Introduction to Personal Tax and Residency Calculator:
Finance Act, 2020 introduced the following significant amendments with regards to individual income tax (duly amended from time to time):
- Optional new tax regime for individuals with revised income slabs and reduced tax rates. Taxpayers meeting specific criteria may opt for this regime, calculating tax on total income without claiming prescribed deductions or exemptions
- Subsequently, the Finance Act 2023 made the new tax regime the default option for the financial year 2023-24, while also permitting certain additional deductions and lowering the surcharge rate
- The Finance Act 2024 further amended the new tax regime by updating tax rates and income slabs followed by an increase in the standard deduction and deduction towards family pension income.
The annexed links may help in determining the likely residential status and the impact of the tax regime changes under various circumstances:
