The Union Budget 2025 has been announced by Finance Minister Nirmala Sitharaman. The new Income Tax Regime comes with significant changes to offer benefits to the Tax payers.
A new Income Tax Regime has been presented which will be applicable for income earned in Financial Year 25-26 (FY 25-26). This means that the new tax regime will be applicable for income earned from 1 April 2025 to 31 March 2026.
New Income Tax Regime Calculator India
The New Income Tax Regime Slabs under the new regime are as follows –
| Slab | Rate |
| Upto 4 Lacs | NIL |
| 4 Lacs - 8 Lacs | 5 % |
| 8 Lacs - 12 Lacs | 10 % |
| 12 Lacs - 16 Lacs | 15 % |
| 16 Lacs - 20 Lacs | 20 % |
| 20 Lacs - 24 Lacs | 25 % |
| Above 24 Lacs | 30 % |
Important Points to Consider in the New Tax Regime –
- Rebate under section 87A has been increased to 12 Lacs. This means that no income tax is applicable for an annual income less than or equal to 12 Lacs.
- Standard Deductions have been increased to Rs 75,000.
- This means for a Salaried Employee is non taxable if his income is less than 12.75 Lacs/annum
What is Income Tax Calculator?
The Income tax calculator is an online tool that helps you estimate your taxes based on your income. However, it calculates your tax liability for the assessment year.
How to use the Income tax calculator to calculcate estimated income tax for Financial Year 2025-26 ( for the income generated from 1 April 2025 - 31 March 2026)?
These are the steps to use the tax calculator -:
- Enter Income from Salary. (Example if the salary is 5 Lacs enter 500000 )
- Enter Income from Other Sources.
- Click on Calculate Income Tax button below.
- Your estimated income tax for FY 25-26 will be calculated.
- Note - Exemptions under 80-C (Term Insurance policies, Public provident fund, Pension fund), 80-D (Medical Insurance), 80-E (Education loan), 80-CCD (National Pension Scheme), 80-TTA (Interest on Saving Account Deposit), 80-G (Donations), 80-EEA (Interest on Housing Loan) are not applicable as per the new tax regime FY 2023-24.
Disclaimer:The above calculator is only to enable public to have a quick and an easy access to basic tax calculation and does not purport to give correct tax calculation in all circumstances. It is advised that for filing of returns the exact calculation may be made as per the provisions contained in the relevant Acts, Rules etc. For more information visit income tax portal.