Income Tax Slab Comparison
New vs Old Regime · FY 2025-26 (AY 2026-27) · Zero tax up to ₹12 lakh · 87A rebate
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New Regime 2025-26: Zero Tax up to ₹12 Lakh!
Section 87A rebate (₹60,000) + Standard deduction (₹75,000) = Effective tax-free limit ₹12.75L for salaried
Income Details
₹1L₹10,00,000₹50L
Age affects old regime slabs only. New regime same for all.
📋 Old Regime Deductions Not available in New Regime (except NPS 80CCD2)
Total deductions: ₹0
📋 FY 2025-26 Tax Slab Reference
| Income Range | New Regime | Old Regime (< 60yr) |
|---|---|---|
| Up to ₹2,50,000 | 0% | 0% |
| ₹2.5L – ₹3,00,000 | 0% | 5% |
| ₹3L – ₹4,00,000 | 0% | 5% |
| ₹4L – ₹5,00,000 | 5% | 5% |
| ₹5L – ₹8,00,000 | 5% | 20% |
| ₹8L – ₹10,00,000 | 10% | 20% |
| ₹10L – ₹12,00,000 | 10% | 30% |
| ₹12L – ₹16,00,000 | 15% | 30% |
| ₹16L – ₹20,00,000 | 20% | 30% |
| ₹20L – ₹24,00,000 | 25% | 30% |
| Above ₹24,00,000 | 30% | 30% |
+ 4% Health & Education Cess on tax amount in both regimes |
87A Rebate: Zero tax if total income ≤ ₹5L (old) or ≤ ₹12L (new) |
New regime standard deduction: ₹75,000 for salaried/pensioners
New vs Old Tax Regime — Which is Better for You in FY 2025-26?
The new tax regime for FY 2025-26 (AY 2026-27) offers zero income tax for income up to ₹12 lakh after the Section 87A rebate of ₹60,000. Salaried employees additionally get a ₹75,000 standard deduction, making the effective tax-free limit ₹12.75 lakh. The new regime has 7 slabs: 5% (₹4–8L), 10% (₹8–12L), 15% (₹12–16L), 20% (₹16–20L), 25% (₹20–24L), and 30% (above ₹24L). Around 72–88% of taxpayers have now shifted to the new regime.
When is Old Regime Better?
The old regime is beneficial only when your total deductions (HRA + 80C + 80D + home loan interest + NPS) exceed the breakeven deduction point. For a ₹10L income, you need deductions above ₹3.75L for old regime to save more. This calculator shows your exact breakeven and how much each regime saves.
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❓ Frequently Asked Questions
Is there really zero tax on ₹12 lakh income in 2025-26? ▾
Yes, under the new regime. Income up to ₹12 lakh has zero effective tax due to Section 87A rebate of ₹60,000. However, this rebate only applies to normal income taxed at slab rates — special-rate income like capital gains (LTCG/STCG) or crypto doesn't qualify for 87A. For salaried individuals, the additional ₹75,000 standard deduction makes the effective limit ₹12.75 lakh.
What deductions are available in the new tax regime? ▾
Very limited. New regime allows: Standard deduction of ₹75,000 (salaried/pensioners), employer's NPS contribution (80CCD(2)), home loan interest on let-out property only (Section 24b), and a few allowances like conveyance and transport. It does NOT allow HRA, 80C investments, medical insurance (80D), home loan interest on self-occupied property, or 87B/87G donations.
Which regime is better for someone earning ₹15 lakh? ▾
At ₹15 lakh with typical deductions: New regime tax ≈ ₹1,17,000. Old regime with ₹2.35L deductions (50K std ded + 1.5L 80C + 25K 80D + 60K HRA) gives taxable income ≈ ₹12.65L, tax ≈ ₹1,82,500. New regime saves ~₹65,500. Old regime only wins if you add home loan interest of ₹2L+, bringing total deductions to ₹4.35L+.
What is Section 87A rebate and who qualifies? ▾
Section 87A provides a full tax rebate. Under old regime, if total income ≤ ₹5 lakh, the rebate is up to ₹12,500 (making tax zero). Under new regime, if total income ≤ ₹12 lakh, the rebate is up to ₹60,000 (making tax zero). Only resident individuals qualify — not HUFs, companies, or NRIs. Special income (capital gains) taxed at flat rates doesn't benefit.
Can I switch between old and new regime every year? ▾
Salaried individuals can switch every year by informing their employer before April or filing ITR. Self-employed individuals with business income can switch once from old to new, and can switch back once but then cannot switch to new again. The new regime is now the default — you must explicitly opt for old regime each year.
What is surcharge and when does it apply? ▾
Surcharge is an additional tax on top of income tax for high earners. Old regime: 10% surcharge above ₹50L, 15% above ₹1Cr, 25% above ₹2Cr, 37% above ₹5Cr. New regime: Same slabs but maximum surcharge is capped at 25% (so no 37% surcharge on new regime). This makes the new regime even more advantageous for very high earners above ₹5 crore income.