ITR Filing 2025: If you are preparing to file income tax returns (ITR), using tax calculator before filing returns can make your tax planning much easier. This tool available on the Income Tax Department’s website helps you decide how the old tax system will be better for you or new, as well as how much your tax liability is being made.
Where to get tax calculator
After logging on to the portal of the Income Tax Department, go to the “Tax Tools” section. Two calculators are available here: one general tax calculator and the other Old vs New Tax Regime Calculator. By using these tools, you can know how much your tax liability will be made and how much benefit will be given in which system.
This is how to use tax calculator
Tax calculator After clicking on, some important information has to be filled, such as assessment year (2026-27), taxpayer category (eg person, HUF, company etc.), age category (less than 60 years, 60-80 or above 80) and residential status. After this, enter your taxable income, and the calculator will automatically show the total amount by adding your tax liability, surcharge and cess.
It is important to pay attention to these things
In FY 2024-25, there is no tax in the old tax system on income of up to ₹ 5 lakh under section 87A.
- This exemption limit in the new tax system is ₹ 7 lakh.
- In the budget 2025, the exemption limit in the new tax system has been increased to ₹ 12 lakh.
- Tax also adds calculator surcharge and 4% health+education cess.
- Total tax liability appears on the last screen.
Old or new tax system: Who is better?
The second option of tax calculator helps compare whether the old tax system is beneficial for you or new. Tax slabs in the new tax system are less, but you cannot take tax exemption on any investment or expenditure.
On the other hand, the old systems have higher tax rates but there is a benefit of section cuts like HRA, 80C, 80D. Taxpayers should decide on the basis of their income and investment profiles which system is better for them.
Return will not be delayed due to correct calculation
Using tax calculator before filling ITR will not only correct your calculation, but you will also get prevention of risks like delay in refund or tax default. This tool is especially important for taxpayers who want to claim investing, HRA or other deduction in a year.
Also read: ITR Filing 2025: How is Tax on F & O Trading? From ITR form to audit, learn every question answer
