New tax regime tax calculator: Income Tax dept launches tax calculator to help taxpayers calculate their tax savings The initiative aims to facilitate informed financial decisions with a user-friendly assessment tool
In order to help taxpayers evaluate their tax savings under the New Tax Regime for the fiscal years 2024–2025 and 2025–2026 (post-budget 2025 proposals), the Income Tax Department has launched an easy-to-use facility on its website. Individuals can use this calculator to assess which tax regime is more advantageous by entering their income and deductions.#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;} An individual can access the calculator on the income tax website by clicking here.
The government has been encouraging the adoption of the new tax regime by making it the default and potentially making it more attractive than the old tax regime. Budget 2025 has announced no tax if income does not exceed Rs 12 lakh in financial year. Further, the income tax slabs under the new tax regime has revised to provide more tax savings to the taxpayers opting for new tax regime.
Also read: New income tax slabs for FY 2025-26: 30% tax now starts at Rs 24 lakh, income up to Rs 20 lakh to be taxed at 20% in Budget 2025
How to use income tax calculator available on the income tax department’s website
Income tax calculator provides tax comparison under the new tax regime based on the proposals announced as per Finance Bill 2025. This helps taxpayers to ascertain how much tax they will save from April 1, 2025 due to new income tax slabs.
Artificial Intelligence(AI)
Java Programming with ChatGPT: Learn using Generative AI
By - Metla Sudha Sekhar, IT Specialist and Developer
Artificial Intelligence(AI)
Basics of Generative AI: Unveiling Tomorrows Innovations
By - Metla Sudha Sekhar, IT Specialist and Developer
Artificial Intelligence(AI)
Generative AI for Dynamic Java Web Applications with ChatGPT
By - Metla Sudha Sekhar, IT Specialist and Developer
Artificial Intelligence(AI)
Mastering C++ Fundamentals with Generative AI: A Hands-On
By - Metla Sudha Sekhar, IT Specialist and Developer
Artificial Intelligence(AI)
Master in Python Language Quickly Using the ChatGPT Open AI
By - Metla Sudha Sekhar, IT Specialist and Developer
Office Productivity
Zero to Hero in Microsoft Excel: Complete Excel guide 2024
By - Metla Sudha Sekhar, IT Specialist and Developer
Marketing
Performance Marketing for eCommerce Brands
By - Zafer Mukeri, Founder- Inara Marketers
Finance
A2Z Of Money
By - elearnmarkets, Financial Education by StockEdge
Astrology
Vastu Shastra Course
By - Sachenkumar Rai, Vastu Shashtri
Marketing
Modern Marketing Masterclass by Seth Godin
By - Seth Godin, Former dot com Business Executive and Best Selling Author
Data Science
SQL for Data Science along with Data Analytics and Data Visualization
By - Metla Sudha Sekhar, IT Specialist and Developer
Strategy
Succession Planning Masterclass
By - Nigel Penny, Global Strategy Advisor: NSP Strategy Facilitation Ltd.
Web Development
A Comprehensive ASP.NET Core MVC 6 Project Guide for 2024
By - Metla Sudha Sekhar, IT Specialist and Developer
Artificial Intelligence(AI)
AI and Analytics based Business Strategy
By - Tanusree De, Managing Director- Accenture Technology Lead, Trustworthy AI Center of Excellence: ATCI
Marketing
Digital Marketing Masterclass by Pam Moore
By - Pam Moore, Digital Transformation and Social Media Expert
Office Productivity
Mastering Microsoft Office: Word, Excel, PowerPoint, and 365
By - Metla Sudha Sekhar, IT Specialist and Developer
Marketing
Digital marketing - Wordpress Website Development
By - Shraddha Somani, Digital Marketing Trainer, Consultant, Strategiest and Subject Matter expert
Web Development
Mastering Full Stack Development: From Frontend to Backend Excellence
By - Metla Sudha Sekhar, IT Specialist and Developer
Finance
Financial Literacy i.e Lets Crack the Billionaire Code
By - CA Rahul Gupta, CA with 10+ years of experience and Accounting Educator
Artificial Intelligence(AI)
AI-Powered Python Mastery with Tabnine: Boost Your Coding Skills
By - Metla Sudha Sekhar, IT Specialist and Developer
When using the income tax calculator, simply select your residential status and enter your taxable income (excluding special rate income such as capital gains). The calculator will then generate a detailed comparison, showing the total tax liability under the existing rates for FY 2024-25 (including surcharge and health & education cess) alongside the total tax payable under the Finance Bill 2025 (FY 2025-26). Additionally, it highlights the net savings you can enjoy under the new tax regime, helping you make an informed financial decision effortlessly.
Say for example if your income is 15 lakh, it displays how much you will benefit from existing rates.
Income tax slabs under the new tax regime
Here are the income tax slabs under the new tax regime from April 1, 2025:0-4 lakh rupees- Nil4-8 lakh rupees-5 per cent8-12 lakh rupees- 10 per cent12-16 lakh rupees-15 per cent16-20 lakh rupees- 20 per cent20- 24 lakh rupees- 25 per centAbove 24 lakh rupees- 30 per cent
Latest features of the new tax regime
The new tax regime is the default tax regime. Currently, this tax regime offers a basic exemption limit of Rs 3 lakh to all taxpayers, irrespective of their age. This means that no tax is payable if gross income in a financial year does not exceed Rs 3 lakh. This will be hiked to Rs 4 lakh from April 1, 2025. This is because Budget 2025 has hiked the income tax basic exemption limit to Rs 4 lakh by revising the income tax slabs.Unlike the old tax regime, the new tax regime offers limited deductions to the taxpayers.
Currently, the new tax regime offers a tax rebate of Rs 25,000 under Section 87A. The tax rebate is applicable if the net taxable income does not exceed Rs 7 lakh. The new tax regime offers marginal tax relief for small taxpayers whose incomes exceed Rs 7 lakh by a small amount. The tax rebate will be hiked to Rs 60,000 from April 1, 2025. There will be zero tax payable on incomes up to Rs 12 lakh from FY 2025-26.
Deductions available under new tax regime
The new tax regime was introduced in FY 2020-21 to offer lower tax rates to taxpayers, however, without any common deductions and exemptions. Over the years, to enhance the appeal, the government has introduced and hiked the limits of deductions available under the new tax regime.Current income tax rules allow a salaried taxpayer to claim the standard deduction and employer contribution to the NPS account Tier-1. The standard deduction of Rs 75,000 can be claimed from the gross salary income. On the other hand, an employer's contribution to the Tier-1 NPS account is available under Section 80CCD (2). A maximum deduction of 14% of the basic salary is allowed as a deduction from gross taxable income. This will continue to remain the same for upcoming financial year 2025-26
#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;}
This story originally appeared on: India Times - Author:Faqs of Insurances
