How to Calculate Tax for FY 2025-26: In her eighth budget presentation under the BJP-led central government, Union Finance Minister Nirmala Sitharaman unveiled significant changes in personal income tax, providing much-needed relief to middle-class taxpayers. The Budget 2025 introduces a revamped income tax structure, offering a full tax rebate for individuals earning up to Rs 12 lakh annually.
Revised Tax Slabs Under New Regime
| Annual Income | Tax Rate |
|---|---|
| ₹0-4 lakh | NIL |
| ₹4-8 lakh | 5% |
| ₹8-12 lakh | 10% |
| ₹12-16 lakh | 15% |
| ₹16-20 lakh | 20% |
| ₹20-24 lakh | 25% |
| Above ₹24 lakh | 30% |
A look at key tax reforms
- No income tax for individuals earning up to Rs 12 lakh per year, benefiting a large section of salaried professionals
- Standard deduction increased to Rs 75,000 from Rs 50,000, offering additional savings
- Adjustments in tax slabs aim to ease the burden on middle-income earners while ensuring progressive taxation
How to calculate your income tax online?
To estimate your tax liability for FY 2025-26, you can use Financial Express’s online income tax calculator.
Here are steps on how to use the calculator:
- Go to Financial Express’s income tax calculator
- Select the financial year for which you want to calculate IT for. Also, select your age bracket. Click ‘Next’
- Fill in your income details
- Fill in your deduction details. Click ‘Next’ and the calculated amount will show