Income Tax Calculator
Tax planning heavily relies on accurately estimating your taxes before you file your return. However, calculating income tax can be intricate, demanding a thorough understanding of tax laws. Recognizing this challenge, we’ve developed a user-friendly online tax calculator. This tool is designed to simplify the process, helping you easily estimate your potential tax refund or the amount you owe the government, by applying the most up-to-date provisions of the Income Tax Act and the rules issued by the Income Tax Department.
ITR Return filing
Ensuring your Income Tax Return (ITR) is filed correctly is really important. For the Assessment Year 2025-26 (which covers the financial year 2024-25), meeting the deadlines and making sure everything is accurate helps you stay compliant and avoid problems. Handling your tax return properly also ensures you get any tax refund you’re owed.
While you can file your ITR online, figuring out the right forms, detailing your income, and claiming deductions takes time and specific knowledge. Mistakes or delays when you’re filing your tax return can lead to penalties.
Tax2Fin offers straightforward and reliable ITR filing services. As your online tax consultant, we’ll manage the online tax filing process for you, making sure everything follows the latest tax rules. Choose Tax2Fin for dependable income tax assistance and rest assured your taxes are handled correctly.
Different ITR Forms / Income Tax Return Forms (ITR-1 to ITR-7) in India
The first step for accurate tax return filing for Financial Year 2024-25 (Assessment Year 2025-26) is selecting the correct Income Tax Return (ITR) form. The Income Tax Department provides various forms, each tailored to different taxpayer categories and income types. Using an incorrect form can lead to delays or even rejection of your return.
Here’s a straightforward overview of the main Income Tax Return Forms relevant for most individuals and businesses:
ITR-1 (Sahaj)
Who Should Use It: This is for resident individuals with a total income up to ₹50 lakh from:
- Salary or Pension
- One House Property
- Other sources like interest (excluding lottery/race winnings)
- Agricultural income up to ₹5,000
ITR-2
Who Should Use It: Individuals and Hindu Undivided Families (HUFs) who are not eligible for ITR-1 and do not have income from business or profession. This often applies if you have:
- Income exceeding ₹50 lakh
- Income from more than one house property
- Capital gains (from selling property, shares, mutual funds, etc.)
- Foreign assets or foreign income
- Agricultural income over ₹5,000
ITR-3
Who Should Use It: Individuals and HUFs who do have income under the head “Profits and Gains of Business or Profession”. This form covers:
- Income from a proprietary business or profession
- Income as a partner in a firm
- It also allows reporting income from salary, house property, capital gains, and other sources alongside business income.
ITR-4 (Sugam)
Who Should Use It: Resident Individuals, HUFs, and Partnership Firms (other than LLPs) opting for the presumptive taxation scheme. This applies if your income includes:
- Business income under Section 44AD (Turnover up to ₹2 Crore)
- Professional income under Section 44ADA (Gross receipts up to ₹50 Lakh)
- Income from goods carriages under Section 44AE
ITR-5
Who Should Use It: This form is specifically for entities other than individuals, HUFs, and companies. It applies to:
- Partnership Firms
- Limited Liability Partnerships (LLPs)
- Association of Persons (AOPs)
- Body of Individuals (BOIs)
- Artificial Juridical Persons (AJPs), Estates of deceased/insolvent, Business trusts, Investment funds.
ITR-6
Who Should Use It: This form is mandatory for Companies registered under the Companies Act, unless they are claiming exemption under Section 11 (related to income from property held for charitable or religious purposes).
Note: ITR-6 must be filed electronically with a Digital Signature Certificate (DSC). Relevant for company tax return.ITR-7
Who Should Use It: This form is for persons including companies who need to file returns under specific sections like 139(4A), 139(4B), 139(4C), or 139(4D). This typically includes:
- Trusts (Charitable / Religious)
- Political Parties
- Scientific Research Associations
- Universities, Colleges, Hospitals, or other institutions claiming tax exemptions.
Need help with your ITR form selection? Choosing the correct form is crucial for smooth ITR e-filing. If you’re uncertain about which form applies to your specific situation or entity, Tax2Fin’s experts can offer clear income tax assistance. We guarantee accurate filing every time.
Income Tax Slab for the F.Y. 2024-25 i.e. A.Y. 2025-26
The first step for accurate tax return filing for Financial Year 2024-25 (Assessment Year 2025-26) is selecting the correct Income Tax Return (ITR) form. The Income Tax Department provides various forms, each tailored to different taxpayer categories and income types. Using an incorrect form can lead to delays or even rejection of your return.
