New Tax Regime Slabs (Default) - FY 2025-26
The Union Budget 2025 revised the new regime slabs, offering more tax relief for middle-income taxpayers.
| 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% |
Standard Deduction: ₹75,000 | Section 87A Rebate: Full rebate for taxable income up to ₹12 lakh (effectively zero tax up to ₹12.75 lakh gross income)
Old Tax Regime Slabs - FY 2025-26
| Income Slab | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 - ₹5,00,000 | 5% |
| ₹5,00,001 - ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Standard Deduction: ₹50,000 | Section 87A Rebate: Up to ₹12,500 for taxable income up to ₹5 lakh
Key Differences
- New regime has more slabs (7 vs 4) with lower rates
- New regime standard deduction: ₹75,000 vs ₹50,000 in old
- Old regime allows deductions (80C, 80D, HRA, etc.) which the new does not
- New regime is the default - you must explicitly opt for old regime
4% Health & Education Cess
A 4% cess is levied on the total tax amount (after rebate) under both regimes. This cess funds health and education initiatives.