Income Tax Rules FY 2025-26 (AY 2026-27): Old vs New Tax Regime Explained
A detailed guide on the Income Tax Rules for FY 2025-26 in India. Compare the Old vs New Tax Regime, understand tax slabs, standard deductions, and calculate your tax.
Filing for FY 2025-26: What You Need to Know
As you prepare to file your returns for Financial Year 2025-26 (Assessment Year 2026-27), understanding the battle between the Old and New Tax Regimes is critical to maximizing your take-home salary.
Old vs New Tax Regime: The Great Debate
The New Tax Regime is the default setting. It offers lower tax rates and a massive Section 87A rebate (zero tax on income up to ₹12 Lakhs), plus a ₹75,000 standard deduction for salaried employees.
The Old Tax Regime, however, allows you to claim numerous exemptions. You can claim the standard deduction (₹50,000), HRA (House Rent Allowance), LTA, Section 80C (up to ₹1.5 Lakhs), Section 80D (Health Insurance), and Section 24b (Home Loan Interest up to ₹2 Lakhs).
When is the Old Regime Better?
If you are paying a high rent (claiming maximum HRA), paying off a home loan, and fully exhausting your 80C and NPS limits, the Old Regime can still mathematically defeat the New Regime for higher-income brackets.
Tax Slabs Summary for FY 2025-26
Old Regime Slabs: 0% up to ₹2.5L, 5% up to ₹5L, 20% up to ₹10L, and 30% above ₹10L.
New Regime Slabs: 0% up to ₹4L, 5% up to ₹8L, 10% up to ₹12L, 15% up to ₹16L, 20% up to ₹20L, 25% up to ₹24L, and 30% above ₹24L.
Calculate Your Tax in 10 Seconds
Don't rely on guesswork. Using our strict, compliance-checked tool, you can input your exact salary, business income, and deductions to see a beautiful side-by-side comparison of both regimes.
The calculator instantly highlights the "Winner" and tells you exactly how much money you save by choosing the right regime.