Income Tax Regime- FY 2025-2026
Updated as per latest budget on 2025 - 1st Feb , 2025.
Financial year
Individuals have the option to file taxes under either the old or new tax regimes, with each offering different regulations and deductions. To accurately calculate your tax liabilities, you can use our income tax calculator, which is a cost-effective alternative to hiring a professional tax consultant. This tool not only helps you understand your tax obligations but also simplifies the process of comparing both regimes.
Explore how the tax calculator works, their benefits, and how they can streamline your tax planning for smarter financial decisions.
Budget 2025 updates:
- No income tax for income upto Rs. 12 Lakhs. This is because of rebate applicable to new regime, which is Rs. 60,000
- Modified slab rates for new regime are as follows for FY 2025-2026 (AY 2026-2027)
| Income Tax Slabs | Tax Rate |
|---|---|
|
Upto Rs. 4,00,000 |
NIll |
|
Rs. 4,00,001 – Rs. 8,00,000 |
5% |
|
Rs. 8,00,001 – Rs. 12,00,000 |
10% |
|
Rs. 12,00,001 – Rs. 16,00,000 |
15% |
|
Rs. 16,00,001 – Rs. 20,00,000 |
20% |
|
Rs. 20,00,001 – Rs. 24,00,000 |
25% |
|
Above Rs. 24,00,000 |
30% |
What is the Income Tax Calculator?
The Income tax calculator is an easy-to-use online tool that helps you calculate your tax liability based on your income details. It also gives you a comparison of tax liability between the old and new tax regimes to help you decide which is more beneficial for you. We have updated our tool in line with the income tax changes proposed in the Union Budget 2025 to help you estimate your tax liability for better financial planning.
How to Use the Income Tax Calculator for FY 2024-25 (AY 2025-26) and FY 2025-26 (AY 2026-27)?
Following are the steps to use the tax calculator:
Step 1: Choose the financial year for which you want your taxes to be calculated.
Step 2: Click on ‘Continue’
Step 3: Enter your salary, i.e. salary before deducting various exemptions such as HRA and so on. If LTA deduction is applicable to you, reduce it from salary and enter the net figure. There is a field available for exempt allowances. Enter the particulars if it applies to your case.
Step 4: Along with taxable salary, you must enter other details such as interest income, rental income, interest paid on home loan for rented, and interest paid on loan for self-occupied property.
Step 5: For Income from Digital Assets, enter the net income (Sale consideration (-) Cost of Acquisition).
Step 6: Click on ‘Continue’ again.
Step 7: You can also enter your tax-saving investments under sections 80C, 80D, 80G, 80E, and 80TTA, if applicable to your case.
Step 8: Click on ‘Calculate’ to calculate your tax liability. You will be able to compare the old and new tax regimes.