ITR 2025: Which tax system is the best for you? Learn easy way to choose and calculate tax

The Income Tax Department has given taxpayers two best options for filing ITR (Income Tax Return), new tax system and old tax system. You can choose any of these and it depends on your choice and profit which tax system will be the best for you. With the help of calculations, you can also understand which tax system you will have to pay less tax. This information will prove to be very helpful in making smart financial decisions.

Know the easy way to calculate tax

Let’s know how you can calculate your tax sitting at home and how to compare both tax systems:

First of all you have to go to the e-filing portal of the Income Tax Department.

Here you have to enter your PAN number and name.

After this you have to choose the type of ITR. It includes individuals, firm, company and institutes.

Then choose the old tax arrangement or a new tax system.

Now choose in which age group you come:- Regular citizens, senior citizens and extremely senior citizens.

After this it will be the turn to enter the total income and deduction amount.

On the right you will see tax summer. In this, you will get all the information like total income, total deduction, tax under the new tax system, tax under the old tax system.

If you want to see the comparison, you can click on ‘See Comparison’.

Above you are given information about basic calculator. With this process, you will have a lot of convenience in understanding your tax liability.

Know change and benefits

In FY 2024-25, Finance Minister Nirmala Sitharaman announced a new tax system. Now taxpayers have two options for filing ITR: old tax system and new tax system. Under the new tax system, there is no tax on annual income of up to ₹ 12 lakh. However, you will not get many tax benefits in this.

For now, you can make changes in the old tax system and vice versa from the new tax system whenever you want. Under the old tax system, you could take advantage of the benefits of Section 80C by investing in various schemes. These schemes include post office schemes, bank FD, ELSS mutual funds etc. This flexibility allows taxpayers to choose the best option according to their financial plan.