; Deduction of Interest is only allowed once and cannot be claimed in both 24(b) and 80EEA or any other section;
80 EEB	Interest on Loan for Purchase of Electric Vehicle	Rs. 1,50,000/-	A loan is sanctioned by a Financial Institution (including NBFC) between 01- 04-2019 to 31-03-2023; and The assessee does not own any other Electronic Vehicle on the date of sanction of the loan. No deduction is allowed for this interest in any other section of the IT Act
80 GG	Rent Paid	Lower of Following: 1. Rs. 5000 p.m. 25% of Total Income; Rent Paid - 10% of Total Income	No Change
80TTA	Interest from Savings Account	Rs. 10000/-	This is allowed to the extent of Interest earned from the Savings Account. No Benefit under this section if benefit u/s 80TTB is claimed.
80TTB	Interest from Deposits in Banking Co or P.O.	Rs. 50000/-	Only for Senior Citizens (Aged 60 years) without TDS Liability.
87A	Rebate	12,500/- or Tax Liability whichever is lower	Applicable only for Individuals resident in India with Total Income upto Rs. 5,00,000/-