ITR 2025: How tax calculator can help you file your return with ease?
Income Tax Return (ITR): Before filing income tax return, taxpayers are supposed to use a tax calculator.
As you enter the income tax portal, you can navigate to the tax tools section. Here there is an option to choose among multiple tax calculators: tax calculator and old regime vs new tax regime calculator. As one enters the relevant details, it gives the calculation of income tax.
I. First you have to navigate to the income tax tools. Here there are several options to choose from: tax calculator, old regime Vs new regime calculator.
II. If you choose a tax calculator, you will reach here.
III. At this link, you need to enter the following details: Assessment year which is 2026-27. Then you have to write the category of taxpayer: individual, HUF, AOPs, domestic company, foreign company, LLP or cooperative society.
Then one has to enter the age i.e., whether age is less than 60, between 60-80 or above 80. Finally, one has to declare the residential status i.e., resident or non resident. Screengrab of tax calculator on Income Tax department's website
IV. Now, you have to enter net taxable income. Then it will show you income tax relief under 87A. This is because of 87A rebate that taxpayers are not supposed to pay any income tax on income upto ₹ 5 lakh in the old tax regime and upto ₹ 7 lakh under the new tax regime (FY 2024-25).
The limit for the new tax regime was raised to ₹ 12 lakh in Budget 2025, which will come into force for income earned in FY 2025-26. Read this article to know more about 87A.
V. The system shows the surcharge if any. It also adds health and education cess.
VI. Finally, at the bottom, one would be able to see the total tax liability.
Additionally, taxpayers can also use another calculator to evaluate whether the old tax regime is better or the new tax regime in terms of total tax outgo.
For the unversed, the new tax regime offers lower tax slabs but no deduction against investments in tax-saving instruments. Conversely, the old tax regime carried higher tax rates but allows taxpayers to claim HRA exemption, deductions under 80C, 80D and others.
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