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.
FY 2026-27 uses the same slabs as FY 2025-26 as per current law. Will be updated if Budget 2026 changes rates.
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.
Our free Income Tax Calculator helps salaried employees, freelancers, business owners, pensioners and NRIs estimate their tax liability for Financial Year 2025-26 (Assessment Year 2026-27). Updated as per the Union Budget 2025 announcements, the calculator compares the Old Tax Regime and the New Tax Regime side-by-side and tells you which one saves more money based on your salary, deductions, HRA, NPS contribution, home loan interest, capital gains and other income.
The Union Budget 2025 made the New Tax Regime significantly more attractive. Salaried individuals now pay zero income tax up to ₹12,75,000 of total income (₹12,00,000 basic exemption + ₹75,000 standard deduction). The Section 87A rebate threshold was raised to ₹12,00,000 of taxable income, and marginal relief applies between ₹12,00,000 and ₹12,75,000 so that a small income increase does not push you into a disproportionately higher tax. The revised slabs are 0% up to ₹4L, 5% from ₹4-8L, 10% from ₹8-12L, 15% from ₹12-16L, 20% from ₹16-20L, 25% from ₹20-24L and 30% above ₹24L.
The Old Regime continues to allow popular deductions including 80C (up to ₹1.5L), 80D medical insurance (up to ₹1L for senior citizens), HRA exemption, LTA, home loan interest (₹2L on self-occupied property), 80E education loan interest, 80G donations and NPS contributions. If you claim deductions of roughly ₹4,00,000 or more in a year, the Old Regime usually wins. If you are early in your career, do not own a home, do not have high insurance premiums and prefer simplicity, the New Regime is almost always better after Budget 2025. Government employees in Jammu, Srinagar and across India often benefit from the New Regime due to NPS employer contribution under Section 80CCD(2), which is allowed even in the new regime.
A surcharge is applied if your taxable income crosses ₹50,00,000 — 10% above ₹50L, 15% above ₹1Cr, 25% above ₹2Cr and 37% above ₹5Cr (capped at 25% under the New Regime). A uniform 4% health & education cess is then added on the total of income tax plus surcharge. Our calculator applies all of this automatically.
We are a Jammu & Kashmir based tax consultancy trusted by over 15,000 salaried professionals, traders, freelancers and small businesses across India. Our team of qualified CAs and tax practitioners files ITR-1, ITR-2, ITR-3 and ITR-4 returns at transparent prices starting from ₹799. Whether you are a Jammu government employee, a Srinagar hotelier, an apple trader from Sopore or an IT freelancer working with foreign clients, we ensure every eligible deduction is claimed and your return is filed error-free before the due date.
Based in Jammu — trusted by 15,000+ salaried professionals and businesses across India.
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