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The Income Tax Department has introduced a simple tool to help compare taxes under the new tax regime for FY 2024-25 and FY 2025-26 (after budget proposal).
Income tax calculator.
Income tax calculator: Even the new Income Tax Bill, as 2025, has been introduced in Parliament, it attempts to simplify the provisions of Income Tax law for better clarity and readability. There will be no policy change in the bill compared to the Old Income Tax Act, 1961. Here is the income tax calculator for the financial year 2024-25 and FY 2025-25
The Income Tax Department has introduced a simple tool to help compare taxes under the new tax regime for FY 2024-25 and FY 2025-26 (after budget proposal). You can use the official income tax calculator here: Income Tax Calculator FY 2025-26.
How to use income tax calculator? A step-by-step guide
step 1. Go to the calculator: Go to the Income Tax Calculator.
step 2. The first column ‘Tax Pair’ will already be filled ‘personal’. ignore it.
step 3: Select your residential status. If you live in India, select a ‘resident’.
step 4: Enter your annual taxable income (in addition to special rate income).
Step 5: Click anywhere outside.
Now, your total tax will appear with pure tax savings for this year and next year. Importantly, this is only for the new tax regime as the Union Budget is according to the slab declared under 2025-26.
Income tax calculator for old tax rule
As the old tax governance budget is the same in 2025-26, taxpayers can check their old tax regime in this old Income Tax Calculator:
step 1: Go to the Income Tax Portal for the current Income Tax Calculator.
step 2: Input your salary, rental income, business income and other earnings. Include deduction under section 80C, 80D and other qualified tax benefits.
The device immediately compares and shows your tax payable under both regime for the current financial year 2024-25. For the next financial year 2025-26, refer to the old tax regime column for total tax liability as it is the same.
Budget 2025: Income tax slab under NTR vs OTR for FY2025-26
The Union Budget 2025-26 has rebuilt the new tax regime (NTR) to provide relief to the middle class of Rs 1 lakh crore by maintaining the status quo on the old tax regime (OTR). The budget has given income tax on annual income up to Rs 12 lakh (before Rs 7 lakh), which has benefited more than one crore taxpayers in the country and has reduced the tax burden from others. This is done by hiking and rebuilding slabs.
However, old tax regime is unchanged.
Under the new regime, the latest Union Budget is the Income Tax Slabs announced in 2025-26:
- Income up to Rs 4,00,000: Zero
- Income ranging from Rs 4,00,001 to Rs 8,00,000: 5%
- Income ranging from Rs 8,00,001 to Rs 12,00,000: 10%
- Income ranging from Rs 12,00,001 to Rs 16,00,000: 15%
- Income ranging from Rs 16,00,001 to Rs 20,00,000: 20%
- Income ranging from Rs 20,00,000 to Rs 24,00,000: 25%
- Income above Rs 24,00,000: 30%.
Importantly, those earning Rs 12.75 lakh per year (including a standard deduction of Rs 75,000) will have to pay zero tax during FY 25-26.
Tax rates under old tax regime
Under the old regime, income tax rates remain the same:
- Income up to Rs 2,50,000: Zero
- Income ranging from Rs 2,50,001 to Rs 5,00,000: 5%
- Income ranging from Rs 5,00,001 to Rs 10,00,000: 20%
- Income above Rs 10,00,000: 30%
For senior citizens aged 60–80, the original exemption limit is Rs 3,00,000. For super senior citizens (over 80 years), it is Rs 5,00,000.
Old tax regime allows deduction under different classes, such as:
Section 80C: Up to Rs 1,50,000 for investment like PPF, ELSS and LIC premium.
Section 80D: Health Insurance Premium.
Section 24 (B): Interest on home loan up to Rs 2,00,000.
Other discounts like HRA and LTA.