Here’s a straightforward overview of the main Income Tax Return Forms relevant for most individuals and businesses:
| Slab | Rates |
|---|---|
| Rs. 0 to Rs. 3,00,000 | NIL |
| Rs. 3,00,001 to Rs. 7,00,000 | 5% |
| Rs. 7,00,001 to Rs. 10,00,000 | 10% |
| Rs. 10,00,001 to Rs. 12,00,000 | 15% |
| Rs. 12,00,001 to Rs. 15,00,000 | 20% |
| More than Rs. 15,00,000 | 30% |
Income Tax Slab for People Between 60 to 80 Years i.e. Senior Citizens
| Tax Slab | Rates |
|---|---|
| Rs. 3 lakhs | NIL |
| Rs. 3 lakhs - Rs. 5 lakhs | 5.00% |
| Rs. 5 lakhs - Rs. 10 lakhs | 20.00% |
| Rs. 10 lakhs and more | 30.00% |
Income Tax Slab for People More than 80 Years i.e. Super Senior Citizens
| Tax Slab | Rates |
|---|---|
| Rs. 0 - Rs. 5 lakhs | NIL |
| Rs. 5 lakhs - Rs. 10 lakhs | 20.00% |
| Above Rs. 10 lakhs | 30.00% |
Income Tax Slabs for Domestic Companies
| Particulars | Old Tax Regime | New Tax Regime |
|---|---|---|
| Company opts for section 115BAB (not covered in section 115BA and 115BAA) & is registered on/after October 1. 2019 and has started manufacturing on/before 31st March 2024 | 15% | |
| Company opts for Section 115BAA where the total income of a company has been calculated without claiming specified deductions exemptions incentives and additional depreciation | 22% | |
| Company opts for section 115BA registered on/after March 1. 2016 and is in the manufacture of any article or thing and does not claim a deduction as specified in the section | 25% | . |
| Turnover/gross receipt of the company is less than Rs 400 crores in the previous year | 25% | - |
| Other Domestic Company | 30% | - |
Health & Education Cess: A uniform rate of 4% applies to the income tax payable.
Surcharge Rates:
- For Individuals/HUF/AOP/BOI:
- If total income exceeds ₹1 crore but not ₹10 crores, a 7% surcharge on income tax applies.
- If total income exceeds ₹10 crores, a 12% surcharge on income tax applies.
- For Domestic Companies (opting for Section 115BAA and 115BAB):
- A flat 10% surcharge on income tax is applicable, irrespective of the income level.
Income Tax Rate for Partnership Firm or LLP as Per Old/New Tax Regime
A partnership firm or an LLP is subject to a flat income tax rate of 30%.
Important Notes:
- Surcharge: A surcharge of 12% is levied on the income tax if the firm’s total income exceeds ₹1 crore.
- Health and Education Cess: A 4% Health and Education Cess is applicable on the total income tax, including any surcharge.
Tax Slab Rate for FY 2024-25 (AY 2025-26), New Tax Regime – Why an Option to Choose is Given?
Under India’s current tax system, taxpayers have two main choices for paying their income tax:
New Tax Regime: You can opt to pay tax at lower rates, but this comes with the condition that you forgo most specific exemptions and deductions that are otherwise available under income tax laws.
Old Tax Regime: Alternatively, you can continue to pay taxes based on the older, generally higher income tax rates. By choosing this regime, you retain the ability to claim various exemptions and rebates, which can help reduce your taxable income.
Conditions for Opting for the New Tax Regime
The taxpayers who have opted for the new tax regime will have to forgo some deductions and exemptions that are available in the old tax regime of taxation.
Deductions & Exemptions not allowed under the new tax regime are
- Leave Travel Allowance: An exemption for travel costs incurred during leave.
- Conveyance allowance: A specified allowance for commuting expenses.
- House Rent Allowance: Exemptions for rent paid on accommodation.
- Relocation allowance: Benefits provided to cover expenses incurred during a job-related relocation.
- Children education allowance: A limited exemption for expenses related to children’s education.
- Professional tax: A deduction for tax levied by state governments on professions.
- Daily expenses in the course of employment: Allowances for incidental costs during work.
- Helper allowance: Exemption for expenses incurred on employing a helper.
