New Tax Regime Calculator with e-Filing of Income Tax Return: Quick Guide for 2025: Babushahi Special

Filing your taxes correctly can feel like a yearly marathon. Between choosing the right tax regime, calculating your exact liability, and filing returns on time, even financially aware individuals can find it a bit much. That’s where a new tax regime calculator becomes very useful. For Assessment Year 2025–26, many salaried individuals are considering shifting to the new regime for its simplified slabs and no-frills deductions.

But how do you know if it’s right for you? How does it tie in with long-term financial planning, like insurance or retirement goals? This guide will help you understand how the calculator works, how it connects with the e-filing of income tax returns, and how smart financial tools (like insurance with tax benefits) can support your filing decisions.

Old vs New Tax Regime - What Has Changed?

The Indian income tax system currently allows individuals to pick between two regimes, the traditional one that allows deductions and exemptions, and the new regime, which offers lower tax rates but removes most exemptions. The government introduced this option to simplify filing for taxpayers who prefer flat rates over detailed deduction planning.

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If you aren’t claiming deductions like 80C, HRA, or LTA, the new tax regime calculator

might show that your liability is lower under the revised slabs.

What Is a New Tax Regime Calculator and Why You Should Use It

A new tax regime calculator is a simple online tool that helps you compute your expected tax liability under the new regime, based on your income and exemption profile. It gives you a side-by-side view of what you’ll pay under both systems.​

Suppose you’re earning ₹10,00,000 annually. Under the old regime, you may reduce taxable income using deductions like ₹1,50,000 (under Section 80C), ₹50,000 (standard deduction), and health insurance premiums (Section 80D). But if you don’t have many of these, the new regime with its flat rates may end up being more tax-efficient. Using the calculator helps take the guesswork out of this decision.

How the New Tax Regime Affects Your Deductions

The new regime removes over 70 deductions and exemptions available under the old regime. That includes popular ones like:

• Standard deduction for salaried employees
• Section 80C deductions (investments, PF, ELSS, etc.)
• House rent allowance (HRA)
• Leave travel allowance (LTA)
• Deductions for health insurance premiums under 80D

If you’ve been using these to bring down your taxable income each year, you’ll need to re- think your approach before switching. That’s why tax calculators are now more important than ever, as they do the math for both sides, allowing a clearer decision.

​But not everything is lost under the new regime. For example, life insurance payouts, especially under plans that offer a maturity benefit, may still be eligible for tax exemptions (subject to Section 10(10D) conditions). This makes insurance a strategic investment, not just a protective one.

​E-Filing of Income Tax Return and How to File Under the New Regime

Once you’ve figured out which regime suits you better, the next step is the e filing of income tax return​. If you’re opting for the new regime, you’ll need to declare it explicitly in your tax return. For salaried individuals, this is done while filing the ITR-1 or ITR-2.

If you’re self-employed or have business income, then it gets a little more specific since you’ll need to file Form 10-IEA before filing your income tax return to confirm your choice of regime. Forgetting to do this could lead to defaulting into the old regime and result in a higher tax outgo.

1. Log in to the Income Tax portal (incometax.gov.in)
2. Choose the right ITR form based on your income sources
3. Pick the tax regime you want (new or old)
4. Report all income accurately, including your salary, investments, rental income, capital gains, etc.
5. Upload supporting documents, if required
6. Pre-validate the bank account for the refund
7. Submit and e-verify your return

If you’re using tax-saving products like insurance plans, you’ll need to report those in the appropriate sections. While this is more relevant to the old regime, some new regime cases (like deductions for employer NPS contributions) still require accurate entry.

A Few Important Pointers Before You File

Let us summarise some best practices you should follow before completing the e-filing of your income tax return, whether you’re a salaried individual, freelancer, or earning rental income:​

• Double-check regime selection: Your choice is valid only for one financial year at a time (unless you have business income). So you can switch next year if needed.
• Use official calculators early: Don’t wait till March. Use the calculator now, get a sense of what your tax liability might look like, and plan investments (if required) accordingly.
• Review Form 26AS and AIS: These reports show income, TDS, and other transactions. Make sure there are no surprises.
• Verify deductions or lack thereof: If you’re under the old regime, list your 80C, 80D, and HRA claims. If you’re under the new regime, ensure you’ve not included them in the return by mistake.
• Consider future deductions: Maybe the old regime doesn’t help this year, but what about next year if you buy a home or increase insurance cover?

Final Thoughts

A new tax regime calculator is a helpful starting point since it lets you run quick comparisons and file with confidence. But your tax outgo is only one part of the picture. The other part, which is long-term stability, comes from how you plan for life events, emergencies, and retirement.​

That’s where insurance-backed investments quietly add depth to your tax strategy. Whether you're claiming deductions under the old regime or simply using insurance to protect your financial future, these tools deserve a spot in your larger plan.

​And when it comes to choosing the right plan, companies like Axis Max Life Insurance offer solutions that blend tax efficiency with long-term value.

​Standard T&C apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

​Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.

​Tax benefit is subject to change as per the prevalent tax laws.

August 27, 2025