{"id":30830,"date":"2025-12-29T00:57:07","date_gmt":"2025-12-28T19:27:07","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=30830"},"modified":"2026-01-23T01:29:42","modified_gmt":"2026-01-22T19:59:42","slug":"comparison-of-new-vs-old-tax-regime-for-fy-2025-26","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/comparison-of-new-vs-old-tax-regime-for-fy-2025-26\/","title":{"rendered":"Comparison of New Vs. Old tax regime for FY 2025-26"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69db69c523ff8\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69db69c523ff8\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/comparison-of-new-vs-old-tax-regime-for-fy-2025-26\/#Comparison_of_the_new_tax_regime_vs_the_old_tax_regime_for_FY_2025-26\" title=\"Comparison of the new tax regime vs. the old tax regime for FY 2025-26\">Comparison of the new tax regime vs. the old tax regime for FY 2025-26<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/comparison-of-new-vs-old-tax-regime-for-fy-2025-26\/#Income_Tax_Slab_Rates_FY_2025-26\" title=\"Income Tax Slab Rates (FY 2025-26)\">Income Tax Slab Rates (FY 2025-26)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/comparison-of-new-vs-old-tax-regime-for-fy-2025-26\/#Slabs_under_Old_Tax_Regime\" title=\"Slabs under\u00a0Old Tax Regime\">Slabs under\u00a0Old Tax Regime<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/comparison-of-new-vs-old-tax-regime-for-fy-2025-26\/#Slabs_under_New_Tax_Regime_Revised_for_FY_2025-26\" title=\"Slabs under\u00a0New Tax Regime (Revised for FY 2025-26)\">Slabs under\u00a0New Tax Regime (Revised for FY 2025-26)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/comparison-of-new-vs-old-tax-regime-for-fy-2025-26\/#Standard_Deduction_Rebate\" title=\"Standard Deduction &amp; Rebate\">Standard Deduction &amp; Rebate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/comparison-of-new-vs-old-tax-regime-for-fy-2025-26\/#Standard_Deduction\" title=\"Standard Deduction\">Standard Deduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/comparison-of-new-vs-old-tax-regime-for-fy-2025-26\/#Section_87A_Rebate\" title=\"Section 87A Rebate\">Section 87A Rebate<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/comparison-of-new-vs-old-tax-regime-for-fy-2025-26\/#Deductions_Exemptions_Whats_Allowed\" title=\"Deductions &amp; Exemptions: What\u2019s Allowed?\">Deductions &amp; Exemptions: What\u2019s Allowed?<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/comparison-of-new-vs-old-tax-regime-for-fy-2025-26\/#Old_Tax_Regime_Rich_in_Deductions\" title=\"Old Tax Regime (Rich in Deductions)\">Old Tax Regime (Rich in Deductions)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/comparison-of-new-vs-old-tax-regime-for-fy-2025-26\/#New_Tax_Regime_Few_Deductions\" title=\"New Tax Regime (Few Deductions)\u00a0\">New Tax Regime (Few Deductions)\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/comparison-of-new-vs-old-tax-regime-for-fy-2025-26\/#Key_Differences_Practical_Points_Old_Tax_Regime_New_Tax_Regime\" title=\"Key Differences &amp; Practical Points Old Tax Regime &amp; New Tax Regime\">Key Differences &amp; Practical Points Old Tax Regime &amp; New Tax Regime<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/comparison-of-new-vs-old-tax-regime-for-fy-2025-26\/#Age_Other_Considerations\" title=\"Age &amp; Other Considerations\">Age &amp; Other