- Deduction under Chapter VI-A deduction (80C, 80D, 80E etc.) (Except Section 80CCD (2)): Various deductions for investments, specific expenses, and health insurance, excluding employer contributions to NPS.
- Standard deduction on salary: A fixed deduction amount for salaried individuals.
- Interest on housing loan (Section 24): A deduction on interest paid for a home loan.
- Other special allowances (Section 10(14)): Various specific allowances exempted under income tax rules.
Deductions which are Allowed under New Tax Regime
- Investment in Notified Pension Scheme under section 80CCD (2): Deduction for employer’s contribution to a notified pension scheme.
- Conveyance allowance for expenditure incurred for travelling to work: An allowance specifically for work-related commuting costs.
- Depreciation under section 32, except additional depreciation: Standard depreciation claimed on assets, excluding any extra depreciation benefits.
- Deduction for employment of new employees under section 80JJAA: Tax benefit for companies hiring new employees.
- Any allowance for travelling for employment or on transfer: Exemptions for travel expenses incurred due to work or job transfers.
- Transport allowance for specially-abled people: Specific allowance provided to individuals with special abilities for commuting.
Income Tax Slab as per Old Tax Regime in India
The following table outlines the income tax slabs and corresponding tax rates for individuals and Hindu Undivided Families (HUF) under 60 years old, as well as Non-Resident Indians (NRIs), adhering to the old tax regime:Old vs new tax regime calculator
| Income Tax Slab | Tax Rates |
|---|---|
| Up to Rs 2,50,000* | NIL |
| Rs 2,50,001 - Rs 5,00,000 | 5% |
| Rs 5,00,001 - Rs 10,00,000 | 20% |
| Above Rs 10,00,000 | 30% |
Surcharge in New Tax Regime:
For individuals opting for the new tax regime in F.Y. 2024-25 (A.Y. 2025-26), surcharge rates are tiered based on income, with a maximum cap.
- A 10% surcharge on income tax applies if your total income is more than ₹50 Lakhs but does not exceed ₹1 Crore.
- If your total income is more than ₹1 Crore but doesn’t exceed ₹2 Crores, the surcharge rate increases to 15% of the income tax.
- For total income exceeding ₹2 Crores, a 25% surcharge on income tax is applicable. It’s important to note that the 37% surcharge rate seen in the Old Regime for incomes above ₹5 Crores is not applied here; the highest surcharge in the New Regime is capped at 25%.
Differences between the Old and New Tax Regimes
- Tax Slabs: The old regime features several tax brackets with higher rates, while the new regime provides lower rates distributed across a greater number of slabs.
- Deductions and Exemptions: Under the old regime, a wide array of deductions and exemptions are permitted; however, most of these benefits are not available in the new regime.
- Simplicity: The new regime is designed for simpler tax calculations by reducing the number of available exemptions, in contrast to the old regime which offers more methods to lower taxable income.
- Suitability: The old regime might be more advantageous for individuals with significant investments and expenses eligible for deductions, whereas the new regime could be more suitable for those with fewer deductions.
- Choice of Regime: Taxpayers are given the flexibility to select either regime, enabling them to choose the option that best suits their individual financial circumstances.
Comparative Table of Old & New Tax Regime
| Key Points | Old Tax Regime | New Tax Regime |
|---|---|---|
| Tax Slabs | Features graduated tax slabs based on age (for individuals) ranging from 0% to 30%. Different basic exemption limits apply based on age. Basic exemption limit is ₹3,00,000 for all. | Features simplified tax slabs of 5%, 10%, 15%, 20%, 25%, and 30% that are the same for all individuals regardless of age. Basic exemption limit is ₹5,00,000 for all. |
| Deductions and Exemptions | Allows a wide range of deductions and exemptions under various sections (like 80C, 80D, 37(4), 80A, etc.) for investments, medical expenses, education, etc., significantly reducing taxable income. | Offers very limited deductions of exemptions. Only a few specific deductions are allowed, such as the standard deduction for salary/pension income (₹75,000), and employer's contribution to NPS (Section 80CCD(2)). |
| Tax Rates | Generally has higher marginal tax rates compared to the new regime. However, the extensive deductions and exemptions available can significantly reduce the effective tax rate, potentially resulting in lower tax payable for those who can claim many deductions. | Offers lower marginal tax rates compared to the old regime, especially in lower and middle income brackets. The benefit of lower tax rates is more pronounced for taxpayers with limited or no deductions and exemptions. |
| Compliance | Requires maintaining detailed records for deductions and exemptions, leading to higher paperwork and compliance burden. | Is simpler to comply with due to no deductions or exemptions, requiring minimal paperwork and record-keeping. |
When planning your taxes, it’s important to understand the differences between the Old and New Tax Regimes for the Financial Year 2024-25 (Assessment Year 2025-26). Here are some key points to consider:
Tax Rebate: Under the New Tax Regime, a resident individual can get a tax rebate of up to ₹25,000 if their total income doesn’t exceed ₹7 Lakhs, effectively making income up to ₹7 Lakhs tax-free. In contrast, the Old Tax Regime offers a rebate of up to ₹12,500 for resident individuals whose total income doesn’t exceed ₹5 Lakhs, making income up to ₹5 Lakhs effectively tax-free.
