Planning your taxes just got easier! The Income Tax Department has launched a new Income Tax Calculator to help taxpayers determine whether the new tax regime or the old tax regime is more beneficial.
Following Budget 2025, income up to ₹12 lakh is now tax-free, offering significant relief to taxpayers. But which tax regime should you choose? This tax calculator provides an easy way to compare and maximize your tax savings.
How the New Income Tax Calculator Works
The Income Tax Calculator helps you compare both tax regimes and shows your potential savings from April 1, 2025.
Steps to Use the Tax Calculator
1️⃣ Visit the Income Tax Department’s official website:
🔗 Tax Calculator Link
2️⃣ Enter your details:
✔ Residential status (where you live)
✔ Taxable income (salary, business income, etc.)
3️⃣ Get instant results:
🔹 Tax payable under the current financial year (FY 2024-25)
🔹 Tax payable under the new rules (FY 2025-26)
🔹 Net savings, helping you decide the best tax regime
For example, if your income is ₹15 lakh, the calculator will show you exactly how much tax you’ll save based on the new tax slabs.
New Income Tax Slabs (FY 2025-26)
Under the revised new tax regime, the income tax slabs are as follows:
| Income Range | Tax Rate |
|---|---|
| ₹4 - 8 lakh | 5% |
| ₹8 - 12 lakh | 10% |
| ₹12 - 16 lakh | 15% |
| ₹16 - 20 lakh | 20% |
| ₹20 - 24 lakh | 25% |
| Above ₹24 lakh | 30% |
✅ Income up to ₹12 lakh is now tax-free, which will benefit most middle-class taxpayers.
Key Deductions & Benefits in the New Tax Regime
Even though the new tax regime has fewer exemptions than the old one, some key deductions are still available:
✔ Standard Deduction: Salaried employees get a ₹75,000 standard deduction.
✔ NPS Deduction (Section 80CCD(2)):
- Employer’s contribution to Tier-1 NPS accounts is tax-free.
- Deduction up to 14% of basic salary for government employees.
✔ Lower tax rates: Even without traditional deductions, the lower tax rates can benefit many taxpayers.
Which Tax Regime is Better for You?
🤔 **If you claim many deductions (HRA, 80C, 80D, home loan interest, etc.), the old tax regime might still be better.
💡 If you have fewer deductions, the new tax regime with lower tax rates may help you save more.
Using the Income Tax Calculator, you can compare both options and choose the one that saves you the most money.
Final Thoughts: Plan Your Taxes Wisely
✔ The new Income Tax Calculator makes it easier to compare tax regimes.
✔ The new tax regime offers lower rates but fewer exemptions.
✔ The old tax regime is better if you claim multiple deductions.
✔ Use the tax calculator to see which option is best for you!
For more updates on tax policies and savings tips, stay tuned! 📢
