2025 India Income Tax Calculator: Compute Tax on ₹12 Lakh Salary (Step-by-Step Guide)

 

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2025 India Income Tax Calculator: Compute Tax on ₹12 Lakh Salary Easily

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Table of Contents

1. 2025 Budget Highlights: Key Tax Changes
2. New vs. Old Tax Regime: What’s Better for ₹12 Lakh?
3. Step-by-Step Tax Calculation for ₹12 Lakh Salary
4. FAQs: Deductions, Rebates, and Tax-Saving Hacks
5. Free 2025 Income Tax Calculator (Download Now)
6. Conclusion & Call-to-Action

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1. 2025 Budget Highlights: Key Tax Changes

India’s 2025 Union Budget introduces revised income tax slabs that simplify filing under the new default tax regime. For a salaried individual earning ₹12 lakh annually, understanding these changes is vital to reduce tax liability. Based on the latest data from ClearTax, the updated slabs focus on better compliance and ease of calculation. This guide breaks down the slabs, details deductions, and provides a free tax calculator to help you compute your dues accurately.

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2. New vs. Old Tax Regime: What’s Better for ₹12 Lakh?

New Tax Regime (2025) Slabs

• ₹0–₹3.5 lakh: 0%
• ₹3.5–₹7 lakh: 5%
• ₹7–₹10 lakh: 10%
• ₹10–₹12 lakh: 15%
• Above ₹12 lakh: 30%

Old Tax Regime (With Deductions)

• ₹0–₹2.5 lakh: 0%
• ₹2.5–₹5 lakh: 5%
• ₹5–₹10 lakh: 20%
• Above ₹10 lakh: 30%

Key Insight:
The new regime offers lower slab rates but restricts common deductions like HRA and Section 80C benefits. Use our calculator to compare which regime maximizes your savings. For more details, refer to ClearTax's income tax slabs.

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3. Step-by-Step Tax Calculation for ₹12 Lakh Salary

Example: Ms. Patel, under the new tax regime, earns ₹12 lakh per annum.

1. Standard Deduction: ₹50,000 (as per 2025 rules).
2. Taxable Income: ₹12,00,000 – ₹50,000 = ₹11,50,000.
3. Tax Breakdown:
   • ₹0–₹3.5 lakh: No tax.
   • ₹3.5–₹7 lakh: 5% of ₹3.5 lakh = ₹17,500.
   • ₹7–₹10 lakh: 10% of ₹3 lakh = ₹30,000.
   • ₹10–₹11.5 lakh: 15% of ₹1.5 lakh = ₹22,500.
   • Total Tax: ₹17,500 + ₹30,000 + ₹22,500 = ₹70,000.
   • Cess (4%): ₹2,800.
   • Final Tax Liability: ₹72,800.

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4. FAQs: Deductions, Rebates, and Tax-Saving Hacks

• Can I switch regimes after filing my ITR?
  No, you must choose your regime before filing.

• What is the maximum deduction under Section 80C?
  Up to ₹1.5 lakh under the old regime, not applicable under the new regime.

• Any new rebates in 2025?
  Yes, Section 87A now offers a rebate of ₹30,000 for incomes under ₹8 lakh.

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5. Free 2025 Income Tax Calculator (Download Now)

Download our Excel-based Income Tax Calculator to automatically compute your tax liability under both regimes.

• External Link: Income Tax India Official Portal

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6. Conclusion & Call-to-Action

Stay ahead this tax season by understanding the nuances of India’s 2025 tax slabs. Use our free calculator to determine which regime—new or old—suits your financial needs best.
CTA:

• “Download our calculator and start planning your tax savings today!”
• “Have questions? Drop a comment below for personalized advice!”

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