Tax regime
One of two ways to be taxed in India: new regime (lower rates, few deductions) or old (higher rates, more deductions).
A tax regime is the rule set your income tax is worked out under. India has two: the new regime, with lower rates and a large rebate but few deductions, and the old regime, with higher rates but many deductions like 80C and HRA. The new regime is the default; you can opt for the old one. Rules change each Budget, so confirm the current figures on incometax.gov.in.
Questions people ask
What is the difference between the old and new tax regime?
The new regime has lower slab rates but almost no deductions. The old regime has higher rates but lets you claim 80C, HRA and many others. The new regime is the default; you can opt for the old one.
Which tax regime is better for me?
It depends on how many deductions you can claim. If you use a lot of 80C, HRA and home-loan benefits, the old regime may win; if not, the new regime's lower rates usually do. Compare both on your own numbers each year. This is general education, not tax advice.
What are the new regime income tax slabs for FY2025-26?
Nil up to ₹4 lakh, 5% from ₹4 to 8 lakh, 10% from ₹8 to 12 lakh, 15% from ₹12 to 16 lakh, 20% from ₹16 to 20 lakh, 25% from ₹20 to 24 lakh, and 30% above ₹24 lakh. A rebate makes taxable income up to ₹12 lakh effectively tax-free. Slabs change each Budget, so confirm on incometax.gov.in.
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