FY 2025-26 — Compare old and new tax regimes with slab-wise breakdown.
| Income Slab | Tax Rate |
|---|---|
| Up to Rs 4,00,000 | NIL |
| Rs 4,00,001 - Rs 8,00,000 | 5% |
| Rs 8,00,001 - Rs 12,00,000 | 10% |
| Rs 12,00,001 - Rs 16,00,000 | 15% |
| Rs 16,00,001 - Rs 20,00,000 | 20% |
| Rs 20,00,001 - Rs 24,00,000 | 25% |
| Above Rs 24,00,000 | 30% |
Standard deduction of Rs 75,000 is available. Rebate u/s 87A for taxable income up to Rs 12,00,000 (after SD = Rs 12,75,000 gross income).
| Income Slab | Tax Rate |
|---|---|
| Up to Rs 2,50,000 | NIL |
| Rs 2,50,001 - Rs 5,00,000 | 5% |
| Rs 5,00,001 - Rs 10,00,000 | 20% |
| Above Rs 10,00,000 | 30% |
Standard deduction of Rs 50,000 is available. Rebate u/s 87A for taxable income up to Rs 5,00,000.
The new regime has lower rates but no deductions. The old regime is better if your deductions exceed Rs 3-4 lakh (80C + 80D + HRA + home loan). Use this calculator to compare both and choose the one that saves you more tax.
Under the new regime: 0-4 lakh is nil, 4-8 lakh is 5%, 8-12 lakh is 10%, 12-16 lakh is 15%, 16-20 lakh is 20%, 20-24 lakh is 25%, and above 24 lakh is 30%. A standard deduction of Rs 75,000 is available. Income up to Rs 12 lakh (after standard deduction) gets full rebate under section 87A.
The old regime allows: Section 80C (up to Rs 1.5 lakh for PPF, ELSS, LIC, etc.), Section 80D (up to Rs 25,000-50,000 for health insurance), HRA exemption, home loan interest (up to Rs 2 lakh under Section 24b), NPS additional deduction (up to Rs 50,000 under 80CCD(1B)), and standard deduction of Rs 50,000.
The new regime is the default from FY 2023-24. However, you can opt for the old regime while filing your ITR if it benefits you. Salaried employees can choose each year. Businesses have restrictions on switching back.
Under the new regime, if your taxable income (after standard deduction of Rs 75,000) is up to Rs 12 lakh, you get a full rebate making your tax zero. Under the old regime, the rebate applies if taxable income is up to Rs 5 lakh.