How Income Tax calculator can help you select between new and old regimes in ITR 2025

Selecting the correct tax regime while filing your income tax return (ITR) is more important than some might think: It directly affects how much tax you will pay, what deductions/exemptions you can claim and save taxes.

While the old regime has higher tax slabs, it allows for deductions and exemptions like HRA, LTA, 80C (PF, ELSS, insurance), 80D (medical insurance), home loan interest, etc. On the other hand, the new regime has lower tax slabs but no major deductions/exemptions.

If you’re unsure of which regime to choose, you can calculate how much tax liability you’ll have under both regimes and decide for yourself. The income tax calculator can help you in doing this.

Step 1: Go to the calculator page or do it here:

Step 2: Enter basic details, including financial year, age group and your residential city

Step 3: Enter income details. Provide your gross salary with all sources of income, including salary, income from house property, pension, etc. Ensure that you’re filling in accurately to get the correct calculation.

Note: If you receive a House Rent Allowance (HRA) or any other allowances, make sure you mention the details to determine what deductions and exemptions are available to you. Also, enter the deductions that you can claim, like Provident Fund (PF), New Pension System (NPS), ELSS, insurance premiums, 80C, etc.

Step 4: After this, the calculator will compute your tax liability under both schemes. You can compare them and see which regime is more beneficial to you.

Salaried individuals can change their regime every financial year while filing their ITR. Businesses and individuals with professional income, however, can only do it once in their lifetime. Moreover, if they have switched to the new regime, they can’t switch back to the old one.

The ITR filing deadline for non-audit cases is September 15. It’s just three days away, and taxpayers are advised to file their ITR as soon as possible to avoid penalties and extra charges.