New income tax calculator on the e‑filing portal proposed by ICAI for Budget 2026, details here

During the income tax return (ITR) filing season every year, many taxpayers struggle to calculate their tax liability or even their taxable income. Although the total income and tax-paid details are generally available in the Form 26AS and the Annual Information Statement (AIS), there is no utility on the e-filing portal that can automatically calculate the total tax liability and, in turn, make ITR filing easier.

"The Income-tax e-filing website can have a utility through which total income and tax liability of assessee can be computed with the help of information available in forms corresponding to Form 26AS and AIS," ICAI said in its pre-budget memorandum.

"This information should be pre-filled in the return, based on which total income and tax liability should be computed by the system," it added.

The ICAI further said that the taxpayer may be given an option to accept the calculation and pay the tax thereon. In case the taxpayer pays tax based on the pre-filled calculation then his return should not be subject to any scrutiny.

"If the taxpayer accepts the computation and pays tax thereon, then, the same would not be subject to scrutiny under section 270(10) of the 2025 Act corresponding to section 143(3) of the 1961 Act," ICAI said.

Calculate your taxes for FY 2025-26

Income Tax Calculator

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FY 2025 - 2026

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Union Finance Minister Nirmala Sitharaman will present Budget 2026 on February 1, 2026.

ICAI has also suggested removing the requirement of filling an application in a sperate form for opting in or opting out of the new regime.

"The provision for exercise of option should be contained in the ITR itself so that there is no requirement for filing an application in a separate form for exercise of option. This will facilitate ease of doing business and reduce compliance burden," it said