Income Tax Calculator: The income tax department has launched a simple tool to help taxpayers compare taxes under the New Tax Regime for FY 2024-25 and FY 2025-26 (after budget proposal). The tool enables individuals to assess which tax regime is more beneficial based on their income and deductions.
You can access the official Income Tax Calculator here: Income Tax Calculator FY 2025-26.
Read More:- TDS, TCS Changes In Budget 2025: Explaining Tweaks In Withholding Taxes, Personal Income Tax
How to Use the Income Tax Calculator? A Step-By-Step Guide
Step 1. Visit the Calculator: Visit the Income Tax Calculator.
Step 2. First column ‘Tax Payer’ will be already filled ‘Individual’. Ignore it.
Step 3: Select your residential status. Select ‘Resident’ if you reside in India.
Step 4: Enter your annual taxable income (other than special rate income).
Step 5: Click anywhere outside.
Now, your total tax will appear for this year and next year, along with the net tax savings. Importantly, this is only for the new tax regime as per slabs announced under the Union Budget 2025-26.
Read More:- New Income Tax Bill 2025: Key Changes, How Does It Affect You?
Income Tax Calculator For Old Tax Regime
As the old tax regime remains the same in the Budget 2025-26, taxpayers can check their old tax regime in this old income tax calculator:
Step 1: Visit income tax portal for the existing income tax calculator.
Step 2: Input your salary, rental income, business income, and other earnings. Include deductions under Section 80C, 80D, and other eligible tax benefits.
The tool instantly compares and shows your tax payable under both regimes for the current financial year 2024-25. Refer to the old tax regime column for the total tax liability for the next financial year 2025-26 as it remains the same.
Budget 2025: Income Tax Slabs Under NTR Vs OTR for FY2025-26
The Union Budget 2025-26 has rejigged the new tax regime (NTR) in order to provide relief to the middle class worth Rs 1 lakh crore, while maintaining the status quo on the old tax regime (OTR). The Budget has exempted income tax on annual income up to Rs 12 lakh (from Rs 7 lakh earlier) benefitting over one crore taxpayers in the country and has reduced tax burden from others. It has been done by hiking the rebate and revamping slabs.
Read More:- New Income Tax Bill May Eliminate Need For Budget For Tax Reliefs: Report
However, the old tax regimes remains unchanged.
Under the new regime, the income tax slabs announced in the latest Union Budget 2025-26 are:
Income up to Rs 4,00,000: Nil
Income from Rs 4,00,001 to Rs 8,00,000: 5%
Income from Rs 8,00,001 to Rs 12,00,000: 10%
Income from Rs 12,00,001 to Rs 16,00,000: 15%
Income from Rs 16,00,001 to Rs 20,00,000: 20%
Income from Rs 20,00,000 to Rs 24,00,000: 25%
Income above Rs 24,00,000: 30%.
Importantly, those earning up to Rs 12.75 lakh a year (including a standard deduction of Rs 75,000) will have to pay zero tax during FY25-26.
Read More:- New Income Tax Bill Likely To Get Cabinet Approval On Friday: Report
Tax Rates Under The Old Tax Regime
Under the old regime, income tax rates continue to remain the same:
Income up to Rs 2,50,000: Nil
Income from Rs 2,50,001 to Rs 5,00,000: 5%
Income from Rs 5,00,001 to Rs 10,00,000: 20%
Income above Rs 10,00,000: 30%
For senior citizens aged 60-80 years, the basic exemption limit is Rs 3,00,000. For super senior citizens (above 80 years), it is Rs 5,00,000.
The Old Tax Regime allows deductions under various sections, such as:
Read More:- After Bumper Tax Relief, India’s Middle Class Now Gets Easier EMI & Cheaper Loans
Section 80C: Up to Rs 1,50,000 for investments like PPF, ELSS, and LIC premiums.
Section 80D: Health insurance premiums.
Section 24(b): Interest on home loan up to Rs 2,00,000.
Other exemptions like HRA and LTA.
