Title: Income Tax Calculation Under New Tax Regime (FY 2025-26) – Updated Slabs & Examples
Wondering how much tax you need to pay under the New Tax Regime for FY 2025-26? The latest Union Budget 2025 has revised income tax slabs, increasing the exemption limit and adjusting tax rates. This blog provides a detailed breakdown of the new slabs, along with easy-to-follow tax calculations for incomes of ₹15 lakh, ₹20 lakh, and ₹25 lakh. Stay updated on the latest tax rules and optimize your tax planning effectively!
Examples of Tax Calculations
1. Income: ₹15,00,000
- Up to ₹4,00,000: 0% tax = ₹0
- ₹4,00,001 – ₹8,00,000 (₹4,00,000): 5% = ₹20,000
- ₹8,00,001 – ₹12,00,000 (₹4,00,000): 10% = ₹40,000
- ₹12,00,001 – ₹15,00,000 (₹3,00,000): 15% = ₹45,000
Total Tax Before Cess: ₹20,000 + ₹40,000 + ₹45,000 = ₹1,05,000
Cess (4%): ₹4,200
Total Tax Payable: ₹1,05,000 + ₹4,200 = ₹1,09,200
Also Read :- 20 Tax Saving Tips, How to Save More on Taxes 2025
2. Income: ₹20,00,000
- Up to ₹4,00,000: 0% tax = ₹0
- ₹4,00,001 – ₹8,00,000 (₹4,00,000): 5% = ₹20,000
- ₹8,00,001 – ₹12,00,000 (₹4,00,000): 10% = ₹40,000
- ₹12,00,001 – ₹16,00,000 (₹4,00,000): 15% = ₹60,000
- ₹16,00,001 – ₹20,00,000 (₹4,00,000): 20% = ₹80,000
Total Tax Before Cess: ₹20,000 + ₹40,000 + ₹60,000 + ₹80,000 = ₹2,00,000
Cess (4%): ₹8,000
Total Tax Payable: ₹2,00,000 + ₹8,000 = ₹2,08,000
Also Read :- TDS Compliance Checklist for Small and Medium Businesses (SMBs) in India
3. Income: ₹25,00,000
- Up to ₹4,00,000: 0% tax = ₹0
- ₹4,00,001 – ₹8,00,000 (₹4,00,000): 5% = ₹20,000
- ₹8,00,001 – ₹12,00,000 (₹4,00,000): 10% = ₹40,000
- ₹12,00,001 – ₹16,00,000 (₹4,00,000): 15% = ₹60,000
- ₹16,00,001 – ₹20,00,000 (₹4,00,000): 20% = ₹80,000
- ₹20,00,001 – ₹24,00,000 (₹4,00,000): 25% = ₹1,00,000
- ₹24,00,001 – ₹25,00,000 (₹1,00,000): 30% = ₹30,000
Total Tax Before Cess: ₹20,000 + ₹40,000 + ₹60,000 + ₹80,000 + ₹1,00,000 + ₹30,000 = ₹3,30,000
Cess (4%): ₹13,200
Total Tax Payable: ₹3,30,000 + ₹13,200 = ₹3,43,200
Note: These calculations are simplified and do not account for other potential deductions or exemptions. For personalized tax advice, it’s recommended to consult with a tax professional.