Considerations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/comparison-of-new-vs-old-tax-regime-for-fy-2025-26\/#Choosing_Between_the_Two%E2%80%94Practical_Rules_of_Thumb\" title=\"Choosing Between the Two\u2014Practical Rules of Thumb\">Choosing Between the Two\u2014Practical Rules of Thumb<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/comparison-of-new-vs-old-tax-regime-for-fy-2025-26\/#New_Tax_Regime_Whats_Allowed_vs_Whats_Not\" title=\"New Tax Regime: What&#8217;s Allowed vs. What&#8217;s Not\">New Tax Regime: What&#8217;s Allowed vs. What&#8217;s Not<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/comparison-of-new-vs-old-tax-regime-for-fy-2025-26\/#Goodbye_Assessment_Year_Welcome_tax_year\" title=\"Goodbye, Assessment Year. Welcome, tax year.\u00a0\">Goodbye, Assessment Year. Welcome, tax year.\u00a0<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/carajput.com\/blog\/comparison-of-new-vs-old-tax-regime-for-fy-2025-26\/#New_Tax_Regime_FY_2025-26_Lower_Rates_Fewer_Deductions\" title=\"New Tax Regime (FY 2025-26): Lower Rates, Fewer Deductions\">New Tax Regime (FY 2025-26): Lower Rates, Fewer Deductions<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/carajput.com\/blog\/comparison-of-new-vs-old-tax-regime-for-fy-2025-26\/#%F0%9F%94%B9_Slabs_under_the_New_Regime\" title=\"\ud83d\udd39 Slabs under the New Regime\">\ud83d\udd39 Slabs under the New Regime<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/carajput.com\/blog\/comparison-of-new-vs-old-tax-regime-for-fy-2025-26\/#What_You_Give_Up_in_the_New_Regime\" title=\"What You Give Up in the New Regime\">What You Give Up in the New Regime<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/carajput.com\/blog\/comparison-of-new-vs-old-tax-regime-for-fy-2025-26\/#What_Still_Continues\" title=\"What Still Continues\">What Still Continues<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/carajput.com\/blog\/comparison-of-new-vs-old-tax-regime-for-fy-2025-26\/#The_Real_Question_Isnt_%E2%80%9CWhich_Is_Better%E2%80%9D\" title=\"The Real Question Isn\u2019t \u201cWhich Is Better?\u201d\">The Real Question Isn\u2019t \u201cWhich Is Better?\u201d<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-30831\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/12\/inew-old.-.jpg\" alt=\"Comparison of new tax regime vs. old tax regime for FY 2025-26\" width=\"835\" height=\"453\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/12\/inew-old.-.jpg 778w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/12\/inew-old.--300x163.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/12\/inew-old.--768x417.jpg 768w\" sizes=\"(max-width: 835px) 100vw, 835px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Comparison_of_the_new_tax_regime_vs_the_old_tax_regime_for_FY_2025-26\"><\/span><span style=\"color: #000080;\"><strong>Comparison of the new tax regime vs. the old tax regime for FY 2025-26<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"244\" data-end=\"291\">Comparison of the new tax regime vs. the old tax regime for FY 2025-26, including income slabs, tax rates, and allowed deductions\/exemptions.