Income Tax Guide FY 2025-26 — Slabs, Deductions & Regime Comparison
Complete Indian income tax guide for FY 2025-26. Compare old vs new regime, understand deductions, and calculate your tax liability.
New Tax Regime Slabs (FY 2025-26)
The new regime (default from FY 2024-25) offers lower rates but fewer deductions:
| Income Slab | Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 - ₹7,00,000 | 5% |
| ₹7,00,001 - ₹10,00,000 | 10% |
| ₹10,00,001 - ₹12,00,000 | 15% |
| ₹12,00,001 - ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Standard deduction: ₹75,000 (increased from ₹50K) Rebate under 87A: Full tax rebate if taxable income ≤ ₹7 Lakh (zero tax)
Old Tax Regime Slabs
The old regime has higher rates but allows deductions under 80C, 80D, HRA, etc.:
| 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% |
- Key deductions allowed:
- 80C: ₹1.5L (EPF, PPF, ELSS, life insurance, tuition fees)
- 80D: ₹25K-₹1L (health insurance)
- 80CCD(1B): ₹50K (NPS)
- HRA: Actual rent-based calculation
- Section 24: ₹2L (home loan interest)
Old vs New Regime — Which Saves More Tax?
Choose New Regime if: Your total deductions are less than ₹3.75 Lakh Choose Old Regime if: Your total deductions exceed ₹3.75 Lakh
- Example at ₹12 Lakh income:
- New Regime: Tax = ₹71,500 (after ₹75K standard deduction)
- Old Regime (with ₹3L deductions): Tax = ₹87,500
- Old Regime (with ₹4.5L deductions): Tax = ₹57,500 ✓ Winner
If you have a home loan (₹2L interest) + 80C (₹1.5L) + 80D (₹50K) + HRA (₹2L), old regime almost always wins. Use our Income Tax Calculator to compare both regimes with your exact numbers.
Key Deductions Under Old Regime
Section 80C (₹1.5L limit): EPF, PPF, ELSS mutual funds, life insurance premium, children's tuition fees, home loan principal, NSC, SSY, 5-year tax saver FD
- Section 80D (Health Insurance):
- Self + family: ₹25,000
- Parents below 60: ₹25,000
- Parents above 60: ₹50,000
- Max possible: ₹1,00,000
Section 80CCD(1B): Additional ₹50,000 for NPS contribution
Section 80E: Education loan interest (no upper limit, 8 years)
Section 80TTA/80TTB: Savings account interest up to ₹10K (₹50K for seniors)
How to Calculate Your Tax
Step 1: Calculate gross total income (salary + other income) Step 2: Subtract applicable deductions (80C, 80D, HRA, etc.) Step 3: Apply tax slab rates to taxable income Step 4: Add 4% health & education cess Step 5: Subtract TDS already paid Step 6: Pay balance tax or claim refund
Use our Income Tax Calculator to do this automatically — it compares both regimes and tells you which saves more.
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