Introduction
The Government of India has revised the income tax slabs for FY2025-26, which could impact your tax liability. Many taxpayers struggle to understand the exact tax savings under these new slabs. Fortunately, tools like ChatGPT can quickly analyze your tax situation based on your Form 16. In this article, we’ll walk you through the new tax slabs, how to check your potential tax savings in just 2 minutes, and whether it’s safe to use ChatGPT for this purpose.
Current Tax Slabs (Old New Regime – FY2024-25)
Before diving into the revised slabs, let’s review the existing ones:
Income Slabs (₹) | Tax Rate (%) |
---|---|
Up to 3,00,000 | 0% |
3,00,001 – 7,00,000 | 5% |
7,00,001 – 10,00,000 | 10% |
10,00,001 – 12,00,000 | 15% |
12,00,001 – 15,00,000 | 20% |
Above 15,00,000 | 30% |
Revised Tax Slabs (New New Regime – FY2025-26)
The government has introduced updated tax rates, which offer tax relief to many income groups:
Income Slabs (₹) | Tax Rate (%) |
Up to 4,00,000 | 0% |
4,00,001 – 8,00,000 | 5% |
8,00,001 – 12,00,000 | 10% |
12,00,001 – 16,00,000 | 15% |
16,00,001 – 20,00,000 | 20% |
20,00,001 – 24,00,000 | 25% |
Above 24,00,000 | 30% |
With these revised slabs, many salaried employees can benefit from lower tax rates. But how do you calculate your savings efficiently?
How to Check Your Tax Savings Using ChatGPT?
Checking your tax savings manually can be tedious, but AI tools like ChatGPT can do it for you in just 2 minutes! Here’s how:
Step 1: Download Your Form 16 (Part A and B)
- Your employer issues Form 16 at the end of the financial year.
- Ensure you have Part B, which contains details of your taxable income and tax paid.
Step 2: Upload Form 16 to ChatGPT
- Open ChatGPT and initiate a conversation.
- Upload your Form 16 (Part B).
- Write or modify based on your need”Govt of India has revised the tax rates for FY25-26. Here is my Form 16 Part B of last year and no salary hikes in this year or there is salary hike from X CTC per annum to Y CTC per annum (remove one of them). I am using New Tax Regime (modify to old tax regime if you are using that). Tell me how much tax savings I would have from next financial year.Old Income Tax ratesIncome Tax Slabs (₹) Tax Rate (%)
Up to 3,00,000 0%
3,00,001 – 7,00,000* 5%
7,00,001 – 10,00,000 10%
10,00,001 – 12,00,000 15%
12,00,001 – 15,00,000 20%
Above 15,00,000 30%New Tax Rates
Zero to ₹ 4,00,000— No Tax
₹ 4,00,000 to ₹ 8,00,000—5%
₹ 8,00,0001 to ₹ 12,00,000—10%
₹ 12,00,001 to 16 lakh rupees—15%
₹ 16,00,001 to 20 lakh rupees—20%
₹ 20,00,001 to 24 lakh rupees– 25%
Above 24 lakh—30%”
Step 3: Get Your Tax Savings Report
ChatGPT will:
- Extract key salary details from Form 16.
- Compare your tax liability under both old and revised new tax slabs.
- Show your tax savings per year and per month.
For example, if your taxable income is ₹24L, your tax might reduce by ₹1.25L per year under the revised regime, leading to monthly TDS savings of ₹10,400.
Is ChatGPT Safe for Uploading Personal Tax Data?
While ChatGPT is a powerful tool, many people worry about privacy and data security. Here’s what you need to know:
- Encryption & Security: ChatGPT does not store or retain uploaded files.
- No Human Access: Uploaded documents are processed securely without human intervention.
- Best Practice: If concerned, remove sensitive details (like PAN, Name, Bank details etc.,) before uploading Form 16.
Can I compute this manually?
Yes, you can always compute manually by bucketing your income into old tax rates Vs New Tax Rates, however this would take some time. Accuracy needs to be reverified before you conclude on this
Conclusion
The revised tax slabs for FY2025-26 could lead to significant tax savings. Instead of manually calculating, you can use ChatGPT to check your tax savings in just 2 minutes. However, always ensure your data privacy by removing sensitive details before uploading. Stay updated and make informed financial decisions to maximize your tax benefits!
This article was published during first cut info available during budget discussion, hence we would update this if there are any incremental updates.
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I used “Telugu” option at bottom to read in my local language. 5 minutes i could get my tax deduction. Timely article andi
Ok Greeat that you read the article in telugu and found it useful.
It took me exactly 90 seconds with this as i have my form 16 pdf ready. Kudos to you Sureshji
Great that it was useful to you
Good one, first one to comment.
Thank you Satish. Have you tried this and checked your tax savings ?