<\/p>\n<h3 data-start=\"244\" data-end=\"291\"><span class=\"ez-toc-section\" id=\"Income_Tax_Slab_Rates_FY_2025-26\"><\/span><span style=\"color: #000080;\"><strong data-start=\"250\" data-end=\"291\">Income Tax Slab Rates (FY 2025-26)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"Slabs_under_Old_Tax_Regime\"><\/span><span style=\"color: #000080;\"><strong>Slabs under\u00a0<\/strong><strong data-start=\"300\" data-end=\"318\">Old Tax Regime<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"319\" data-end=\"529\">\n<li data-start=\"319\" data-end=\"346\">\n<p data-start=\"321\" data-end=\"346\">Up to INR 2,50,000 \u2013 Nil<\/p>\n<\/li>\n<li data-start=\"347\" data-end=\"379\">\n<p data-start=\"349\" data-end=\"379\">INR 2,50,001 \u2013 INR 5,00,000 \u2013 5%<\/p>\n<\/li>\n<li data-start=\"380\" data-end=\"414\">\n<p data-start=\"382\" data-end=\"414\">INR 5,00,001 \u2013 INR 10,00,000 \u2013 20%<\/p>\n<\/li>\n<li data-start=\"415\" data-end=\"529\">\n<p data-start=\"417\" data-end=\"529\">Above INR 10,00,000 \u2013 30%<br data-start=\"443\" data-end=\"446\" \/><em data-start=\"446\" data-end=\"491\">Standard deductions &amp; exemptions apply here<\/em><\/p>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Slabs_under_New_Tax_Regime_Revised_for_FY_2025-26\"><\/span><span style=\"color: #000080;\"><strong>Slabs under\u00a0<\/strong><strong data-start=\"538\" data-end=\"581\">New Tax Regime (Revised for FY 2025-26)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"___i31lg00 f10pi13n f14t3ns0 f1nbblvp fat0sn4 f1ov4xf1 fekwl8i f1lmfglv f1oz7aqm f1abmfm4 f1w619qj f16h0jq8\">\n<table class=\"___1hm93bs f1ddd56o f16vktn6 f1enuhaj fdclmfp f1ev3kgc ftgm304 f1uinfot fibjyge fvueend f9yszdx f1fu4s3n f3l3pb3 f1s2k7dp f8fmt76 fjvbh62 fysh76l fic4ptz f1yenhzu f1yn6nvh f14tj6oe f1jq587y f1el8yx3 f1pymoxg f1ofu761 fe6itr f7coize f1794535 f70r78m f4zgifc fk1v6el f16pyhcb fo436u6 fzy4j18 fc43013 f1hmrcvb fc4t9fq fgp09rh fjnyn6r\" style=\"height: 339px;\" width=\"827\">\n<tbody>\n<tr>\n<th><strong>Income (INR lakh)<\/strong><\/th>\n<th><strong>Tax Rate<\/strong><\/th>\n<\/tr>\n<tr>\n<td>0 \u2013 4<\/td>\n<td>Nil<\/td>\n<\/tr>\n<tr>\n<td>4 \u2013 8<\/td>\n<td>5%<\/td>\n<\/tr>\n<tr>\n<td>8 \u2013 12<\/td>\n<td>10%<\/td>\n<\/tr>\n<tr>\n<td>12 \u2013 16<\/td>\n<td>15%<\/td>\n<\/tr>\n<tr>\n<td>16 \u2013 20<\/td>\n<td>20%<\/td>\n<\/tr>\n<tr>\n<td>20 \u2013 24<\/td>\n<td>25%<\/td>\n<\/tr>\n<tr>\n<td>Above 24<\/td>\n<td>30%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>Note: Enhanced rebate under Section 87A: For individuals with business and professional income up to INR 12 lakh (INR 12.75 lakh for salaried), no tax payable. (Source: Budget 2025 FAQs.). <em data-start=\"817\" data-end=\"891\">Structured to be more gradual and beneficial for middle-income taxpayers<\/em><\/p>\n<h3 data-start=\"936\" data-end=\"976\"><span class=\"ez-toc-section\" id=\"Standard_Deduction_Rebate\"><\/span><span style=\"color: #000080;\"><strong data-start=\"942\" data-end=\"976\">Standard Deduction &amp; Rebate<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3 data-start=\"978\" data-end=\"1007\"><span class=\"ez-toc-section\" id=\"Standard_Deduction\"><\/span><span style=\"color: #000080;\"><strong data-start=\"985\" data-end=\"1007\">Standard Deduction<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"1008\" data-end=\"1192\">\n<li data-start=\"1008\" data-end=\"1097\">\n<p data-start=\"1010\" data-end=\"1097\">Old Regime: INR 50,000 (for salaried\/pensioners)<\/p>\n<\/li>\n<li data-start=\"1098\" data-end=\"1192\">\n<p data-start=\"1100\" data-end=\"1192\">New Regime: INR 75,000 (enhanced from FY 2025-26)<\/p>\n<\/li>\n<\/ul>\n<h3 data-start=\"1194\" data-end=\"1223\"><span class=\"ez-toc-section\" id=\"Section_87A_Rebate\"><\/span><span style=\"color: #000080;\"><strong data-start=\"1201\" data-end=\"1223\">Section 87A Rebate<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"1224\" data-end=\"1486\">\n<li data-start=\"1224\" data-end=\"1302\">\n<p data-start=\"1226\" data-end=\"1302\">Old Regime: Rebate up to INR 12,500 available if taxable income \u2264 INR 5 lakh<\/p>\n<\/li>\n<li data-start=\"1303\" data-end=\"1486\">\n<p data-start=\"1305\" data-end=\"1486\">New Regime: Rebate up to INR 60,000 available if taxable income \u2264 INR 12 lakh, effectively zero tax up to INR 12 lakh for many taxpayers<\/p>\n<\/li>\n<\/ul>\n<h2 data-start=\"1493\" data-end=\"1546\"><span class=\"ez-toc-section\" id=\"Deductions_Exemptions_Whats_Allowed\"><\/span><span style=\"color: #000080;\"><strong data-start=\"1499\" data-end=\"1546\">Deductions &amp; Exemptions: What\u2019s Allowed?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 data-start=\"1548\" data-end=\"1593\"><span class=\"ez-toc-section\" id=\"Old_Tax_Regime_Rich_in_Deductions\"><\/span><span style=\"color: #000080;\"><strong data-start=\"1554\" data-end=\"1593\">Old Tax Regime (Rich in Deductions)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"1594\" data-end=\"1661\">Allows numerous popular deductions that help reduce taxable income Section 80C (up to INR 1.5 lakh)\u2014ELSS, PPF, EPF, life insurance, etc. Section 80D\u2014Health insurance premiums, HRA exemption, LTA (Leave Travel Allowance), Home loan interest deduction (Section 24), other Chapter VI-A deductions (80E, 80G, etc.). Standard deduction: INR 50,000\/-. These can significantly lower gross taxable income.<\/p>\n<h3 data-start=\"2076\" data-end=\"2117\"><span class=\"ez-toc-section\" id=\"New_Tax_Regime_Few_Deductions\"><\/span><span style=\"color: #000080;\"><strong data-start=\"2082\" data-end=\"2117\">New Tax Regime (Few Deductions)\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"2118\" data-end=\"2170\">Most exemptions\/deductions are not allowed, such as HRA, LTA, Sections 80C &amp; 80D, and home loan interest (except in certain cases). The main available benefits are the standard deduction of INR 75,000 and the employer\u2019s NPS contribution (80CCD(2)), etc. The new regime trades deductions for simpler slabs and lower rates.<\/p>\n<p data-start=\"2118\" data-end=\"2170\">The new regime offers lower tax rates but removes most deductions and exemptions, except employer NPS contributions and retirement benefits. The old regime retains deductions under 80C and 80D and exemptions like HRA, making it beneficial for taxpayers with significant investments and insurance.<\/p>\n<h3 data-start=\"2487\" data-end=\"2534\"><span class=\"ez-toc-section\" id=\"Key_Differences_Practical_Points_Old_Tax_Regime_New_Tax_Regime\"><\/span><span style=\"color: #000080;\"><strong data-start=\"2493\" data-end=\"2534\">Key Differences &amp; Practical Points Old Tax Regime &amp; New Tax Regime<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"TyagGW_tableContainer\">\n<div class=\"group TyagGW_tableWrapper flex w-fit flex-col-reverse\" tabindex=\"-1\">\n<table class=\"w-fit min-w-(--thread-content-width)\" style=\"height: 228px;\" width=\"843\" data-start=\"2536\" data-end=\"3221\">\n<thead data-start=\"2536\" data-end=\"2589\">\n<tr data-start=\"2536\" data-end=\"2589\">\n<th data-start=\"2536\" data-end=\"2546\" data-col-size=\"sm\"><span style=\"color: #000080;\">Feature<\/span><\/th>\n<th