Income Tax Calculator: During Budget 2025, Union Finance Minister Nirmala Sitharaman announced new tax rates, offering relief to the salaried taxpayers. With a higher tax rebate of upto ₹60,000 against ₹25,000 earlier and a higher standard deduction of 75,000, now taxpayers earning upto ₹12 lakh need not pay any income tax.
This triggers an old debate between old tax regime and new tax regime. However, if you are also confused between which tax regime to opt for, all you need to do is to enter all your earnings into the calculator, which will tell you the exact tax.
You can assess which regime leads to what amount of tax – a comparison that can help you choose one regime over the other.
First of all, you need to visit income tax department's website and click on tax tools.
Now, there are three options of calculators: Tax Calculator: Old vs New Regime, Tax Calculator and Income and Tax calculator.
Second: To compare income between two regimes (old and new), you need to choose the first calculator i.e., Tax Calculator: Old vs New Regime.
Third: Now you need to enter your residential status and whether you are individual or association of persons, etc. Then you have to enter whether your age is lower than or more than 60.
Fourth: After these basic details are entered, you need to start entering the income details. These details are as follows:
A. Gross Salary (after deducting allowances exempted under both regimes)
B. Amount deductible from gross salary (except standard deduction), which is not allowed under the new regime
C. Income other than Salary and Special Rate Income
D. Interest on Self Occupied House Property
E. Deductions/exemptions allowed under new tax regime
F. Deductions/exemptions under old tax regime
Once all the details are entered, you will see the tax calculation under both the systems (or known as regimes). If tax component under the old regime turns out to be more, you can opt out of the new regime, whereas if your total tax computation under the old regime is more, you do not need to do anything.
Since new tax regime is the default regime, the system will automatically file the return as per the new regime unless you opt out.
Meanwhile, you can also use the tax calculator given on Livemint portal.
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