Income and Tax Calculator According to budget 2025
Income Tax Calculator (2025 Budget)
Income and Tax Calculator According to budget 2025
The Indian tax system offers two options for taxpayers: the old tax regime and the new tax regime. Here’s a comparison of the two, keeping in mind the latest 2025 budget changes.
Old Tax Regime
Tax Slabs
- Income up to Rs 2,50,000: No tax
- Rs 2,50,001 to Rs 5,00,000: 5%
- Rs 5,00,001 to Rs 10,00,000: 20%
- Above Rs 10,00,000: 30%
Key Features
✅ Deductions & Exemptions: Allows for various deductions under Section 80C, 80D, HRA, etc., significantly reducing taxable income.
✅ Higher Tax Rates: Generally, higher tax rates compared to the new regime.
✅ Best For: Individuals who claim multiple deductions and exemptions.
New Tax Regime
Tax Slabs
- Income up to Rs 4,00,000: No Tax
- Rs 4,00,001 to Rs 8,00,000: 5%
- Rs 8,00,001 to Rs 12,00,000: 10%
- Rs 12,00,001 to Rs 16,00,000: 15%
- Rs 16,00,001 to Rs 20,00,000: 20%
- Rs 20,00,001 to Rs 24,00,000: 25%
- Above Rs 24,00,000: 30%
Key Features
✅ Lower Tax Rates: More attractive tax rates across different income slabs.
✅ Limited Deductions: Does not allow most exemptions available in the old regime.
✅ Best For: Individuals with simpler finances and fewer deductions.
Comparison at a Glance
Feature | Old Tax Regime | New Tax Regime |
---|---|---|
Tax Rates | Higher | Lower |
Deductions | Available under multiple sections | Very limited |
Simplicity | More complex due to exemptions | Easier to file |
Best For | Individuals with multiple deductions | Those who don’t claim deductions |
Which Regime to Choose?
🔹 For taxpayers with multiple deductions: The old regime may be more beneficial due to tax-saving options.
🔹 For those with simpler finances: The new regime might be preferable for its lower rates and ease of filing.
Note: The information provided here is based on the 2025 budget announcements. Always consult a financial advisor or refer to the official Income Tax Department website for the most up-to-date information.
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