data-start=\"2546\" data-end=\"2567\" data-col-size=\"sm\"><span style=\"color: #000080;\"><strong data-start=\"2548\" data-end=\"2566\">Old Tax Regime<\/strong><\/span><\/th>\n<th data-start=\"2567\" data-end=\"2589\" data-col-size=\"md\"><span style=\"color: #000080;\"><strong data-start=\"2569\" data-end=\"2587\">New Tax Regime<\/strong><\/span><\/th>\n<\/tr>\n<\/thead>\n<tbody data-start=\"2645\" data-end=\"3221\">\n<tr data-start=\"2645\" data-end=\"2744\">\n<td data-start=\"2645\" data-end=\"2670\" data-col-size=\"sm\"><strong data-start=\"2647\" data-end=\"2669\">Tax slab structure<\/strong><\/td>\n<td data-start=\"2670\" data-end=\"2680\" data-col-size=\"sm\">3 slabs<\/td>\n<td data-col-size=\"md\" data-start=\"2680\" data-end=\"2744\">7 slabs (more gradual)<\/td>\n<\/tr>\n<tr data-start=\"2745\" data-end=\"2867\">\n<td data-start=\"2745\" data-end=\"2770\" data-col-size=\"sm\"><strong data-start=\"2747\" data-end=\"2769\">Standard deduction<\/strong><\/td>\n<td data-start=\"2770\" data-end=\"2818\" data-col-size=\"sm\">INR 50,000<\/td>\n<td data-start=\"2818\" data-end=\"2867\" data-col-size=\"md\">INR\u00a0 75,000<\/td>\n<\/tr>\n<tr data-start=\"2868\" data-end=\"2959\">\n<td data-start=\"2868\" data-end=\"2893\" data-col-size=\"sm\"><strong data-start=\"2870\" data-end=\"2892\">Section 87A rebate<\/strong><\/td>\n<td data-col-size=\"sm\" data-start=\"2893\" data-end=\"2905\">\u2264 INR 5 lakh<\/td>\n<td data-col-size=\"md\" data-start=\"2905\" data-end=\"2959\">\u2264 INR\u00a0 12 lakh<\/td>\n<\/tr>\n<tr data-start=\"2960\" data-end=\"3067\">\n<td data-start=\"2960\" data-end=\"2994\" data-col-size=\"sm\"><strong data-start=\"2962\" data-end=\"2993\">Major deductions\/exemptions<\/strong><\/td>\n<td data-start=\"2994\" data-end=\"3004\" data-col-size=\"sm\">Allowed<\/td>\n<td data-start=\"3004\" data-end=\"3067\" data-col-size=\"md\">Largely not allowed<\/td>\n<\/tr>\n<tr data-start=\"3068\" data-end=\"3129\">\n<td data-start=\"3068\" data-end=\"3093\" data-col-size=\"sm\"><strong data-start=\"3070\" data-end=\"3092\">Ease of compliance<\/strong><\/td>\n<td data-col-size=\"sm\" data-start=\"3093\" data-end=\"3104\">Moderate<\/td>\n<td data-col-size=\"md\" data-start=\"3104\" data-end=\"3129\">High (simpler filing)<\/td>\n<\/tr>\n<tr data-start=\"3130\" data-end=\"3221\">\n<td data-start=\"3130\" data-end=\"3145\" data-col-size=\"sm\"><strong data-start=\"3132\" data-end=\"3144\">Best for<\/strong><\/td>\n<td data-start=\"3145\" data-end=\"3172\" data-col-size=\"sm\">High deduction claimants<\/td>\n<td data-start=\"3172\" data-end=\"3221\" data-col-size=\"md\">Salaried \/ middle class with fewer deductions<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<h3 data-start=\"3228\" data-end=\"3267\"><span class=\"ez-toc-section\" id=\"Age_Other_Considerations\"><\/span><span style=\"color: #000080;\"><strong data-start=\"3234\" data-end=\"3267\">Age &amp; Other Considerations<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"3271\" data-end=\"3506\">In the old regime, senior\/super senior citizens have higher basic exemption limits (e.g., INR 3 lakh and INR 5 lakh) whereas the new regime treats all ages uniformly with nil tax up to INR 4 lakh<\/p>\n<h3 data-start=\"3515\" data-end=\"3579\"><span class=\"ez-toc-section\" id=\"Choosing_Between_the_Two%E2%80%94Practical_Rules_of_Thumb\"><\/span><span style=\"color: #000080;\"><strong data-start=\"3521\" data-end=\"3579\">Choosing Between the Two\u2014Practical