The new tax regime for FY 2025-26 offers lower tax rates with fewer deductions. Standard deduction is ₹75,000. Tax slabs: 0-4L: Nil, 4-8L: 5%, 8-12L: 10%, 12-16L: 15%, 16-20L: 20%, 20-24L: 25%, Above 24L: 30%. Income up to ₹12L gets full rebate.
Which regime is better - old or new?▼
If your total deductions (80C, HRA, etc.) exceed ₹3-4 lakhs, the old regime may be better. Otherwise, the new regime with lower rates is typically more beneficial. Use this calculator to compare both.
What is Section 80C deduction?▼
Section 80C allows deductions up to ₹1.5 lakh for investments in PPF, ELSS, life insurance premiums, EPF, home loan principal, etc. This is only available under the old regime.
What is the 4% Health & Education Cess?▼
A 4% cess is charged on total income tax payable. This applies to both old and new regimes and is used to fund health and education initiatives.