Income Tax Bill 2025: New Tax Regime vs Old Tax Regime and Tax Calculator for FY 2025-26
The government has introduced the Income Tax Bill, 2025, in Parliament with a motive to make income tax legislation simple without any policy change. The bill aims to introduce more clear and ease of understanding for taxpayers. Some big changes have been brought with the Union Budget 2025-26 in the new tax regime, but the old tax regime is still the same.
Income Tax Calculator for Year 2025-26
To enable taxpayers to compare their tax burden under the new and previous tax regimes, the Income Tax Department has introduced an income tax calculator. Taxpayer can check their tax labilities via this income tax calculator under both new tax regimes for the FY 2024-25 and 2025-2026 (after the proposal of new budget).
How to Use this Income Tax Calculator?
There are following steps given to check tax liability under tax new regime:
1. Firstly you have to visit the income tax calculator on the official website.
2. Here, the column of ‘Tax Payer’ will be already filled as ‘Individual’.
3. After that, Choose your residential status (If live in India select ‘resident’).
4. Then, enter the taxable income for the year (excluding special rate income).
5. Now, click outside the field to get the total tax amount for the current and next financial year.
Your entire tax for this year and next, as well as any net tax savings, will now be displayed. Importantly, this applies solely to the new tax regime as outlined in the Union Budget 2025-26.
We can compare taxes under the new tax regime by the help of this calculator.
Old Tax Regime Tax Calculator
No changes are made in the old tax system, taxpayers can easily calculate their tax using the old tax calculator by following these steps:
1. First, go to the income tax portal to get access of the calculator.
2. Now put information like salary, rent received, business income, and other receipts.
3. Add deductions from various like Section 80C, 80D, and other applicable benefits.
Now you’ll get will the tax paid under both schemes for the year 2024-25 and the tax liability under the old tax regime for 2025-26 by the help of this calculator.
New vs Old Tax Regime: Tax Slabs for FY 2025-26
The Union Budget 2025-26 has brought many changes in the new tax regime to favour and provide relief middle-class taxpayers. However, no changes was done in the old tax regime. The new tax regime now offers no tax on income up to Rs.12 lakh, up from the earlier Rs.7 lakh. This will benefit more than one crore taxpayers in the country.
New Tax Regime Slabs for FY 2025-26
In the new tax regime, those who earn up to Rs.12.75 lakh per year, including a standard deduction of Rs.75,000, will not have to pay any income tax in FY 2025-26.
Old Tax Regime Slabs for FY 2025-26
The old tax regime stays the same with the same tax slabs:
For senior citizens between 60 and 80 years, basic exemption limit is Rs. 3,00,000, whereas for super senior citizens above the age of 80 years it is Rs. 5,00,000.
The old tax regime provides various deductions and exemptions under multiple sections. Theses deductions and exemptions are:
Section 80C: This section provides deduction up to Rs. 1,50,000 for investments like PPF, ELSS, and LIC premiums.
Section 24(b): This section offers deduction up to Rs. 2,00,000 for home loan interest.
Section 80D: The deduction provided under this section is for health insurance premiums.
Other Exemptions: These include House Rent Allowance (HRA) and Leave Travel Allowance (LTA) also included in the old tax regime.
The Union Budget 2025 has been redesigned the the new tax regime to provide more tax relief to taxpayers specially who are middle-class. But, there has been no changes in the old tax regime.
Taxpayers are now can use the income tax calculator to compare their tax liability under both tax regimes and make sound financial decisions for the years 2024-25 and 2025-26.
