New Income Tax Calculator: Every citizen of India has to pay a part of his income to the government in the form of tax. In such a situation, if you are also a taxpayer, then today’s news is very useful for you. Because today we are going to tell you that the Income Tax Department has launched a new easy tax calculator. Let us know about this new tax calculator in detail in the news.
New Income Tax Calculator: A big update has been issued by the Income Tax Department regarding taxpayers, which is very useful for taxpayers. Through this update, it has been told that the Income Tax Department has launched a new tax calculator. This tax calculator has been made available on the official website of the Income Tax Department with the intention of helping the taxpayers. Taxpayers can assess their savings under the New Tax Regime for the financial years 2024-25 and 2025-26. Let us tell you that in Budget 2025, Finance Minister Nirmala Sitharaman has announced to make annual income up to Rs 12 lakh tax free.
With the help of this new tax calculator provided by the Income Tax Department, taxpayers can search their tax liability in the old and new tax regime by entering their income and eligible deductions.
The most important thing is that the government is working hard to make the new tax regime the default system. After making income up to Rs 12 lakh tax free in Budget 2025, the New Tax Regime has now become much more attractive than the Old Tax Regime. Apart from this, the basic exemption limit in the new tax regime has also been increased from Rs 3 lakh to Rs 4 lakh.
This is how the new tax calculator works: How the Calculator Works
Taxpayers can access the Income Tax Calculator on the Income Tax Department website and use it to determine which regime is more beneficial. Users have to select their residential status and enter their taxable income (excluding special rate income such as capital gains). The tool then provides a comparison of their total tax liability under the current tax rates for FY 2024-25 and the revised rates under the Finance Bill 2025 (FY 2025-26).
This calculator highlights the net tax savings under the new tax regime, giving taxpayers a clear picture of how much they can save from April 1, 2025 due to the revised income tax slabs.
Let us tell you that the new tax regime, which was introduced in the financial year 2020-21. Many amendments have been made in it to make it more attractive. Some of the latest features include:
Default Tax Regime
The new tax regime offers a simplified structure and remains a default option.
Revised Basic Exemption Limit
From April 1, 2025, the basic exemption limit will increase from Rs 3 lakh to Rs 4 lakh.
Higher Tax Rebate
At present, a tax exemption of Rs 25,000 is available under Section 87A for individuals with income up to Rs 7 lakh. From FY 2025-26, this exemption will increase to Rs 60,000, ensuring zero tax liability on income up to Rs 12 lakh.
Limited Deductions
Unlike the old tax regime, the new tax regime has limited deductions. However, salaried taxpayers can still claim standard deduction up to Rs 75,000. In addition, a maximum deduction of 14 per cent of the basic salary can be claimed by the company in the Tier-1 NPS account under Section 80CCD (2). This deduction will take place in the financial year 2025-26.
With these changes, the government aims to simplify tax filing and encourage more and more taxpayers to adopt the new tax regime. The income tax calculator will prove to be an important tool in helping individuals make informed financial decisions before April 1, 2025, the implementation date.
