New Tax Regime Slabs (2025-26)
New Tax Regime (2025-26)
| Income Range (₹) | 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% |
Old vs New Tax Regime Slabs
Old Tax Regime
| Income | 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% |
New Tax Regime
| Income | 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% |
What is New Tax Regime Calculator ?
Since we know that the new tax regime has been announced by the Indian Government, the main and most discussed thing was that you have to pay 0 tax until 12 lakh.
So, everything has changed now. You now need a new income tax calculator with the new tax slabs. That’s what the New Tax Regime Calculator does.
With this new tax regime calculator, you can easily calculate your tax.
In this new tax regime calculator, there is also a standard deduction section and other rebates, along with explanations on how the rebates will be applicable. Even marginal relief has been added to this calculator. You can easily calculate your income tax with help of this new tax regime calculator.
What is the Disadvantage of New Tax Regime?
There is nothing disadvantage in New Tax Regime.but yeah House Rate Allowence, Transport Allowence, Travel Allowence, Provident Fund, Employee Provident Fund, National Pension Scheme; These types of allowence exmeption you cannot claim that in New Tax Regime, in new tax regime you have to pay taxes on all your Income.
Is HRA allowed in the New Tax Regime?
NO, HRA (House Rent Allownce ) cannot be cliamed under the new tax regime, you will have to pay taxes on your entire income without claming HRA Exemption.
Is 80C applicable in the New Tax Regime?
What does 80C mean? It refers to investments like PPF, life insurance, and other exempted investments that you used to show during ITR filing. However, in the new tax regime, Section 80C (which allows deductions for investments like PPF, life insurance premiums, and EPF) is not applicable.
Is 80D applicable in the New Tax Regime?
Is Section 80D applicable under the new tax regime? The answer is no. Just like Section 80C, Section 80D, which used to provide deductions for premiums paid on health insurance policies, is not applicable under the new tax regime. Indian Goverment has Removed it all. It is true that in Under the old tax regime, you can claim deductions for your health insurance premiums, which helped reduce their taxable income. But in new tax regime, these deductionsare no longer available.
How is 12 Lakh Tax-Free?
This is the game of the 87A rebate. If you calculated your taxes on a 12 lakh income without the Section 87A rebate, it would be 60,000. Okay, so we all know that if our income is up to 12 lakh, then you are eligible for the Section 87A rebate. So, the Section 87A rebate amount deduction is 60,000, which will be deducted from your total taxes.
So, what is the total tax without Section 87A? 60,000, right? So, your taxes without Section 87A are 60,000. Then, minus this 60,000, since your income is up to 12 lakh, and you are eligible for a Section 87A deduction of 60,000.
So, 60,000 minus 60,000, and then your tax becomes zero.
How is 15 Lakh Tax-Free?
No, 15 lakh income is not tax-free. Up to 12 lakh income is tax-free. You have to pay zero taxes on this income. And if you are a salaried employee, then up to 12,75,000 your income would be tax-free because of the standard deduction. You are eligible for the standard deduction.
87A Rebate in New Tax Regime
Under the new tax regime for the financial year 2025–26 (Assessment Year 2026–27), the maximum rebate under Section 87A has been increased to ₹60,000. This rebate is available for resident individuals with a taxable income of up to ₹12 lakh. This means that if your taxable income is ₹12 lakh or less, you can reduce your tax liability by up to ₹60,000, this makes your tax zero,
But in the old tax regime, the 87A rebate amount was 25,000, and the threshold was 7 lakh. This means that if your income was up to 7 lakh, you were eligible for an 87A rebate of 25,000.
From when will the New Tax Regime be Applicable?
New Tax slabs come in effect in April 1, 2025, for the financial year 2025-26.
Marginal Relief Limit in New Tax Regime |
If your income is more than 12 lakh and less then 12 lakh 75 thousands, then Marginal Relief Apply, okay ! then you are eligible for Marginal Relief.
Standard Deduction in New Tax Regime
Standard Deduction in the New Tax Regime is 75,000. This means that if you are a government employee or a salaried person, then you are eligible for the standard deduction. This standard deduction makes your income up to 12,75,000, reduced to zero tax. This is the power of the standard deduction. In the old tax regime, the standard deduction amount was 50,000, but it has been increased by the Government of India to 75,000.