Income Tax Calculator (FY 2024-25)

Income Tax Calculator for FY 2024-25 (AY 2025-26)

The Union Budget 2024 brought significant changes to the New Tax Regime, making it the default and more attractive option for many taxpayers. The Anivicus Income Tax Calculator is fully updated with these latest amendments to help you accurately compare your tax liability under both the Old and New Regimes.

Latest Amendments in the New Tax Regime

If you opt for the New Tax Regime this year, here are the key benefits you will receive:

• Increased Standard Deduction: The standard deduction for salaried employees has been increased from ₹50,000 to ₹75,000.
• Zero Tax up to ₹7 Lakhs: Under Section 87A, if your taxable income is up to ₹7,00,000 (which effectively means a gross salary of ₹7.75 Lakhs after standard deduction), you pay zero tax.
• Revised Tax Slabs: The tax slabs have been widened to reduce your overall tax burden:
  • Up to ₹3 Lakhs: Nil
  • ₹3L to ₹7L: 5%
  • ₹7L to ₹10L: 10%
  • ₹10L to ₹12L: 15%
  • ₹12L to ₹15L: 20%
  • Above ₹15 Lakhs: 30%

Why Does the Old Tax Regime Still Matter?

Despite the attractive new slabs, the Old Tax Regime is highly beneficial for individuals who have heavy investments and financial commitments. In the Old Regime, you can claim exemptions that are not allowed in the New Regime, such as:

• Section 80C: Up to ₹1.5 Lakhs on PPF, ELSS, EPF, Life Insurance, etc.
• Section 80D: Up to ₹25,000 (or ₹50,000 for senior citizens) on medical insurance premiums.
• Section 24(b): Up to ₹2 Lakhs on Home Loan interest for a self-occupied property.
• HRA Exemption: Based on your rent receipts and salary structure.

Expert Tip: If your total deductions (excluding standard deduction) exceed ₹3.75 Lakhs to ₹4 Lakhs, the Old Tax Regime will generally save you more money.