Income Tax Calculator: Here's A Step-By-Step Guide To Calculate Your Taxes

Income Tax Calculator: In the Union Budget 2025, Finance Minister Nirmala Sitharaman introduced new tax rates under the revised tax regime, offering relief to taxpayers across various income categories.

New Tax Slabs Under the New Regime:

• 0 to ₹4 lakh: Nil (No tax)
• ₹4 lakh to ₹8 lakh: 5%
• ₹8 lakh to ₹12 lakh: 10%
• ₹12 lakh to ₹16 lakh: 15%
• ₹16 lakh to ₹20 lakh: 20%
• ₹20 lakh to ₹24 lakh: 25%
• Above ₹24 lakh: 30%

But, how to calculate your income tax online?

To calculate your income tax accurately, it's important to include all of your income sources:

• Salary from employment
• Rental income from property
• Deductions for home loan interest
• Profits earned from the sale of stocks, real estate, or other assets
• Income generated from freelance work or owning a business
• Interest earnings from savings accounts, fixed deposits, and bonds

By factoring in all of these elements, you can gain a clear understanding of your tax liability and plan your finances effectively.

Tax Saving Across Income Categories

• For ₹12,75,000 Income: Your tax outgo will be zero, compared to ₹80,000 under the previous regime.
• For ₹15,75,000 Income: Your tax outgo will be ₹1.05 lakh, a saving of ₹35,000 from the earlier ₹1.4 lakh.
• For ₹25,75,000 Income: Your tax outgo will be ₹3.3 lakh, a saving of ₹1.10 lakh from the earlier ₹4.4 lakh.

Key Highlights:

• Up to ₹12 lakh: Taxpayers with income up to ₹12 lakh will receive a tax rebate, reducing their tax liability to zero. This includes a standard deduction of ₹75,000 for salaried individuals.
• For ₹12 lakh Income: You will save ₹80,000 in taxes (100% of the tax payable under the previous regime).
• For ₹18 lakh Income: The tax benefit will be ₹70,000, which accounts for 30% of the tax payable as per the earlier tax rates.
• For ₹25 lakh Income: You will get a tax benefit of ₹1.10 lakh, which is 25% of the tax payable according to the old rates.