Income Tax FY-2024-25 New vs Old Regime Calculation Sheet here

Accurately calculating income tax is crucial for effective financial planning. You can achieve this using CountLen’s online tax calculators or by creating a custom calculator in Google Sheets. These methods provide flexibility and transparency, enabling you to take control of your tax computation. By using simple formulas, you can ensure the accuracy of your income tax return and make informed financial decisions.

This method is particularly helpful for those who wish to understand the tax structure better or customize their calculations based on different scenarios. By setting up your own tax calculation in Google sheet or Excel, you can save time, avoid dependency on online tools, and have a reliable template for future use. With a few straightforward formulas, even those with minimal experience in spreadsheets can perform accurate tax computations.

New v/s Old Regime — Income Tax Slab, FY 2024-25 (AY 2025-26)

New Regime Tax Slab for Current Financial Year 2024-25 and Previous Financial Year 2023-24

Old Regime Tax Slabs for the financial years 2024-25 and 2023-24 remain the same. Below are the applicable income tax rates under the old regime:

Key Points:

• Senior Citizens (60–80 years): The basic exemption limit is ₹3,00,000.
• Super Senior Citizens (80+ years): The basic exemption limit is ₹5,00,000.
• Deductions like 80C, 80D, HRA, etc., are available in the old tax regime.

Standard Deduction:

The standard deduction offers salaried employees and pensioners a fixed reduction in taxable income without requiring investment proof or documentation. In the old tax regime, it remains ₹50,000, unchanged from the previous year. However, the new tax regime has increased this deduction to ₹75,000, providing an additional benefit of ₹25,000 over the previous financial year. This enhanced deduction applies uniformly, irrespective of the individual’s income level

Key Points:

• The standard deduction is straightforward, reducing taxable income without the need for documentation.
• In both tax regimes, this deduction benefits taxpayers by lowering the income subject to tax.

Income Tax Calculator in Google Sheets:

Tax Comparison Old vs New Regime

• Gross Income: ₹10,00,000
• Tax Under Old Regime: ₹75,400
• Tax Under New Regime: ₹44,200

For an income of ₹10,00,000 as shown above, the tax liability under the old regime is calculated after considering deductions such as ₹75,400 for GPF subscriptions and ₹65,000 for NPS contributions.

In comparison, the tax calculated under the new regime, which does not allow for these deductions, amounts to ₹44,200. This highlights the differences in tax benefits between the two regimes and underscores the importance of evaluating both options to determine the most advantageous choice for your financial situation.

Tax Comparison Old vs New Regime

• Gross Income: ₹12,00,000
• Tax Under Old Regime: ₹1,17,000
• Tax Under New Regime: ₹71,500

The new tax regime offers a lower tax liability in this scenario, primarily because it features reduced tax rates across slabs but does not permit deductions. On the other hand, the old regime benefits individuals who can claim substantial deductions, though it results in higher tax liability in this case. Download you Excel file here or go to sheets in Google Sheets.

• Gross Income: ₹14,00,000
• Tax Under Old Regime: ₹1,79,400
• Tax Under New Regime: ₹1,09,200

This comparison highlights a tax saving of ₹70,200 under the new regime.

Who Benefits More from the New Regime?

• Salaried individuals or professionals who do not claim substantial deductions.
• Taxpayers looking for a hassle-free and less restrictive tax framework.
• Those who prefer flexibility in financial planning over mandatory savings for deductions.

Considerations for the Old Regime:

While the old regime results in higher tax liability here, it may still benefit taxpayers who actively invest in tax-saving options like GPF, NPS, housing loan interest, or medical insurance. For such individuals, the cumulative deductions may outweigh the lower rates of the new regime.

In this case, the new regime is clearly advantageous, saving ₹88,400 in taxes. However, the choice between regimes depends on individual financial goals, investment habits, and preferences.

Income Tax Calculation Sheet for Salary Employees in Google Sheets:

We provide a detailed income tax calculation table below, covering gross incomes ranging from ₹7,00,000 to ₹50,00,000 (surcharge-free income). This table ensures precise income tax computation and aids in effective tax planning.

• The calculation table excludes surcharge rates, as these apply only to taxable income exceeding ₹50 lakh in FY 2024-25 (AY 2025-26).
• Income tax slabs and rates remain consistent for both men and women.
• For FY 2024-25, taxpayers with taxable income up to ₹5 lakh under the old tax regime are eligible for a tax rebate of up to ₹12,500 under Section 87A. In the new tax regime, a 100% tax rebate is provided under Section 87A for annual taxable income up to ₹7 lakh.

Key Features:

1. Comprehensive Coverage: Calculates taxes for various income levels, from ₹7,00,000 to ₹50,00,000.
2. Dual Regime Comparison: Provides tax calculations for both the old and new regimes, enabling you to compare and choose the most beneficial option.
3. User-Friendly: Designed for ease of use, allowing you to quickly compute taxes without extensive knowledge of tax rules.
4. Customizable: Adapt the sheet as per your financial details and preferences.

By using this sheet, you can confidently prepare your income tax return and select the regime that aligns best with your financial goals. Whether you opt for the deductions of the old regime or the simplified structure of the new regime, this table (as below) empowers you to make an informed decision.

Income Tax Calculation Sheet for FY 2024-25 and AY 2025-26 in Both New Regime and Old Regime:

The Tax Calculation Sheet is specifically designed to streamline the comparison between the new and old tax regimes for incomes ranging from ₹7 lakh to ₹50 lakh in FY 2024-25 (AY 2025-26), allowing taxpayers to effortlessly evaluate their tax liabilities under both systems.

The table below displays the tax calculated under the new regime in the 1st column based on the gross income listed in the 2nd column. The 3rd and 4th columns show the tax under the old regime, helping you compare and assess your tax liabilities for return filing.

Download the above calculation sheet or custom calculator, Excel file here.

Surcharge rate in both New and Old regime:

The calculation table provided above does not include the surcharge rate, as it applies only to taxable income exceeding ₹50 lakh in FY 2024-25 (AY 2025-26). For taxable income up to ₹5.0 crore, the surcharge rates are the same under both the Old and New regimes. However, for taxable income exceeding ₹5.0 crore, the surcharge rates differ between the two regimes, as outlined in the rates mentioned below:

Under the Income Tax Act, 1961, different surcharge rates are applicable to various taxpayers. Effective from April 1, 2023, the highest surcharge rate of 37% has been reduced to 25%, but this reduction applies exclusively to the New Tax Regime. This revised rate is applicable for the financial year 2023-24 and will continue at the same rate for FY 2024-25.

In comparison, the maximum surcharge under the New Tax Regime is capped at 25%, while under the Old Tax Regime, the maximum surcharge remains at 37% for AY 2025-26.