Income Tax Slab in (FY 2025-26)
| Income Tax Slab | Tax Rate |
|---|---|
| Under Rs. 4,00,000 | NIL |
| Rs. 4,00,000 - 8,00,000 | 5% |
| Rs. 8,00,000 - 12,00,000 | 10% |
| Rs. 12,00,000 - 16,00,000 | 15% |
| Rs. 16,00,000 - 20,00,000 | 20% |
| Rs. 20,00,000 - 24,00,000 | 25% |
| Above Rs. 24,00,000 | 30% |
Why no Income Tax for Upto 12 lakh of Income
- Because of a new regime of rebate application of Rs. 60,000.
- Modified income tax slab rate as per FY 2025-26.
What is Income Tax calculation
Income tax calculation is a process in which a single person can calculate his tax rate amount which is supposed to be paid to the government as per the income tax rule of the Indian Government. Income tax is the amount that deduct the form the total income of an individual and the amount is a certain percentage of total income that a person is earning in a Financial Year that is called Income Tax rate. The income tax rate is dependent on the income which is earned in one year. Different income taxes are predefined as per income amount following the Indian Government rule. Income Tax Rates are mentioned above. You can calculate your income tax with the Income Tax Calculator.uctus nec ullamcorper mattis, pulvinar dapibus leo.
Why Income Tax Calculator
With the income tax calculator, you can calculate your tax liability based on your income details online. Also, it helps you decide which tax regime is more beneficial for you by comparing tax liabilities in the old and new tax regimes. Our tool has been updated based on the proposed income tax changes in the Union Budget 2025 so you can better plan your finances.
Advantages of Filing an Income Tax Return
Filing an income tax return serves as a formal declaration of your earnings and the taxes paid during a financial year. It provides numerous benefits to taxpayers, including the following:
-
Faster Loan Approvals
Applying for a loan can be a lengthy process, but having a filed income tax return can expedite approval. Most banks require applicants to submit tax return documents as proof of income when processing loans.
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Smooth Visa Processing
For individuals planning to travel, work, or settle abroad, immigration authorities often request income tax returns as proof of financial credibility. These documents help assess an applicant’s tax compliance and income stability
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Tax Refund Eligibility
If excess tax has been deducted from your income, you can claim a refund from the Income Tax Department. However, to receive this refund, filing an income tax return is mandatory
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Offsetting Financial Losses
Investors who incur losses from selling investments can offset these against current or future gains. However, this benefit is only available to those who file their income tax returns on time.
Tax-Exempt Incomes Under the New Tax Regime
Although the new tax regime offers lower tax rates, it does not include many deductions available in the old tax regime, such as 80C and 80D. However, certain types of income remain tax-exempt under the new system:
- Post Office Savings Interest: Interest earned up to ₹3,500 per financial year for a single account and ₹7,000 for a joint account.
- Gratuity Payments: Exempt up to ₹20 lakh during an individual’s lifetime.
- Life Insurance Maturity Proceeds: The maturity amount received from life insurance policies remains tax-free.
- Employer Contributions to EPS/NPS: Exempt up to ₹7.5 lakh per financial year.
- EPF Interest: Interest earned on EPF contributions up to ₹2.5 lakh annually is exempt from tax.
- PPF & Sukanya Samriddhi Yojana Returns: The interest and maturity amounts from these schemes remain tax-free, although 80C deductions are not applicable.
- Gifts from Employers: Gifts received up to ₹5,000 per financial year are exempt from taxation.
- Official Allowances: Exemptions apply to allowances for travel, food coupons, and other work-related expenses provided by employers.
By understanding these benefits and exemptions, taxpayers can make informed financial decisions and optimize their tax liabilities effectively.mcorper mattis, pulvinar dapibus leo.