Surcharge for High-Income Earners: The New Tax Regime caps the maximum surcharge rate for high-income earners at 25%. This is lower than the Old Tax Regime, where the surcharge can go up to 37% for incomes above ₹5 Crore.
Ultimately, both tax regimes have their own advantages and disadvantages. The “better” option depends entirely on your personal circumstances and income profile. It’s strongly advised to carefully analyze your specific income sources, expenses, investments, and available deductions or exemptions under both regimes before making a choice. For a well-informed decision that best suits your needs, thoroughly evaluate your financial situation and consider consulting a tax professional if necessary.
Effective Tax Planning Strategies Taxpayers (AY 2025-26)
Effective tax planning can significantly reduce your tax liability and help you achieve your financial goals. When preparing your income tax return, it’s vital to consider legitimate ways to save on taxes. Here are six common strategies to discuss with your tax consultant:
Maximize Section 80C Benefits: This popular section allows for deductions up to ₹1.5 lakh (primarily under the Old Tax Regime) for various investments and expenses. Top options include contributions to Public Provident Fund (PPF), Employee Provident Fund (EPF), Equity Linked Savings Schemes (ELSS), life insurance premiums and principal repayment on your home loan. Fully utilizing this limit is a foundational step for tax savings.
Utilize Health Insurance Deductions (Section 80D): Premiums paid for health insurance covering yourself, your spouse, dependent children, and your parents are eligible for deduction under Section 80D (again, mainly with the Old Tax Regime). Limits are generally ₹25,000 for self/family (rising to ₹50,000 if a senior citizen) and an additional ₹25,000 for parents (or ₹50,000 if they are senior citizens). This also includes up to ₹5,000 for preventive health check-ups within the overall limit.
Consider NPS for Additional Tax Savings (Section 80CCD(1B)): Beyond the 80C limit, the National Pension System (NPS) offers an exclusive additional deduction of up to ₹50,000 annually for your contributions under Section 80CCD(1B). This benefit applies to both tax regimes, making it an effective tool for both retirement planning and tax saving.
Optimize Home Loan Tax Benefits: If you have a home loan (primarily under the Old Tax Regime), you can claim significant tax advantages. Interest paid on the loan is deductible up to ₹2 lakh per year for a self-occupied property under Section 24(b). Furthermore, the principal repayment component qualifies for deduction under Section 80C (within its overall ₹1.5 lakh limit).
Choose the Right Tax Regime Strategically: For Assessment Year 2025-26, the New Tax Regime is the default, offering lower slab rates but fewer deductions. The Old Tax Regime allows you to claim various deductions (like 80C, 80D, HRA, home loan interest, etc.). Your optimal choice depends entirely on your income level and eligible deductions. Calculating your liability under both regimes before filing is crucial for maximizing tax savings. Tax2Fin provides income tax assistance to help you make this vital decision.
Create a Hindu Undivided Family (HUF): For eligible families, forming a Hindu Undivided Family (HUF) can be a strategy to split income among family members, potentially lowering the overall tax burden.
Check Form 26AS & AIS Before Your ITR Filing
Before you begin your Income Tax Filing, a crucial first step is to review your Form 26AS and the Annual Information Statement (AIS). Consider these your official tax passbooks, provided by the Income Tax Department to give you a complete picture of your financial transactions and tax credits.
What are Form 26AS and AIS?
Form 26AS: This is your consolidated annual tax statement. It details all taxes deducted (TDS) or collected (TCS) against your Permanent Account Number (PAN). You’ll also find records of any Advance Tax or Self-Assessment Tax you’ve paid, along with information on refunds and certain high-value financial transactions.
