Income tax calculator: Almost all taxpayers in the country are busy filing their ITR returns. All taxpayers have to file their returns by September 15. However, those who need audit can file their returns by September 15. Many changes have been made in the income tax slabs and compliance rules in the last 1 year. Due to which people are not able to understand how much tax they actually have to pay. Online income tax calculators (like the one shared on the Income Tax website) can prove to be especially helpful for you in such cases.
What has changed in 2025?
The budget announced by Finance Minister Nirmala Sitharaman in February 2025 has provided several reliefs for the middle-income group. The basic exemption limit has now been increased to Rs 4 lakh, while the exemption on taxable income up to Rs 12 lakh under Section 87A has been increased to Rs 60,000 (both under the new tax regime). The government had also announced zero income tax on income up to Rs 12 lakh under the new tax regime.
New Tax Regime – Changes in tax brackets too
Rs 4 lakh to Rs 8 lakh – 5%
Rs 8 lakh to Rs 12 lakh – 10%
Rs 12 lakh to Rs 16 lakh – 15%
Rs 6 lakh to Rs 20 lakh – 20%
Rs 20 lakh to Rs 24 lakh – 25% tax is levied.
Anyone earning more than Rs 24 lakh is taxed at a one-time income tax rate of 30%.
How to use income tax calculator?
Many financial websites, including the official Income Tax Department website, provide a calculator – which helps taxpayers understand their total liabilities within minutes. Using the drop-down menu, all the required details have to be shared including AY, type of taxpayer, age and residential status. Taxpayers also have to provide their net taxable income and whether they are exiting the new tax regime. The website automatically calculates the details. This includes the tax payable after exemption under 87A, the total tax liability, and the cess and surcharges added to it.
Know how much tax you have to pay
– First of all open the official website of Income Tax https://www.incometax.gov.in/.
– Here in the search bar, search for ‘Tax Calculator’ or click here for direct link – Direct Link
– Use the dropdown menu to select the financial year for which you want to calculate the tax.
– For the current submission, it will be 2024-25.
– Select your taxpayer category.
– This will be different for all salaried taxpayers, pensioners and people with income from interest or house property etc.
– People earning from capital gains on stocks or mutual funds will also come under the ‘Individual’ category.
– Select your respective age group and residential status.
– Enter your net taxable income.
– First of all, deduct all the exemptions and deductions you get from your total income. Tax has to be calculated on the amount that remains.
