📈 Tax Regime Comparison
Old Tax Regime
vs New Tax Regime 2025–26
The new regime offers ₹12L zero-tax benefit but drops most deductions. The old regime keeps 80C, HRA, and home loan benefits. Which one saves you more?
Tax Slabs
FY 2025–26 Tax Slabs Compared
🏠 Old Regime Slabs
Up to ₹2,50,000Nil
₹2.5L – ₹5L5%
₹5L – ₹10L20%
Above ₹10L30%
Rebate 87AUp to ₹5L
Deductions80C, HRA, etc.
⚡ New Regime Slabs (Default)
Up to ₹3,00,000Nil
₹3L – ₹7L5%
₹7L – ₹10L10%
₹10L – ₹12L15%
₹12L – ₹16L20%
₹16L – ₹20L25%
Above ₹20L30%
Rebate 87AUp to ₹12L ↑
Feature Comparison
12 Key Parameters
| Parameter | Old Regime | New Regime 2025–26 |
|---|---|---|
| Default Regime | ✗ Not default (must opt in) | ✓ Default from FY 2024–25 |
| Basic Exemption | ₹2.5L (₹3L for 60+, ₹5L for 80+) | ₹3L for all |
| Section 87A Rebate | Income up to ₹5L → zero tax | Income up to ₹12L → zero tax |
| Section 80C (₹1.5L limit) | Available (PPF, ELSS, LIC, etc.) | Not available |
| HRA Exemption | Available for salaried in rented homes | Not available |
| Home Loan (Sec 24b) | ₹2L deduction on interest | Not available |
| Standard Deduction | ₹50,000 | ₹75,000 (higher) |
| NPS Deduction 80CCD(2) | Available | Available (14% for govt, 10% private) |
| Leave Travel Allowance | Exempt (conditions apply) | Not exempt |
| Medical Ins. 80D | ₹25,000 – ₹50,000 deduction | Not available |
| Surcharge (above ₹5Cr) | 37% | Capped at 25% |
| Best For | High deduction claimers (80C + HRA + home loan) | Those with fewer deductions or income ≤₹12L |
Examples
Tax Comparison at Different Income Levels
Gross Salary: ₹8,00,000
Old regime (after 80C+HRA)~₹36,400
New regime (std. ded. ₹75K)₹0 (87A rebate)
✓ New Regime saves more
Gross Salary: ₹15,00,000
Old regime (80C+HRA+24b)~₹1,54,700
New regime~₹1,30,000
✓ New Regime saves more
Gross Salary: ₹20,00,000
Old regime (max deductions)~₹2,52,520
New regime~₹2,96,400
✓ Old Regime saves more
Gross Salary: ₹50,00,000
Old regime (max deductions)~₹13,72,160
New regime (lower surcharge)~₹13,04,800
✓ New Regime saves more (surcharge)
*Illustrative calculations. Actual tax depends on individual deduction claims. Consult a CA for precise computation.
🏠 Old Regime
Pros
- 80C deductions push taxable income down significantly
- HRA exemption — large benefit for metro renters
- Home loan interest (₹2L) saves up to ₹60,000 in tax
- Medical insurance (80D) deduction available
Cons
- Complex — requires documenting and proving deductions
- Locks money in illiquid instruments (ELSS, PPF)
- Higher slab rates for mid-income earners
⚡ New Regime 2025–26
Pros
- Zero tax up to ₹12 lakh (87A rebate)
- Simple — no need to track deductions
- Lower surcharge (max 25%) benefits HNIs
- Higher standard deduction (₹75,000)
Cons
- No 80C — can't claim LIC, PPF, ELSS deductions
- No HRA — renters in metro cities lose out
- Home loan interest deduction not available
🏠 Choose Old Regime if…
- You claim 80C fully (₹1.5L) through PPF/ELSS/LIC
- You pay significant rent and claim HRA
- You have a home loan with >₹2L interest annually
- You have 80D medical insurance premiums for family
- Combined deductions exceed ₹3.75 lakh
⚡ Choose New Regime if…
- Your income is up to ₹12 lakh (zero tax benefit)
- You have minimal investment / deduction claims
- You prefer simplicity over tax-planning complexity
- You are a HNI with income above ₹5 crore (surcharge benefit)
- You do not pay rent or have a home loan
Which Regime Saves You More? Get a Free Calculation
Our CAs will run an exact comparison based on your salary, investments, and deductions — and tell you which regime to opt in FY 2025–26.
◆ Available in 71 Cities
Income Tax Return Filing Near You
Expert CA/CS assistance for income tax return filing across India. Click your city for local details.
→
New Delhi
→
Mumbai
→
Bengaluru (Bangalore)
→
Hyderabad
→
Chennai
→
Kolkata
→
Pune
→
Ahmedabad
→
Noida (UP)
→
Gurgaon (Gurugram)
→
Jaipur
→
Lucknow
→
Chandigarh
→
Surat
→
Kochi (Cochin)
→
Faridabad
→
Ghaziabad
→
Greater Noida
→
Panipat
→
Sonipat
→
Manesar (IMT)
→
Dharuhera
→
Mathura
→
Palwal
→
Agra
→
Kosi Kalan
→
Aligarh
→
Khair
→
Jewar (Noida International Airport)
→
Kanpur
→
Varanasi (Kashi)
→
Prayagraj (Allahabad)
→
Meerut
→
Bareilly
→
Moradabad
→
Gorakhpur
→
Firozabad
→
Saharanpur
→
Muzaffarnagar
→
Bulandshahr
→
Hapur
→
Karnal
→
Kurukshetra
→
Ambala
→
Hisar
→
Rohtak
→
Yamunanagar
→
Rewari
→
Bhiwani
→
Jodhpur
→
Udaipur
→
Kota
→
Ajmer
→
Bikaner
→
Ludhiana
→
Amritsar
→
Jalandhar
→
Patiala
→
Mohali (SAS Nagar)
→
Bathinda
→
Dehradun
→
Haridwar
→
Rudrapur
→
Shimla
→
Solan (Baddi-Barotiwala-Nalagarh)
→
Bhopal
→
Indore
→
Gwalior
→
Jammu
→
Srinagar
→
Panchkula