Updated for Union Budget 2025. Compare Old Regime vs New Regime side-by-side — includes salary, rental, capital gains, 80C, 80D, HRA, NPS, home loan interest, surcharge & 4% cess.
Old regime has higher exemption limits for seniors. Calculations use the standard slab; for 60+ taxpayers contact our experts for personalised optimisation.
Based on the inputs above, the New Regime results in lower total tax for FY 2025-26. The right regime depends on your actual deductions — talk to our CA team before filing your ITR.
Updated as per Union Budget 2025. The New Regime is the default; you can opt for the Old Regime when filing your ITR if it works out cheaper.
| Income Slab | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹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% |
Standard deduction ₹75,000 · 87A rebate up to ₹12L taxable income (₹12.75L for salaried)
| Income Slab | Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Standard deduction ₹50,000 · 87A rebate up to ₹5L taxable income · 80C/80D/HRA available
A quick, practical guide to slabs, regimes, deductions and ITR forms — written for salaried employees and small business owners in India.
Income tax in India follows a slab-based system. Your total income from salary, business, house property, capital gains and other sources is added, eligible deductions are subtracted, and the slab rates of the chosen regime are applied.
The New Regime offers lower slab rates and a ₹12,00,000 rebate but disallows most deductions. The Old Regime has higher slab rates but lets you claim 80C, 80D, HRA, home-loan interest and more.
Read our detailed Old vs New Regime comparison for breakpoints and examples.
A simple rule of thumb for FY 2025-26:
That makes the effective tax-free income ₹12,75,000 for salaried employees under the New Regime.
Salaried employee earning ₹15,00,000 per year with ₹1,50,000 (80C) + ₹25,000 (80D) deductions:
Result: The New Regime saves ~₹1,05,300. Run your own numbers in the calculator above to see which regime fits you.
Filing an Income Tax Return is mandatory if your gross income exceeds the basic exemption limit. You must also file if you:
Full list: Who must file ITR in FY 2025-26.
Small business owner? Compare Section 44AD vs regular taxation.
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