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For one to file an income tax return, it is important to compare old and new tax regimes before filing.
Both new and old tax regimes offer various benefits. Under the Finance Act, 2023, the new tax regime is the default choice. Under the old tax regime, taxpayers can claim several deductions and exemptions.
The first step that one needs to follow is to find a tax calculator by visiting the official website of the income tax department and checking the tax calculator under the comparison between tax regimes. After this, one needs to enter the basic details like choosing the taxpayer category.
After basic details, one needs to input the total income like salary or income from other sources. If the old tax regime is taken into consideration, then deductions under Sections 80C, and 80D can be applied.
Once all other steps are followed, the tax calculator generates tax liabilities under both regimes. This helps in choosing which option results in lower tax payments.