INCOME TAX CALCULATOR (FY 2025-26 / AY 2026-27)

Income Tax in India: Complete Guide for FY 2025-26 (AY 2026-27) | EasyBuzz.in

Introduction

Are you looking to understand the latest income tax updates for the financial year 2025-26 (assessment year 2026-27)? You’re in the right place. At EasyBuzz.in, we’ve created a detailed, user-friendly guide to help you decode the new tax regime, compare it with the old regime, and make informed financial decisions. This article meets top SEO standards, is geo-optimized for Indian users, and adheres to AEO (Answer Engine Optimization) practices to provide quick, accurate, and easy-to-understand information.

What Is Income Tax?

Income tax is a direct tax imposed by the Government of India on your earnings. Whether you’re a salaried employee, business owner, or freelancer, if your income crosses the exemption limit, you’re liable to pay income tax as per the applicable slab rates.

Revised Income Tax Slabs Under New Regime for FY 2025-26 (AY 2026-27)

One of the most important highlights of Union Budget 2025 was the revision in tax slab rates under the new tax regime. The government also announced an increased rebate and new thresholds for deductions and exemptions.

✅ New Income Tax Slabs for FY 2025-26 (AY 2026-27):

✅ Major Benefits Under New Tax Regime:

• Rebate u/s 87A increased to ₹60,000: No tax liability for income up to ₹12,00,000

• Standard Deduction: ₹75,000 available

• Simplified Structure: Fewer exemptions, lower rates

Old vs. New Tax Regime: Which One Should You Choose?

Choosing between the Old and New Tax Regime depends on your income, deductions, and overall tax planning strategy.

🔁 Old Regime Highlights:

• Offers multiple deductions: 80C, 80D, 80E, 80TTA/TTB, HRA, etc.

• Best suited for taxpayers with high investments or housing loans

🔁 New Regime Highlights:

• Lower tax rates

• No deductions or exemptions (except standard deduction)

• Ideal for individuals with lower deductions

Tax Deduction & Exemption Options (Old Regime)

If you opt for the old regime, you can significantly reduce your tax liability using the following deductions:

• Section 80C: Investments in LIC, ELSS, PPF (Up to ₹1.5L)

• Section 80CCD(1B): NPS Contribution (₹50,000)

• Section 80D: Medical insurance premium

• Section 80E: Education loan interest

• Section 80TTA/TTB: Interest from savings accounts (₹10,000/₹50,000 for senior citizens)

• Section 24(b): Home loan interest (Up to ₹2L for self-occupied)

• HRA Exemption: Based on rent paid, salary, DA and city of residence

Additional Budget 2025 Highlights

• TDS on rent limit raised to ₹50,000/month

• Interest deduction for senior citizens increased from ₹50,000 to ₹1,00,000

• TCS on remittances: Threshold raised to ₹10 Lakhs; no TCS on education loans

How to Calculate Income Tax Easily?

To simplify this for you, EasyBuzz.in offers a smart Income Tax Calculator based on the latest 2025 Budget. Here’s how you can use it:

1. Choose Assessment Year (AY 2026-27)

2. Select your age category (below or above 60)

3. Enter income details:

   • Gross Salary

   • Rental Income

   • Interest Income

   • Other Sources

4. Add deductions (if opting for old regime)

5. Enter HRA details for exemptions

6. Click “Calculate” to get accurate tax liability for both regimes

Example: Tax Calculation Under New Regime (FY 2025-26)

Let’s assume your annual income is ₹18,00,000:

• Salary after standard deduction: ₹17,25,000

• Add other income: ₹35,000

• Total taxable income: ₹17,60,000

Tax Breakdown:

• ₹0 on first ₹4,00,000

• ₹20,000 on next ₹4L (5%)

• ₹40,000 on next ₹4L (10%)

• ₹60,000 on next ₹4L (15%)

• ₹32,000 on next ₹1.6L (20%)

Total Tax: ₹1,52,000 + 4% Cess = ₹1,58,080

Why Use EasyBuzz Income Tax Calculator?

• ✅ Accurate and Instant results

• ✅ Geo-optimized for Indian taxpayers

• ✅ Answer Engine Ready for fast search visibility

• ✅ Secure & Easy-to-use interface

Final Thoughts

Navigating through tax filing and planning can be complex. But with EasyBuzz.in, you have access to updated tools, accurate calculators, and easy-to-understand guides. Whether you’re a first-time filer or a seasoned taxpayer, this guide on the revised income tax regime for FY 2025-26 ensures you’re well-prepared and informed.

FAQs (Schema for AEO)

Q1. What is the new tax rebate under section 87A in 2025?
A. It has been increased to ₹60,000, eliminating tax liability on income up to ₹12L under the new regime.

Q2. Which is better: old or new tax regime?
A. It depends on your income and deduction eligibility. Use our calculator to compare both.

Q3. Is HRA exemption available under the new regime?
A. No, HRA and most exemptions are available only under the old regime.

Q4. How can I reduce my tax legally?
A. Use deductions under 80C, 80D, 80G, 80E, and home loan interest under the old regime.

📌 Stay informed, plan smart, and file right — only with EasyBuzz.in!