ITR filing FY 2025-26: How to calculate taxes under old income tax regime - explained
Taxpayers should carefully evaluate their eligible deductions before deciding which tax regime to opt for. (AI image) Income Tax Slabs FY 2025-26 under the old
Taxpayers should carefully evaluate their eligible deductions before deciding which tax regime to opt for. (AI image) Income Tax Slabs FY 2025-26 under the old tax regime Income Tax Slab Income Tax Rate 0-2.5 lakh Nil 2.5-5 lakh 5% 5-10 lakh 20% Above 10 lakh 30% The above are applicable for resident individuals up to the age of 60. How to calculate taxes under old income tax regime To calculate taxes under the old tax regime, start with your salary income and reduce the standard deduction to arrive at the net taxable salary income.
Thereafter, add income from other sources, such as savings account interest, fixed deposit interest, dividends, or rental income, to compute the Gross Total Income (GTI). From the GTI, eligible deductions under Chapter VI-A, such as Sections 80C, 80CCD(1B), 80D, and 80TTA, can be claimed to determine the net taxable income. The applicable slab rates are then applied to calculate the tax liability. Particulars Amount (Rs) Salary Income 20,00,000 Less: Standard Deduction 50,000 Net Salary Income 19,50,000 Add: Savings Bank Interest 15,000 Add: Fixed Deposit Interest 35,000 Gross Total Income 20,00,000 Less: Chapter VI-A Deductions Section 80C (1,50,000) Section 80CCD(1B) – NPS 50,000 Section 80D – Health Insurance 25,000 Section 80TTA (Savings Account Interest) 10,000 Total Chapter VI-A Deductions (2,35,000) Net Taxable Income 17,65,000 Tax up to ₹2.5 lakh Nil Tax on ₹2.5 lakh to ₹5 lakh @ 5% 12,500 Tax on ₹5 lakh to ₹10 lakh @ 20% 1,00,000 Tax on ₹10 lakh to ₹17.65 lakh @ 30% 2,29,500 Total Tax 3,42,000 Add: Health & Education Cess @ 4% 13,680 Total Tax Liability 3,55,680 Points to Remember Form 16 should not be relied upon blindly, says Archit Gupta.
Carefully verify every income and deduction entry to ensure that all eligible benefits are claimed correctly. He also says it’s important to refer to Form 26AS and AIS to identify additional income sources, such as interest income, that may not be
reflected in Form 16, and cross-verify with the relevant evidence. Deductions under Sections 80TTA and 80TTB can be claimed only if the prescribed conditions are satisfied. Avoid claiming deductions without adequate supporting documents such as receipts, certificates, and bank records, he cautions.
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