Rules of Thumb<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li data-start=\"3581\" data-end=\"3624\">New Tax Regime May Be Better If the taxpayer does\u00a0not have substantial deductions\/exemptions, and the taxpayer&#8217;s taxable income is \u2264 \u20b912 lakh (zero tax after rebate), and the taxpayer prefers\u00a0simplicity over tracking multiple proofs<\/li>\n<li data-start=\"3802\" data-end=\"3845\">The old tax regime may be better if the taxpayer has\u00a0large deductions (80C, 80D, HRA, home loan interest, etc.). Taxpayer total deductions &gt; break-even point where old regime tax becomes lower even with higher slabs &amp; taxpayers are strategic with long-term tax planning.\u00a0Analysts often compute the \u201cbreak-even deduction limit\u201d to decide which regime saves more tax.<\/li>\n<li data-start=\"4251\" data-end=\"4455\">The new tax regime (with enhanced slabs, higher standard deduction, and bigger rebate) is more attractive for middle-income taxpayers with fewer deductions.\u00a0 The old tax regime still shines for taxpayers with substantial deductions\/exemptions, particularly through investment and housing benefits.<\/li>\n<li>The new regime may be better if the taxpayer\u00a0has few deductions\/exemptions.,\u00a0Taxable income \u2264 INR 12 lakh (zero tax after rebate). Prefers simplicity over tracking proofs.<\/li>\n<li>Old regime may be better if the taxpayer\u00a0has large deductions (80C, 80D, HRA, home loan interest). &amp;\u00a0Total deductions exceed the break-even point where the old regime tax becomes lower.<\/li>\n<li>New regime: Attractive for middle-income taxpayers with fewer deductions (simpler, higher rebate, enhanced standard deduction).\u00a0Old regime: Best for taxpayers with significant deductions and housing benefits.<\/li>\n<\/ul>\n<div>\n<h3><span class=\"ez-toc-section\" id=\"New_Tax_Regime_Whats_Allowed_vs_Whats_Not\"><\/span><span style=\"color: #000080;\"><strong>New Tax Regime: What&#8217;s Allowed vs. What&#8217;s Not<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"___i31lg00 f10pi13n f14t3ns0 f1nbblvp fat0sn4 f1ov4xf1 fekwl8i f1lmfglv f1oz7aqm f1abmfm4 f1w619qj f16h0jq8\">\n<table class=\"___1hm93bs f1ddd56o f16vktn6 f1enuhaj fdclmfp f1ev3kgc ftgm304 f1uinfot fibjyge fvueend f9yszdx f1fu4s3n f3l3pb3 f1s2k7dp f8fmt76 fjvbh62 fysh76l fic4ptz f1yenhzu f1yn6nvh f14tj6oe f1jq587y f1el8yx3 f1pymoxg f1ofu761 fe6itr f7coize f1794535 f70r78m f4zgifc fk1v6el f16pyhcb fo436u6 fzy4j18 fc43013 f1hmrcvb fc4t9fq fgp09rh fjnyn6r\">\n<tbody>\n<tr>\n<th><span style=\"color: #000080;\"><strong>Category<\/strong><\/span><\/th>\n<th><span style=\"color: #000080;\"><strong>Old Regime<\/strong><\/span><\/th>\n<th><span style=\"color: #000080;\"><strong>New Regime<\/strong><\/span><\/th>\n<\/tr>\n<tr>\n<th scope=\"row\"><strong>Deductions<\/strong><\/th>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td>Section 80C (PPF, ELSS, life insurance, etc.)<\/td>\n<td>Up to \u20b91.5 lakh<\/td>\n<td>Not allowed<\/td>\n<\/tr>\n<tr>\n<td>Own contribution to NPS u\/s 80CCD(1B)<\/td>\n<td>INR 50,000*<\/td>\n<td>Not allowed<\/td>\n<\/tr>\n<tr>\n<td>Employer contribution to NPS u\/s 80CCD(2)<\/td>\n<td>Govt employees \u2013 14% of basic pay + DA; Others \u2013 10%<\/td>\n<td>14% for all<\/td>\n<\/tr>\n<tr>\n<td>Medical insurance premium u\/s 80D<\/td>\n<td>Allowed<\/td>\n<td>Not allowed<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\"><strong>Exemptions<\/strong><\/th>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td>House rent allowance<\/td>\n<td>Allowed<\/td>\n<td>Not allowed<\/td>\n<\/tr>\n<tr>\n<td>Gratuity, leave encashment, VRS, retirement benefits<\/td>\n<td>Allowed<\/td>\n<td>Allowed<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>Note: Over and above what is u\/s 80C. This is not an exhaustive list. Source: BDO India.