The income tax deadline is quickly approaching, and it will expire on July 31. ITR filing after the deadline will result in a penalty. When submitting the ITR, taxpayers must select between the new and old income tax regimes. Taxpayers select it because of the tax advantages.

Use the official tax calculator ‘Income Tax India Calculator’, to figure out your income tax. This is the link for the calculator- Income and Tax Calculator (incometaxindia.gov.in)

You only need to enter your income and deduction information in the calculator to determine your income tax due. ‘Assessment Year’ will be the first column’s question. 2023–2024 is the current evaluation year. ‘Tax Payer’ will be a question in the second column. According to your source of income, you must select an alternative. ‘Individual’ should be chosen if you are an individual. The third choice will then provide you with the question “Are you choosing taxation under Section 115BAC?” If you select “Yes,” you are choosing the “new tax regime.” If you select “No,” you have chosen the previous taxation system.

In order to compute income tax, enter the facts of your income into the calculator. Notably, no deductions may be made to lower the tax burden if you adopt the new tax system. In the fiscal year 2023–24, annual income subject to the income tax system up to Rs 5 lakh was exempt from taxation. It has since grown to 7 lakh. Any income that exceeds this threshold is subject to tax, with the exception of the Rs 2.50 lakh exemption limit.

Up to Rs 2.50 lakh of income is free from taxes under the previous regime. If your income is higher than this threshold, but you own investments in tax-free securities, you may be able to use those to offset your tax obligation.

Which regime will work for you depends on your amount of income and investing preferences. This may also be verified using the income tax calculator for India.

The previous tax system was the default system for the final fiscal year 2022–2023. Those who wanted to use the new tax system had to make a specific selection. The new tax system has taken over as the default tax system as of 2023–2024. But it will be displayed in the ITR the next year.

Up to this point, 4.75 crore ITRs have been submitted for the current assessment year. Nearly 4.23 crore ITRs have been authorized from this total, and over 2.54 crore confirmed ITRs have been processed.