Key Difference
Old Regime: high rates + many deductions (80C, HRA, home loan). New Regime (FY 2025-26): lower rates with 7 slabs, only ₹75K standard deduction.
New Regime Slabs (Budget 2026)
- Up to ₹4L — 0%
- ₹4L–₹8L — 5%
- ₹8L–₹12L — 10%
- ₹12L–₹16L — 15%
- ₹16L–₹20L — 20%
- ₹20L–₹24L — 25%
- Above ₹24L — 30%
Section 87A Rebate
No tax if taxable income ≤ ₹12 lakh (effective: ~₹12.75L gross with standard deduction).
Who benefits from Old Regime?
If total deductions exceed ₹4.25 lakhs, Old Regime usually saves more.