Latest Income Tax Comparison Calculator in India 2025

Use the below Income Tax Comparison Calculator in India 2025 to easily compare tax payable per tax regime.

India Income Tax Calculator

Optional Deductions and Exemptions

Income Tax Comparison Calculator in India 2025: Key Points

Here’s a comparative overview of the key differences between the Old Tax Regime and the New Tax Regime for the Financial Years (FY) 2024-25 and 2025-26:

AspectOld Tax RegimeNew Tax Regime (FY 2024-25)New Tax Regime (FY 2025-26)
Basic Exemption Limit– ₹2.5 lakh for individuals below 60 years
– ₹3 lakh for senior citizens (60-80 years)
– ₹5 lakh for super senior citizens (above 80 years)
₹3 lakh for all individuals, regardless of age₹4 lakh for all individuals, regardless of age
Standard Deduction₹50,000 for salaried individuals and pensioners₹75,000 for salaried individuals and pensioners₹75,000 for salaried individuals and pensioners
Tax Rebate (Section 87A)Available for taxable income up to ₹5 lakh, resulting in zero tax liabilityAvailable for taxable income up to ₹7 lakh, resulting in zero tax liabilityAvailable for taxable income up to ₹12 lakh, resulting in zero tax liability
Tax Slabs and Rates– Up to ₹2.5 lakh: Nil
– ₹2.5 lakh – ₹5 lakh: 5%
– ₹5 lakh – ₹10 lakh: 20%
– Above ₹10 lakh: 30%
– Up to ₹3 lakh: Nil
– ₹3 lakh – ₹7 lakh: 5%
– ₹7 lakh – ₹10 lakh: 10%
– ₹10 lakh – ₹12 lakh: 15%
– ₹12 lakh – ₹15 lakh: 20%
– Above ₹15 lakh: 30%
– Up to ₹4 lakh: Nil
– ₹4 lakh – ₹8 lakh: 5%
– ₹8 lakh – ₹12 lakh: 10%
– ₹12 lakh – ₹16 lakh: 15%
– ₹16 lakh – ₹20 lakh: 20%
– ₹20 lakh – ₹24 lakh: 25%
– Above ₹24 lakh: 30%
Deductions and ExemptionsAllows various deductions and exemptions such as HRA, LTA, and investments under Section 80CDoes not allow most deductions and exemptionsDoes not allow most deductions and exemptions

Key Takeaways:

  • Old Tax Regime: Offers multiple deductions and exemptions, making it beneficial for individuals who have significant investments and expenses that qualify for tax deductions.
  • New Tax Regime (FY 2024-25): Introduced with lower tax rates and a higher standard deduction but removes most exemptions and deductions. Suitable for taxpayers who prefer a simplified tax structure without the need to invest in specific instruments for tax benefits.
  • New Tax Regime (FY 2025-26): Further enhances the basic exemption limit and adjusts tax slabs to reduce the tax burden on middle-income earners, continuing the trend towards simplification and increased disposable income.

When choosing between the old and new tax regimes, it’s essential to evaluate your financial situation, including eligible deductions and exemptions, to determine which regime offers the most tax benefit.

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