Question 1

Which is better — New Tax Regime or Old Tax Regime in 2025?

Accepted Answer

The New Tax Regime is generally better if your total deductions (80C + HRA + NPS + home loan interest etc.) are less than ₹3.75 lakh. The Old Regime is better if you have significant deductions (like home loan interest, HRA, 80C). Use the calculator above to compare your specific situation.

Question 2

What are the New Tax Regime slabs for FY 2025-26?

Accepted Answer

Under the New Regime: Up to ₹3L — Nil, ₹3L–7L — 5%, ₹7L–10L — 10%, ₹10L–12L — 15%, ₹12L–15L — 20%, Above ₹15L — 30%. Additionally, income up to ₹12L is fully tax-free via Section 87A rebate (₹60,000). Standard deduction of ₹75,000 applies.

Question 3

What is the standard deduction for salaried employees in 2025?

Accepted Answer

For FY 2025-26: ₹75,000 under the New Tax Regime, and ₹50,000 under the Old Tax Regime. This is automatically deducted from gross salary before calculating taxable income.

Question 4

What deductions are allowed under the Old Tax Regime?

Accepted Answer

Key deductions: 80C (up to ₹1.5L) — LIC, PPF, ELSS, EPF, home loan principal; 80D — health insurance premium; HRA — house rent exemption; Home loan interest (Section 24b — up to ₹2L); NPS (80CCD(1B) — up to ₹50,000 extra); Standard Deduction — ₹50,000.

Question 5

Is surcharge applicable on income tax?

Accepted Answer

Yes. Surcharge applies on income above ₹50 lakh: 10% surcharge for ₹50L–₹1Cr, 15% for ₹1Cr–₹2Cr, 25% for ₹2Cr–₹5Cr, 37% for above ₹5Cr (Old Regime) / 25% maximum (New Regime). Health & Education Cess of 4% applies on all tax + surcharge.

Income Slab	Tax Rate
Up to ₹3,00,000	Nil
₹3,00,001 – ₹7,00,000	5%
₹7,00,001 – ₹10,00,000	10%
₹10,00,001 – ₹12,00,000	15%
₹12,00,001 – ₹15,00,000	20%
Above ₹15,00,000	30%

Income Tax Calculator FY 2025-26

Income Details

Tax Comparison FY 2025-26

New Regime — Tax Breakdown

New Tax Regime Slabs FY 2025-26

Income Tax Calculator — FAQs

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