India Income Tax Guide FY 2025-26: New Regime vs Old Regime — All Sections Explained
Budget 2025 brought the most significant changes to India’s income tax structure in years. The new tax regime now offers zero tax up to ₹12 lakh (₹12.75 lakh for salaried employees including standard deduction), making it the clear winner for most taxpayers with minimal deductions. Yet the old regime remains highly valuable for those who fully utilise Section 80C, 80D, HRA, and home loan interest deductions.
Use our free calculator to compare both regimes instantly: India Income Tax Calculator FY 2025-26 →
New Tax Regime Slabs — FY 2025-26 (Default)
| Income Slab | Tax 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% |
Key new regime benefits 2025: Basic exemption raised to ₹4 lakh · Section 87A rebate ₹60,000 (zero tax ≤ ₹12L) · Standard deduction ₹75,000 for salaried · 30% bracket starts at ₹24L · Surcharge capped at 25%
Old Tax Regime Slabs — FY 2025-26
| Income Slab | Below 60 | Senior (60–80) | Super Senior (80+) |
|---|---|---|---|
| Up to ₹2,50,000 | 0% | 0% | 0% |
| ₹2.5L – ₹5L | 5% | 5% (₹3L+) | 0% |
| ₹5L – ₹10L | 20% | 20% | 20% |
| Above ₹10L | 30% | 30% | 30% |
All Old Regime Deductions — Complete List
Section 80C (Max ₹1,50,000)
EPF, PPF, ELSS, LIC premium, home loan principal, NSC, 5-year tax saving FD, children’s tuition fees, SCSS, ULIP.
NPS Deductions
- 80CCD(1B): ₹50,000 additional NPS self-contribution (over and above 80C limit)
- 80CCD(2): Employer NPS — up to 14% of salary (new regime also allows this)
Section 80D — Health Insurance
Self/spouse/children: up to ₹25,000 | Parents (non-senior): ₹25,000 | Parents (senior citizens): ₹50,000. Combined max ₹1,00,000.
Other Key Sections
- Section 24(b): Home loan interest — ₹2 lakh (self-occupied)
- Section 80EEA: First-time home buyer additional interest — ₹1.5 lakh
- Section 80E: Education loan interest — no limit
- Section 80G: Donations — 50% or 100% depending on institution
- Section 80DD: Disabled dependent — ₹75,000 / ₹1,25,000 (severe)
- Section 80TTA: Savings account interest — ₹10,000 (non-seniors)
- Section 80TTB: All interest income — ₹50,000 (senior citizens only)
- Section 80U: Self disability — ₹75,000 / ₹1,25,000
- HRA Exemption: Min of actual HRA received, rent paid minus 10% basic, 50%/40% of basic (metro/non-metro)
Surcharge Rates FY 2025-26
| Total Income | New Regime | Old Regime |
|---|---|---|
| Up to ₹50 Lakh | NIL | NIL |
| ₹50L – ₹1 Crore | 10% | 10% |
| ₹1Cr – ₹2 Crore | 15% | 15% |
| ₹2Cr – ₹5 Crore | 25% | 25% |
| Above ₹5 Crore | 25% | 37% |
Health and Education Cess: 4% on (Income Tax + Surcharge) for all taxpayers.
Related Calculators
- India Income Tax Calculator FY 2025-26
- Income Tax Calculator
- HRA Exemption Calculator
- Capital Gains Tax Calculator
- TDS Calculator FY 2025-26
- Take Home Salary Calculator
- Income Tax Refund Calculator
- Germany Income Tax Calculator
- US Federal Income Tax Calculator
- UK Income Tax Calculator
Disclaimer: Tax slabs are as per Finance Act 2025 for FY 2025-26 (AY 2026-27). For official filing, use incometax.gov.in or consult a Chartered Accountant.
