Millions of Indians are now preparing their Income Tax Returns for the financial year 2024 to 2025. The deadline for most taxpayers is September 15 while those whose accounts require an audit must submit their returns by September 30. With significant changes announced in the Union Budget earlier this year, many people are confused about how much tax they actually need to pay. This is where an online income tax calculator can make the process far simpler, giving you clarity within minutes.
The Union Budget 2025 brought welcome relief for middle-income earners. The basic exemption limit has been raised to four lakh rupees while the rebate under Section 87A has increased to sixty thousand rupees for income up to twelve lakh rupees under the new regime. Effectively, this means that individuals with taxable income of up to twelve lakh rupees do not need to pay any income tax. The new rules have been designed to put more disposable income in the hands of common taxpayers and boost household spending.
The revised income tax slabs under the new regime start at five percent for annual incomes between four lakh and eight lakh rupees. Those earning between eight lakh and twelve lakh rupees fall into the ten percent bracket. Incomes between twelve lakh and sixteen lakh rupees are taxed at fifteen percent. For those earning between sixteen lakh and twenty lakh rupees, the tax rate is twenty percent, and for incomes up to twenty four lakh rupees, the rate is twenty five percent. Any income above twenty four lakh rupees is taxed at a flat thirty percent. Salaried taxpayers are also eligible for a standard deduction of seventy five thousand rupees, which further reduces their taxable income.
With so many changes, it is natural for individuals to feel uncertain about their liabilities. An income tax calculator removes this confusion. Available on the official Income Tax Department website and several trusted financial portals, the calculator helps taxpayers understand their liability quickly. By selecting the financial year, entering personal details such as age and residential status, and feeding in taxable income after deductions, the calculator automatically displays the exact tax payable along with cess and surcharge. This allows individuals to plan better, avoid mistakes in filing, and know whether they are eligible for refunds or required to pay additional taxes.
The use of an income tax calculator is particularly important for salaried professionals, pensioners, and those earning from interest or rental income. Investors dealing in capital gains from stocks and mutual funds can also benefit, as the calculator provides clarity across different income streams. With deadlines approaching, this tool is proving indispensable for millions of households across India.
As the government continues to simplify taxation and offer relief measures, tools like these are empowering citizens to comply with rules while saving money efficiently. Filing your returns on time not only helps avoid penalties but also improves financial discipline for the year ahead.
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