Income Tax under the New Regime (FY 2025–26)

The New Regime at a Glance

Since FY 2023–24, the new tax regime is the default in India. It offers simpler slabs and a ₹75,000 standard deduction for salaried taxpayers, but removes most exemptions (80C, HRA, LTA, etc.) available under the old regime.

FY 2025–26 Slab Structure

| Taxable Income | Rate | |---|---| | Up to ₹4,00,000 | 0% | | ₹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% |

Plus: Health and Education Cess of 4% on the tax computed.

Rebate under Section 87A

If your taxable income (after standard deduction) is ≤ ₹12 lakh, you pay zero tax under the new regime — the rebate can go up to ₹60,000.

When New Beats Old

The new regime wins for most salaried individuals unless you have:

Related

Use our Income Tax Calculator to see your exact liability.