<\/p>\n<h3 data-start=\"665\" data-end=\"713\"><span class=\"ez-toc-section\" id=\"Goodbye_Assessment_Year_Welcome_tax_year\"><\/span><span style=\"color: #000080;\"><strong>Goodbye, Assessment Year. Welcome, tax year.\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-31024\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/12\/Goodbye-Assessment-Year-.jpg\" alt=\"Goodbye Assessment Year\" width=\"847\" height=\"449\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/12\/Goodbye-Assessment-Year-.jpg 800w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/12\/Goodbye-Assessment-Year--300x159.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/12\/Goodbye-Assessment-Year--768x407.jpg 768w\" sizes=\"(max-width: 847px) 100vw, 847px\" \/><\/p>\n<p data-start=\"665\" data-end=\"713\">Effective 1 April 2026, India turns the page on the Income-tax Act, 1961 and ushers in the Income-tax Act, 2025\u2014the most significant overhaul of direct tax law in six decades.<\/p>\n<h2 data-start=\"181\" data-end=\"246\"><span class=\"ez-toc-section\" id=\"New_Tax_Regime_FY_2025-26_Lower_Rates_Fewer_Deductions\"><\/span><span style=\"color: #000080;\"><strong data-start=\"184\" data-end=\"246\">New Tax Regime (FY 2025-26): Lower Rates, Fewer Deductions<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-31027\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/12\/New-Tax-Regime-FY-2025-26.jpg\" alt=\"New Tax Regime (FY 2025-26)\" width=\"849\" height=\"462\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/12\/New-Tax-Regime-FY-2025-26.jpg 812w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/12\/New-Tax-Regime-FY-2025-26-300x163.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/12\/New-Tax-Regime-FY-2025-26-768x418.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/12\/New-Tax-Regime-FY-2025-26-800x435.jpg 800w\" sizes=\"(max-width: 849px) 100vw, 849px\" \/><\/p>\n<h3 data-start=\"248\" data-end=\"285\"><span class=\"ez-toc-section\" id=\"%F0%9F%94%B9_Slabs_under_the_New_Regime\"><\/span><span style=\"color: #000080;\">\ud83d\udd39 <strong data-start=\"255\" data-end=\"285\">Slabs under the New Regime<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"286\" data-end=\"450\">\n<li data-start=\"286\" data-end=\"307\">\n<p data-start=\"288\" data-end=\"307\">\u20b90\u20134 lakh \u2192 Nil<\/p>\n<\/li>\n<li data-start=\"308\" data-end=\"328\">\n<p data-start=\"310\" data-end=\"328\">\u20b94\u20138 lakh \u2192 5%<\/p>\n<\/li>\n<li data-start=\"329\" data-end=\"351\">\n<p data-start=\"331\" data-end=\"351\">\u20b98\u201312 lakh \u2192 10%<\/p>\n<\/li>\n<li data-start=\"352\" data-end=\"375\">\n<p data-start=\"354\" data-end=\"375\">\u20b912\u201316 lakh \u2192 15%<\/p>\n<\/li>\n<li data-start=\"376\" data-end=\"399\">\n<p data-start=\"378\" data-end=\"399\">\u20b916\u201320 lakh \u2192 20%<\/p>\n<\/li>\n<li data-start=\"400\" data-end=\"423\">\n<p data-start=\"402\" data-end=\"423\">\u20b920\u201324 lakh \u2192 25%<\/p>\n<\/li>\n<li data-start=\"424\" data-end=\"450\">\n<p data-start=\"426\" data-end=\"450\">Above \u20b924 lakh \u2192 30%<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"452\" data-end=\"598\">With the enhanced rebate u\/s 87A, tax payable becomes nil up to \u20b912 lakh (\u20b912.75 lakh for salaried taxpayers due to standard deduction).