Introduction to Personal Tax and Residency Calculators:%
Finance Act, 2020 had introduced the following important changes with regard to individual income tax (duly amended from time to time):
- Optional tax regime for individuals with modified tax slabs and reduced rates. On satisfaction of certain prescribed conditions, an individual may opt to compute tax in respect of total income (without considering prescribed exemptions/ deductions), as per the new slab rates, instead of the existing tax regime.
- Pursuant to the above, the Finance Act, 2023 has amended the optional lower tax rate regime to be the default tax regime effective FY 2023-24. Further, the new tax regime has also been amended with updated tax rates and income slabs, allowability of certain additional deductions and reduced surcharge rate.
The annexed links may help in determining the likely residential status and the impact of the tax regime changes in certain scenarios: