diff --git a/increment_new_version.py b/increment_new_version.py
new file mode 100644
index 0000000..2d0faab
--- /dev/null
+++ b/increment_new_version.py
@@ -0,0 +1,106 @@
+import argparse
+import subprocess
+
+
+def get_latest_tag():
+    tag_list = (
+        subprocess.check_output(['git', 'rev-list', '--tags', '--max-count=1'])
+        .decode('utf-8')
+        .strip("\n")
+    )
+    return (
+        subprocess.check_output(['git', 'describe', '--tags', f'{tag_list}'])
+        .decode('utf-8')
+        .strip("\n")[1:]
+    )
+
+
+def if_tag_exists(version):
+    return subprocess.check_output(
+        ['git', 'tag', '-l', f'v{version.strip("v")}']
+    ).decode('utf-8')
+
+
+def get_next_alphabet(letter):
+    ascii_code = ord(letter)
+    next_ascii_code = ascii_code + 1
+    next_letter = chr(next_ascii_code)
+    return next_letter
+
+
+def get_suffix(input_version_string, is_latest_version):
+    number = ""
+    alphabet = ""
+    for char in input_version_string:
+        if char.isdigit():
+            number += char
+        else:
+            alphabet += char
+
+    if is_latest_version == "default":
+        return str(int(number) + 1)
+
+    return number + get_next_alphabet(alphabet) if alphabet != "" else number + 'a'
+
+
+def create_new_tag(current_version, is_latest_tag, mode):
+    current_version = current_version.split(".")
+
+    if is_latest_tag == "default":
+        if mode == "major":
+            current_version[0] = str(int(current_version[0]) + 1)
+            current_version[1] = '0'
+            current_version[2] = '0'
+        elif mode == "minor":
+            current_version[1] = str(int(current_version[1]) + 1)
+            current_version[2] = '0'
+        else:
+            current_version[2] = get_suffix(current_version[2], is_latest_tag)
+        new_version = ".".join(current_version)
+
+    else:
+        current_version[2] = get_suffix(current_version[2], is_latest_tag)
+        new_version = ".".join(current_version)
+        tag_already_exists = if_tag_exists(new_version)
+        if tag_already_exists:
+            raise ValueError(f"new tag {new_version} already exists")
+
+    return new_version
+
+
+if __name__ == "__main__":
+    parser = argparse.ArgumentParser("Increment a new version for release.")
+    parser.add_argument("--stage", help="tui, appr or live", required=True)
+    parser.add_argument("--based_on_version", help="tag", required=True)
+    parser.add_argument("--release_type", help="major, minor or patch", required=False)
+    args = parser.parse_args()
+
+    stage = args.stage
+    based_on_version = args.based_on_version
+    release_type = args.release_type
+
+    if stage == "tui":
+        if based_on_version == "default":
+            latest_tag = get_latest_tag()
+            print(f"{create_new_tag(latest_tag, based_on_version, release_type)}")
+        else:
+            if release_type in ("major", "minor"):
+                raise ValueError(
+                    "Making major or minor release based on an old version is not allowed."
+                )
+
+            tag_exists = if_tag_exists(based_on_version)
+            if not tag_exists:
+                raise ValueError(f"tag v{based_on_version} does not exist.")
+            print(f"{create_new_tag(based_on_version, based_on_version, release_type)}")
+
+    else:
+        if based_on_version == "default":
+            raise ValueError(
+                "To deploy to APPROVAL or LIVE stage, please specify a known version that was deployed to TUI before."
+            )
+
+        tag_exists = if_tag_exists(based_on_version)
+        if not tag_exists:
+            raise ValueError(f"tag v{based_on_version} does not exist.")
+        print(f"{based_on_version}")