Income Tax Slab Comparison — Old vs New Regime (FY 2025–26)
Choosing between the Old Tax Regime and New Tax Regime can significantly change your take-home salary. Use our quick Income Tax slab comparison tool to understand which regime gives you the lowest income tax liability based on your salary, deductions, and exemptions.
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Income Tax Slab Comparison — Old vs New Regime (FY)
Quickly compare tax under Old and New tax regimes. Enter income and deductions to see which regime suits you better.
Note: This is an estimator. For filing, rely on Form 16 and professional advice. Slabs & standard deduction are configurable in the script comments.
Note: rebate applied for regular slab income only — special-rate incomes (e.g., short-term capital gains at 15%) are excluded from the rebate. This estimator assumes all income is taxed at normal slab rates. For final filing consult Form 16 / Income Tax Dept FAQ.
Understanding Old vs New Tax Regime: A Complete Guide (FY 2025–26)
The Indian income-tax system now allows taxpayers to choose between two different tax regimes. Each regime has its own slab structure, deduction eligibility, and rebate rules. After using the comparison calculator above, the section below helps you understand how the old regime and new regime differ, when each becomes beneficial, and how to calculate taxable income correctly for FY 2025–26.
Old Tax Regime — Structure, Deductions & Rebate Rules (Section 87A)
The Old Tax Regime continues to be beneficial for taxpayers who claim multiple deductions and exemptions. Under this regime, you can claim:
- Standard deduction: ₹50,000 for salaried individuals
- Deductions under Section 80C (up to ₹1,50,000)
- Deductions under Section 80D (medical insurance)
- HRA exemption
- LTA exemption
- Home loan interest (Section 24(b))
- Section 80EE/80EEA (if applicable)
- Education loan interest (80E)
- NPS deductions (80CCD)
- Professional tax
- Other eligible deductions
Old Regime Rebate (Section 87A)
A resident individual is eligible for 100% tax rebate when:
- Taxable income ≤ ₹5,00,000
This rebate makes your total tax liability = ₹0 (except where income includes special-rate items like STCG).
This makes the old regime ideal for:
✔ People with large deductions
✔ Home loan borrowers
✔ High HRA claimers
✔ Individuals whose taxable income is brought below ₹5L via deductions
New Tax Regime — Updated Slabs, Standard Deduction & Relief (FY 2025–26)
The New Tax Regime has now become the default regime and is simpler:
Key benefits:
- Higher standard deduction for salaried: ₹75,000
- Lower tax rates across slabs
- Higher rebate threshold under Budget 2025
- Minimal documentation
- No need to submit proofs for 80C/80D etc.
What is NOT allowed in the New Regime?
❌ No 80C deduction
❌ No 80D deduction
❌ No HRA exemption
❌ No LTA exemption
❌ No home loan interest (for self-occupied property)
❌ No standard deductions except salary SD of ₹75,000
❌ No most traditional exemptions
New Regime Rebate (Budget 2025)
Taxpayers get full rebate if:
- Taxable income ≤ ₹12,00,000
This means zero tax payable, making the regime extremely attractive for salary ranges between ₹6L–₹14L.
Because the standard deduction is ₹75,000, a salaried employee with gross income ≈ ₹12,75,000 effectively pays zero tax under the new regime after SD.
Old vs New Regime — Which Is Better for You?
Choosing the right regime depends on:
1. Your total deductions
If your combined deductions (80C + 80D + HRA + 24b interest + others) exceed ≈ ₹3,50,000, the old regime usually gives lower tax.
2. Your salary slab
Middle-income earners (₹8L–₹14L range) often benefit from the new regime due to the ₹12L rebate.
3. Home loan status
If you claim significant interest deductions (24b), old regime is generally better.
4. HRA component
Taxpayers living in metro cities with high rent typically benefit under the old regime.
5. Job changes & TDS
Employers now apply the new regime by default unless you declare otherwise.
How to Use the Income Tax Slab Comparison Tool
- Enter your annual salary
- Enter other income (interest, rental etc.)
- Add your old regime deductions (80C, 80D etc.)
- Tick salaried to auto-apply standard deduction
- Enable or disable rebate based on eligibility
- View detailed side-by-side tax comparison
- Check the bar chart to visually compare your tax liability
- Choose the regime that gives lowest total tax
Tip: Salaried taxpayers between ₹12–14 lakh should always use this calculator because new regime rebate may completely eliminate their tax liability.
Frequently Asked Questions (FAQ)
1. Which regime is default — old or new?
The New Regime is now the default regime. Employers must follow the new regime unless the employee submits a declaration opting for the old regime.
2. Can I switch regimes every year?
Yes. Individual taxpayers can switch between regimes every assessment year when filing their ITR.
3. Is the new regime always better?
Not always. The old regime may give lower tax if you claim large deductions (80C, HRA, home loan interest etc.).
4. Do I need to give proof of deductions for the new regime?
No proof is required because deductions are not allowed (except standard deduction for salary).
5. Does rebate apply to both regimes?
Yes:
- Old Regime rebate: taxable ≤ ₹5,00,000
- New Regime rebate: taxable ≤ ₹12,00,000 (FY 2025–26)
6. Is home loan interest allowed in the new regime?
No. Section 24(b) home loan interest is not allowed under the new regime for self-occupied property.
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Disclaimer: This calculator provides an estimate only based on the assumptions and slab rules shown on this page (FY 2025–26). It does not replace professional tax advice, official Government notifications, or your employer’s payroll/ITR figures. For final tax computation and filing rely on your Form-16, official Income Tax Dept. guidance and a qualified tax professional.