FY 2025–26 · AY 2026–27
New Regime vs Old Regime
The New Regime is the default. It has wider, lower slabs but almost no deductions. The Old Regime has higher rates but lets you claim HRA, Section 80C, 80D and more. Neither is universally better — it depends on how much you actually invest and claim.
New Tax Regime
| Income slab (₹) | Rate |
|---|---|
| 0 – 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 on salary: ₹75,000
- Rebate u/s 87A: up to ₹60,000 when total income is within ₹12,00,000
- Health & education cess: 4%
- Chapter VI-A deductions: not allowed
- HRA exemption: not allowed
- Self-occupied home loan interest: not allowed
Old Tax Regime
| Income slab (₹) | Rate |
|---|---|
| 0 – 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 on salary: ₹50,000
- Rebate u/s 87A: up to ₹12,500 when total income is within ₹5,00,000
- Health & education cess: 4%
- Chapter VI-A deductions: allowed
- HRA exemption: allowed
- Self-occupied home loan interest: up to ₹2,00,000
Senior citizen exemption limits (Old Regime)
- Below 60 years: first ₹2,50,000 is tax-free
- 60 to 79 years: first ₹3,00,000 is tax-free
- 80 years and above: first ₹5,00,000 is tax-free
The New Regime uses the same slabs for every age group.