Income tax calculator: Before selecting the option that results in a smaller tax outgo, it is advised to consult the income tax calculator that calculates the tax under both the old and new regimes.Calculator for income taxes: In FY 2023, the new tax regime became the default tax regime, meaning that unless they want to opt out, taxpayers must pay income tax under the new regime. Only if they were informed that the previous tax system would result in lower taxes would they comply.
To make that choice, they must first calculate income tax for a year under both the old and new regimes, and then select the one that results in a smaller tax outlay for that year. Let's first review the tax exemptions that were permitted under the previous tax regime but not under the current one before moving on.
Exemptions from taxes
A number of income tax exemptions are only available under the previous tax system and are not available under the current one. Those provided under 80C, 80D, CCD(1B), 80D, and 80G are among them.
Even while there are a few exemptions granted under the new tax structure, they are extremely rare.
Therefore, you can use the tax calculator if you are a taxpayer and unsure if the new tax regime or the previous one is preferable for you.
Click here to view the income tax calculator, which allows you to compare the tax component computed under the two regimes:
Income Tax Calculator: Use the tax calculator as follows:
1. The assessment year is listed in a column that is pre-filled with 2025–2026.
2. Next, you can select if you are an individual, HUF, or AOP taxpayer, as well as whether you are a resident or not, younger than 60, older than 60, or between 60 and 80.
3. You must now put your income under distinct headings, including interest on self-occupied property, income other than salary, and income with special rates. Depending on the category you choose in step 2, these columns will vary.
4. Columns for deductions permitted under the new tax regime are now present, followed by a column corresponding to the old tax regime.
5. After that, you will see two distinct columns, one for each of the old and new regimes, where you must enter income under a number of different headings: income from self-occupied property, income other than salary and special rate income, gross total income, tax liability calculation, and income tax after section 87A relief.
6. Lastly, this calculator will provide the tax savings under the new regime as well as the computation of tax liabilities.
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