New vs. Old Regime Slabs & Tax Calculator for FY25 & FY26
Income Tax Bill 2025: New vs. Old Regime Slabs & Tax Calculator for FY25 & FY26
New vs. Old Regime Slabs & Tax Calculator for FY25 & FY26 The Income Tax Bill 2025 has been introduced in Parliament with the objective of simplifying the provisions of the Income Tax law for better clarity and readability. New vs. Old Regime Slabs & Tax Calculator for FY25 & FY26 While the bill does not bring any policy changes compared to the old Income Tax Act, 1961, it significantly impacts taxpayers through modifications in tax slabs under the New Tax Regime (NTR) while keeping the Old Tax Regime (OTR) unchanged.
In this blog, we will explore the revised tax slabs under the Union Budget 2025-26, compare them with the old regime, and guide you on using the official Income Tax Calculator to determine your tax liability.
Income Tax Calculator for FY 2024-25 & FY 2025-26
The Income Tax Department has launched a simple online tool to help taxpayers compare taxes New vs. Old Regime Slabs & Tax Calculator for FY25 & FY26 under the New Tax Regime for FY 2024-25 and FY 2025-26 (after the Budget proposal).
How to Use the Income Tax Calculator? A Step-By-Step Guide
Step 1: Visit the official Income Tax Calculator on the Income Tax Department website.
Step 2: The first column, ‘Tax Payer,’ will already be filled as ‘Individual.’ You can ignore this section.
Step 3: Select your residential status. Choose ‘Resident’ if you live in India.
Step 4: Enter your annual taxable income (excluding special rate income).
Step 5: Click anywhere outside the input box.
Your total tax liability for the current and next financial years will be displayed, along with potential tax savings. This tool is specifically designed for the New Tax Regime as per the revised tax slabs under the Union Budget 2025-26.
Income Tax Calculator for the Old Tax Regime
Since the Old Tax Regime remains unchanged under Budget 2025-26, you can check your tax liability using the existing Income Tax Calculator.
Steps to Use the Old Tax Regime Calculator:
Step 1: Visit the Income Tax Portal for the existing income tax calculator.
Step 2: Enter details of your salary, rental income, business income, and other earnings.
Step 3: Include deductions under various sections, such as 80C, 80D, and other eligible tax benefits.
The tool will instantly compare and show your tax payable under both regimes for FY 2024-25 and FY 2025-26.
Budget 2025-26: New Tax Regime (NTR) vs. Old Tax Regime (OTR)
New vs. Old Regime Slabs & Tax Calculator for FY25 & FY26 The Union Budget 2025-26 aims to provide tax relief to the middle class by introducing changes to the New Tax Regime, offering a tax exemption for annual incomes up to Rs 12 lakh (up from Rs 7 lakh). New vs. Old Regime Slabs & Tax Calculator for FY25 & FY26 This is expected to benefit over one crore taxpayers and reduce the overall tax burden.
However, the Old Tax Regime remains unchanged.
https://www.incometax.gov.in/iec/foportal/
New Tax Regime (NTR) Slabs for FY 2025-26
| Annual Income (Rs) | Tax Rate (%) |
| Up to Rs 4,00,000 | Nil |
| Rs 4,00,001 – Rs 8,00,000 | 5% |
| Rs 8,00,001 – Rs 12,00,000 | 10% |
| Rs 12,00,001 – Rs 16,00,000 | 15% |
| Rs 16,00,001 – Rs 20,00,000 | 20% |
| Rs 20,00,001 – Rs 24,00,000 | 25% |
| Above Rs 24,00,000 | 30% |
Key Highlights:
- Individuals earning up to Rs 12.75 lakh (including a standard deduction of Rs 75,000) will pay zero tax.
- Tax slabs have been adjusted to reduce the overall tax burden for middle-class taxpayers.
Old Tax Regime (OTR) Slabs for FY 2025-26
| Annual Income (Rs) | Tax Rate (%) |
| Up to Rs 2,50,000 | Nil |
| Rs 2,50,001 – Rs 5,00,000 | 5% |
| Rs 5,00,001 – Rs 10,00,000 | 20% |
| Above Rs 10,00,000 | 30% |
For Senior Citizens:
- For individuals aged 60-80 years, the basic exemption limit is Rs 3,00,000.
- For super senior citizens (above 80 years), the exemption limit is Rs 5,00,000.
Deductions Available in the Old Tax Regime:
| Section | Deduction Type | Maximum Limit (Rs) |
| 80C | Investments (PPF, ELSS, LIC) | 1,50,000 |
| 80D | Health Insurance Premiums | Varies by age |
| 24(b) | Home Loan Interest | 2,00,000 |
| HRA & LTA | House Rent & Travel Allowances | Based on actuals |
New Tax Regime vs. Old Tax Regime: Which One is Better?
The choice between the New Tax Regime (NTR) and Old Tax Regime (OTR) depends on individual financial situations. New vs. Old Regime Slabs & Tax Calculator for FY25 & FY26 Here’s a quick guide to help you decide:
Opt for the New Tax Regime (NTR) if:
✔ You do not claim many deductions under 80C, 80D, HRA, and others. ✔ You prefer lower tax rates with a simplified structure. New vs. Old Regime Slabs & Tax Calculator for FY25 & FY26 ✔ You earn between Rs 7 lakh and Rs 12.75 lakh to benefit from the zero-tax slab.
Opt for the Old Tax Regime (OTR) if:
✔ You claim multiple deductions (investments, home loan interest, insurance, etc.). ✔ You fall in a higher income bracket and can benefit from higher deductions. ✔ You have significant HRA, LTA, and standard deductions reducing taxable income.
Conclusion
The Income Tax Bill 2025 introduces a revised New Tax Regime with increased tax exemptions and lower rates, while keeping the Old Tax Regime unchanged. New vs. Old Regime Slabs & Tax Calculator for FY25 & FY26 Taxpayers should use the official Income Tax Calculator to compare both regimes and determine the most beneficial option for their income level.
If you want to calculate your tax liability, visit the Income Tax Department’s official calculator today and make an informed choice for FY 2024-25 and FY 2025-26!
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