ITR Filing 2025-26: The season for filing Income Tax Returns (ITR) is here, and taxpayers can make their tax planning smarter with the Income Tax Department’s tax calculator.
This tool helps you figure out whether the old tax regime or the new one is better for you.It’s a simple way to compare your tax liability and save more. Let’s dive into how it works and how you can use it.
What is the New Tax Calculator?
The tax calculator is available on the Income Tax Department’s official website. It allows taxpayers to compare their estimated income and deductions for the financial years 2024-25 and 2025-26.
This makes it easy to see which tax system will benefit you more and what your total tax liability will be.It’s a handy tool, especially with the changes in tax rules over the years. Whether you’re salaried or have other income sources, this calculator can guide you.
How to Use the Tax Calculator?
- First, visit the Income Tax Department’s website.
- Click on the ‘Income Tax Calculator’ section.
- Choose your residential status—whether you’re a resident, non-resident, or resident but not ordinarily resident.
- Next, enter your total taxable income, including salary, business income, and other sources, but exclude income taxed at special rates like capital gains.
- The calculator will then show you the tax calculations for both the old and new regimes, highlighting where you can save more.
- Finally, it will display your total tax liability, including surcharge and the 4% health and education cess.
ITR Filing : Keep These Important Points in Mind
- Under the old tax regime, there’s no tax on income up to ₹5 lakh, thanks to Section 87A.
- The new regime has increased this exemption to ₹7 lakh.
- In the Budget 2025, this limit has been raised to ₹12 lakh under the new regime.
The calculator includes all necessary charges, like surcharge and cess, to give you the final tax figure. It’s a must-use tool for anyone looking to optimize their tax savings this year.
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