<\/p>\n<h3 data-start=\"605\" data-end=\"646\"><span class=\"ez-toc-section\" id=\"What_You_Give_Up_in_the_New_Regime\"><\/span><span style=\"color: #000080;\"><strong data-start=\"608\" data-end=\"646\">What You Give Up in the New Regime<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li data-start=\"647\" data-end=\"841\">Section 80C deductions (PF, ELSS, LIC, etc.)<\/li>\n<li data-start=\"647\" data-end=\"841\">Own contribution to NPS u\/s 80CCD(1B)<\/li>\n<li data-start=\"647\" data-end=\"841\">Medical insurance deduction u\/s 80D<\/li>\n<li data-start=\"647\" data-end=\"841\">House Rent Allowance (HRA)<\/li>\n<li data-start=\"647\" data-end=\"841\">Most exemptions and allowances<\/li>\n<\/ul>\n<h3 data-start=\"848\" data-end=\"875\"><span class=\"ez-toc-section\" id=\"What_Still_Continues\"><\/span><span style=\"color: #000080;\"><strong data-start=\"851\" data-end=\"875\">What Still Continues<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li data-start=\"876\" data-end=\"1071\">Employer\u2019s contribution to NPS u\/s 80CCD(2) (14% of basic + DA for <strong data-start=\"947\" data-end=\"964\">all employees<\/strong>)<\/li>\n<li data-start=\"876\" data-end=\"1071\">Gratuity, leave encashment, VRS &amp; retirement benefits<\/li>\n<li data-start=\"876\" data-end=\"1071\">Standard deduction (for salaried taxpayers)<\/li>\n<\/ul>\n<h3 data-start=\"1078\" data-end=\"1127\"><span class=\"ez-toc-section\" id=\"The_Real_Question_Isnt_%E2%80%9CWhich_Is_Better%E2%80%9D\"><\/span><span style=\"color: #000080;\"><strong data-start=\"1081\" data-end=\"1127\">The Real Question Isn\u2019t \u201cWhich Is Better?\u201d<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li data-start=\"1128\" data-end=\"1178\">It\u2019s \u201cHow much deduction do you actually use?\u201d Low deductions \/ simple salary \u2192 New regime often wins &amp; High HRA, 80C, 80D, home loan interest \u2192 Old regime still relevant<\/li>\n<li data-start=\"1350\" data-end=\"1511\">The new regime is not anti-savings\u2014it\u2019s anti-complexity. But choosing blindly can cost money. A regime comparison is no longer optional\u2014it\u2019s essential.<\/li>\n<\/ul>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Comparison of the new tax regime vs. the old tax regime for FY 2025-26 Comparison of the new tax regime vs. the old tax regime for FY 2025-26, including income slabs, tax rates, and allowed deductions\/exemptions. Income Tax Slab Rates (FY 2025-26) Slabs under\u00a0Old Tax Regime Up to INR 2,50,000 \u2013 Nil INR 2,50,001 \u2013 &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[150],"tags":[10400],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/30830"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=30830"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/30830\/revisions"}],"predecessor-version":[{"id":31028,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/30830\/revisions\/31028"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=30830"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=30830"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=30830"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}