Tax Calculator

The calculations provided is only for the new tax regime and does not include old tax regime

Results:

New Regime Tax (2024 - 2025): ₹ 0

New Regime Tax (2025 - 2026): ₹ 0

Savings: ₹ 0

What is Income Tax Calculator?

The government collects income tax on a person's income. A person, Hindu Undivided Family (HUF), business, cooperative societies, trusts and other entities are all required to abide by the income tax rules. Tax slabs are used to determine the income tax of a person on the basis of their age and income. The income of a person after subtracting the exemptions, deductions, and rebates becomes their taxable income. The deduction, exemptions and other rules may be revised on the basis of the Union Budget presented for that financial year. Now, to make calculations easier for all, Income Tax Calculator can be used to determine your taxable income. The Income Tax calculator is an easy-to-use tool which helps you figure out the income tax which you are required to pay for the financial year. To use this application for FY 2025-26, simply enter your age, residential status, income, investments in tax-saving instruments, and income from other sources. With the help of the Income Tax calculator, you can find out how much tax you owe after subtracting the tax exemptions, deductions and rebates.

Old Tax Regime

From To Tax Rate
₹0 - ₹2,50,000 0%
₹2,50,001 - ₹5,00,000 5%
₹5,00,001 - ₹10,00,000 20%
Above ₹10,00,000 30%

Whether the new tax regime or the old tax regime is more beneficial depends on your individual financial situation, as each has its pros and cons. Here’s a comparison to help you decide:

Old Tax Regime:

  • Deductions and exemptions available: Under the old regime, you can claim various deductions and exemptions, like:

    • Section 80C (investments in PPF, ELSS, etc.)
    • Section 80D (insurance premiums)
    • House Rent Allowance (HRA)
    • Standard Deduction of ₹50,000
    • Home loan interest deduction, and more.
  • Higher tax-saving opportunities: If you have significant expenses or investments that qualify for deductions, the old regime might be better as it allows you to reduce your taxable income.

  • Potentially lower tax: If your deductions and exemptions bring your taxable income down considerably, you could end up paying less tax than under the new regime.

New Tax Regime:

  • No deductions/exemptions: The biggest difference is that under the new tax regime, you cannot claim most of the deductions and exemptions available under the old regime.

  • Lower tax rates: The new tax regime has lower tax slabs compared to the old one, which can benefit those who don’t have enough tax-saving investments or expenses to benefit from the old regime's deductions.

  • Simplicity: The new regime is simpler because you don’t have to keep track of all the deductions and exemptions. This can be helpful if you don’t want to deal with complicated tax planning.

Which is better?

  • If you don’t have significant deductions (like insurance premiums, home loan interest, etc.), the new tax regime might be better since it has lower tax rates.
  • If you have high deductions and exemptions that lower your taxable income, the old tax regime could be more beneficial.