Filing income-tax returns? Here’s how to calculate your ITR dues under new tax regime and old tax regime
The income-tax department has enabled excel utility for the ITR-1 (Sahaj), ITR-2, ITR-3, and ITR-4 (Sugam), ITR-5 and ITR-7 online forms and notified all of them for the tax year. Notably, the availability of excel utility means that you can prepare your returns offline before filing in the details and uploading the file digitally. Access it here: https://www.incometax.gov.in/iec/foportal/downloads/income-tax-returns
You can file your returns online by logging into (first-time filers must register) the official e-filing portal using User ID and password — https://www.incometax.gov.in/ before the 31 July deadline.
Here’s how taxpayers can calculate their ITR dues under new tax regime and old tax regime for financial year 2026 i.e. assessment year 2027 (FY26 / AY27).
How to calculate ITR dues in old tax regime
Under the old regime, standard deduction is ₹50,000, plus rebate of ₹12,500 is allowed for an income up to ₹5 lakh. You can also claim deductions under Section 80C up to ₹1.5 lakh, coupled with other deductions such as house rent allowance (HRA), home loan, NPS, children’s education, etc., according to Clear Tax.
Illustration: When calculating for income of ₹7.10 lakh, taking into account the above deductions and exemptions, under Section 80C, your taxable salary would be ₹2.50 lakh, leaving you with net 0 tax payable.
| Income Tax Slabs | Income Tax Rate |
|---|---|
| Up to Rs. 2.5 lakh | Nil |
| Rs. 2.5 lakh to Rs. 5 lakh | 5% |
| Rs. 5 lakh to Rs. 10 lakh | 20% |
| Above Rs. 10 lakh | 30% |
How to calculate ITR dues in new tax regime
Provisions for the new tax regime offer limited deductions and exemptions, but higher tax-free income. According to the Clear Tax report, this regime is more beneficial for assessees with straightforward earnings below ₹12 lakh per annum.
Under the new tax regime, for individuals whose income exceeds the ₹12 lakh limit, using the marginal relief facility allows for even higher tax-free income.
For example: For income of ₹12.15 lakh the income over limit is ₹15,000. For the full income, the tax would work out to ₹62,250. But with marginal relief factored in (tax more than income over limit i.e. 62,250 > 15,000), the difference is calculated as rebate (62,250 – 15,000 = 47,240).
Thus, you tax liability would be calculated tax – rebate (62,250 – 47,240) = payable tax (15,000) + health and education cess at 4% = ₹15,600. This has effectively brought down your tax liability from ₹62,250 to ₹15,600.
| New Tax Regime Slabs | New Tax Regime Rates |
|---|---|
| Up to Rs. 4 lakh | Nil |
| Rs. 4 lakh to Rs. 8 lakh | 5% |
| Rs. 8 lakh to Rs. 12 lakh | 10% |
| Rs. 12 lakh to Rs. 16 lakh | 15% |
| Rs. 16 lakh to Rs. 20 lakh | 20% |
| Rs. 20 lakh to Rs. 24 lakh | 25% |
| Above Rs. 24 lakh | 30% |
Old vs new tax regime: Which to choose?
Overall, the new tax regime offers a lower tax slab rate, higher standard deduction and exempt income, but has very few deduction benefits. Meanwhile the old tax regime has higher tax slab rates but lets you reduce the taxable income through significant deductions and exemptions. There is also the matter of rebate under Section 87A you can claim — ₹12,500 for income up to ₹5 lakh under the old regime and ₹60,000 for income up to ₹12 lakh under the new regime.
Thus, the consideration over whether new tax regime or old tax regime is better for you should take into account the applicable slab, and deductions you can claim.
ITR deadline: What is the last date to file returns?
According to the tax calendar on the I-T e-filing portal, all income tax returns except for the ITR-3, 4 and 6 forms are required to file returns for the tax year by 31 July 2026. Further, the due date for self-assessment tax payment is also 31 July 2026.
When filing your returns, taxpayers must complete the process by e-verifying their ITR within 30 days. Failure to do so may result in your ITR refund being delayed due to “invalid” or “incomplete” process.
The I-T department has clarified that you can complete this step using the e-filing portal using Aadhaar OTP, net banking, or electronic verification code (EVC) generated using a pre-validated bank account or pre-validated demat account, to ensure a secure and hassle-free process.
With the date fast approaching now is the ideal time to file returns comfortably. This will also help you avoid unnecessary last-minute rush or delays due to technical or calculation glitches. Notably, you can still file a delayed ITR till 31 December 2026, but this would cost you extra based on your taxable amount.
| Default | Relevant Provision | Possible Consequence |
|---|---|---|
| Filing ITR after the due date | Section 234F | Late fee up to ₹5,000 ( ₹1,000 if total income does not exceed ₹5 lakh) |
| Delayed revised return | Section 234-I | ₹1,000 or ₹5,000, depending on income |
| Under-reporting or misreporting income | Section 270A | Penalty of 50% to 200% of the tax payable |
| Receiving ₹2 lakh or more in cash in violation of rules | Sections 269ST & 271DA | Penalty equal to the amount received |
| Failure to pay self-assessment tax | Sections 140A & 221 | Penalty up to the outstanding tax amount |
Which ITR form should you choose?
If you do not know which return form to choose, click “Help me decide” on the e-filing portal to check eligibility conditions based on your taxpayer status. Read these conditions carefully, select the form that matches your eligibility, and click “Proceed to ITR filing.” Here’s a brief explainer:
- ITR-1 form: If you are an individual with income from salary, one house property, and other sources.
- ITR-2 form: If you are an individual or Hindu Undivided Family (HUF) without business income.
- ITR-3 form: If you are an individual or HUF with income from business or profession.
- ITR-4 form: If you have presumptive income from business or profession.
