My understanding is that new tax regime of 7L announced in Budget 23 is applicable only next year from FY23-24… right ?
Also If I choose to migrate to new tax regime this year… can I shift back to old tax regime next year or vice-versa ?
New tax regime was introduced in Budget 2020 but yeah the <7L no tax is applicable from FY23-24 only
My understanding is that if it is only salary + income from other sources, you can switch between regimes. But if you also have business income (like me), then you can’t switch regimes every yr.
Here’s what the IT portal says: “For a person having Business Income, once the option to be taxed under the new tax regime has been exercised for a previous year, shall be valid for that previous year and all subsequent years till the business continues to exist.”
rebate upto income 7L is only available in new tax regime. right ?
Hi @Ddude
As correctly said by @sufimonks an individual can switch regimes for all incomes except “Income from Business & Profession”.
That means, form 10IE also needs to be filed whenever there is a change in the regime chosen.
Read more about Switching between Old Tax Regime & New Tax Regime for better understanding.
Hope this helps.
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Hi @Private
As per the budget 2023 announcement (applicable for FY 2023-24/AY 2024-25), under the new tax regime, no tax will be payable for income up to 7 lakhs for a resident individual. That means, that the maximum limit of rebate available under section 87A of the Income-tax Act, 1961 has been increased to Rs 25,000 from Rs 12,500 in Budget 2023.
Hope this helps.
@Quicko … interesting… from the link u sent it appears that even with business income someone can switch back ONCE from New to Old tax regime but NOT go back to New regime…
Hi @Ddude
Yes, that’s true. Even interpreting what the IT Portal says is the same.
Resident individuals reporting business income can switch regimes only once.
Hey @Quicko,
You guys have a brilliant tax calculator tool on your portal with both new vs old regime calculations shown side-by-side : https://tools.quicko.com/income-tax-calculator/
but unfortunately it is not yet showing updated calculations for current FY , i.e FY 23-24… (see screenshot below) or did i miss it somewhere?
Considering that the new tax regime becomes default from this FY and salaried ppl have to specifically choose the old tax regime (if they want to opt for it) & declare this to their employer by 30th April, it would be immensely helpful if you can add & update your tool to include for the current FY… Many salaried ppl are turning to armchair twitter “experts” (who are putting out their own hand-sketched WHIF chart versions with confusing plot-twists) for advice …
Hi @sufimonks
We will be adding FY 2023-24 to the tool soon.
Meanwhile, for FY 2023-24 you can visit https://it.quicko.com/ > Planning FY 2023-24 > New v/s Old Regime
Enter your income situation and Quicko will calculate taxes under both regimes.
Hope this helps.
Hi I use presumtive taxation for f&o and share trading non speculative. I also avail of 1 lakh LTCG exemption every financial year. Are these available under new tax regime also ? I plan to shift to new tax regime from financial year 2023-24.
Yes. All available.
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Hi why don’t u have cams and kfintech mutual funds integration. At least allow to upload an Excel format. It’s really tough to enter 100s of Mutual funds sales
We are actively working on partnering with tech-enabled investment platforms. We have taken your suggestion into consideration.