Annual Information Statement (AIS): AIS offers an even broader financial overview. It encompasses all details from Form 26AS, plus extensive additional information. This includes specifics like savings account interest, dividends received, rental income, securities transactions, foreign remittances, and Goods and Services Tax (GST) turnover data. The Taxpayer Information Summary (TIS) provides a concise summary of the AIS data.
Why is Checking Form 26AS/AIS Crucial?
Reviewing these statements is vital for accurate tax return filing and preventing future complications:
- Verify Tax Credits: It ensures that all TDS/TCS deducted by your employer, bank, or other entities has been correctly deposited with the government against your PAN.
- Avoid Mismatches: Comparing these statements with your own financial records helps you identify and rectify any discrepancies before ITR Filing. Mismatches can lead to notices from the Income Tax Department or delays in processing your return and potential refunds.
- Ensure Complete Income Reporting: AIS, in particular, may highlight income details (like interest earned) that you might need to include in your tax return to ensure full compliance.
Accessing Your Form 26AS/AIS:
You can easily view and download both your Form 26AS and AIS directly from the official Income Tax e-filing portal after logging in.
At Tax2Fin, we emphasize verifying these statements as a vital part of accurate tax return filing. We assist you in meticulously reconciling this information as part of our ITR filing services, ensuring your return is both accurate and complete.
Documents Required for Filing Income Tax Return
Why Choose Tax2Fin for ITR Filing?
- Claiming Excess Income Tax Refund: If you’ve paid more tax than required through TDS or advance tax, filing your ITR is how you claim that excess amount back as a refund.
- Credit Card Processing Ease: Many financial institutions assess your creditworthiness, including for credit card applications, based on your ITRs. Consistent filing can make approval smoother.
- Avoid Penalty: Failing to file your ITR by the due date can result in penalties under the Income Tax Act, which can increase your tax liability.
- Carry Forward of Losses: If you incur losses in a financial year from certain sources (like capital gains or business), filing your ITR on time allows you to carry these losses forward to offset future income, thereby reducing future tax burdens.
- Loan Processing Ease: Banks and other lending institutions frequently require ITRs as proof of income and financial stability when you apply for loans (e.g., home loans, personal loans).
- Visa Application: When applying for visas to many foreign countries, especially for long-term stays or immigration, ITRs are often a mandatory document to demonstrate your financial standing and tax compliance.
- Evidence of Earnings: Your filed ITR serves as an official and reliable document proving your income. This is essential for various personal and financial purposes, such as applying for financial products or government schemes.
- Advantages in Scholarship: For some scholarship applications, especially those requiring a demonstration of financial need or family income, a filed ITR can provide concrete and verifiable evidence.
FAQs
Who is required to file Income Tax Returns?
Individuals, Hindu Undivided Families (HUFs), companies, and other entities in India must file an Income Tax Return if their income surpasses the specified threshold. This ensures compliance with tax regulations.
What is the due date for filing Income Tax Returns?
The ITR filing deadline varies by taxpayer category and income type. For individuals, it’s typically July 31st, though the government may extend this date.
What are the different types of Income Tax Return forms?
The Income Tax Department provides various forms (ITR-1 to ITR-7). The specific form to use depends on your income sources and total income.
How can I file my Income Tax Return?
You can file your ITR online via the official Income Tax Department website or other authorized e-filing portals. Offline filing using the appropriate form is also an option.
What documents are required for filing an Income Tax Return?
Key documents include your PAN and Aadhaar cards, Form 16 (for salaried individuals), bank statements, and details of investments and deductions.
Can I file a belated Income Tax Return?
Yes, you can file a belated return after the due date, but be aware that penalties and interest may apply. It’s best to file within the original deadline to avoid these charges.
What is the difference between Gross Total Income and Total Income?
Gross Total Income is your total earnings before any deductions. Total Income is the amount left after applying eligible deductions, and it is what your tax liability is calculated on.
Is it mandatory to link Aadhaar with PAN for filing Income Tax Returns?
Yes, linking your Aadhaar with your PAN is mandatory for ITR filing. This measure helps prevent tax evasion and ensures unique taxpayer identification.
What is the last date for ITR filing in Jaipur for AY 2025-26?
Last date for timely filing: 31st July 2025
Belated returns can be filed until: 31st December 2025 (with applicable late fees and penalties)