New vs Old Tax Regime
India offers two income tax regimes. The new regime has lower slab rates but disallows most deductions (80C, HRA, home loan interest, standard insurance, etc.) except the ₹75,000 standard deduction and employer NPS. The old regime has higher slab rates but lets you claim all deductions. In general, the new regime wins for people with few deductions, while the old regime wins if you have a home loan and max out 80C + 80D.
Current Slab Rates
The new regime for FY 2025-26 has slabs of 0% up to ₹4 lakh, 5% ₹4–8 L, 10% ₹8–12 L, 15% ₹12–16 L, 20% ₹16–20 L, 25% ₹20–24 L and 30% above. Full rebate under section 87A makes incomes up to ₹12 lakh effectively tax-free under the new regime. Please verify against the latest Finance Act before filing.
Frequently Asked Questions
Which regime is better for me?
Run your numbers through the calculator above. If your total deductions exceed around ₹3.5–4 lakh, the old regime usually wins.
Is standard deduction available in new regime?
Yes, a ₹75,000 standard deduction is allowed for salaried and pensioners in the new regime.
What is section 87A rebate?
It makes incomes up to ₹12 lakh tax-free under the new regime (subject to current rules).