Income Tax (2025): Old vs. New Regime Comparison
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Income Tax Made Simple - Old vs New Income Tax Regime Comparison
Income Tax Comparison Table - FY 2025-26
| Annual Income Range (Rs.) | Old Regime Tax + 4% Cess | New Regime Tax + 4% Cess Better for taxpayers | Savings (Old - New) |
|---|---|---|---|
| 0 - 1 lakh | Rs.0 | Rs.0 | Rs.0 |
| 1 - 2 lakh | Rs.0 | Rs.0 | Rs.0 |
| 2 - 3 lakh | Rs.2,600 | Rs.0 | Rs.2,600 |
| 3 - 4 lakh | Rs.7,800 | Rs.0 | Rs.7,800 Savings |
| 4 - 5 lakh | Rs.13,000 | Rs.5,200 | Rs.7,800 |
| 5 - 6 lakh | Rs.33,800 | Rs.15,600 | Rs.18,200 |
| 6 - 7 lakh | Rs.54,600 | Rs.26,000 | Rs.28,600 |
| 7 - 8 lakh | Rs.75,400 | Rs.36,400 | Rs.39,000 |
| 8 - 9 lakh | Rs.96,200 | Rs.46,800 | Rs.49,400 |
| 9 - 10 lakh | Rs.1,17,000 | Rs.57,200 | Rs.59,800 |
| 10 - 12 lakh | Rs.1,79,400 | Rs.78,000 | Rs.1,01,400 |
| 12 - 15 lakh | Rs.2,73,000 | Rs.1,24,800 | Rs.1,48,200 |
| 15 - 20 lakh | Rs.4,29,000 | Rs.2,22,000 | Rs.2,07,000 |
| 20 - 25 lakh | Rs.5,85,000 | Rs.3,56,400 | Rs.2,28,600 |
| 25 - 30 lakh | Rs.7,41,000 | Rs.4,86,400 | Rs.2,54,600 |
| 30 - 40 lakh | Rs.10,53,000 | Rs.7,46,400 | Rs.3,06,600 |
| 40 - 50 lakh | Rs.13,65,000 | Rs.10,06,400 | Rs.3,58,600 |
Key Tax Slab Rates for FY 2025-26:
New Regime: (Better for taxpayers)
- Rs.0-4 lakh: 0%, Rs.4-8 lakh: 5%, Rs.8-12 lakh: 10%, Rs.12-16 lakh: 15%, Rs.16-20 lakh: 20%, Rs.20-24 lakh: 25%, Above Rs.24 lakh: 30%
Old Regime (for individuals under 60):
- Rs.0-2.5 lakh: 0%, Rs.2.5-5 lakh: 5%, Rs.5-10 lakh: 20%, Above Rs.10 lakh: 30%
Key Improvements Made:
- Income Range Column: Now shows proper ranges like "Rs.4-5 lakh" instead of fixed amounts
- Sample Income Examples: Added Rs.4.75 lakh example to show tax calculation within ranges
- Clear Range Boundaries: Shows exactly which income bracket applies
- Better Formatting: More readable and logical progression
Tax Calculation Examples:
For Rs.4.75 lakh income:
- Old Regime: (Rs.4,75,000 - Rs.2,50,000) × 5% × 1.04 = Rs.11,700
- New Regime: (Rs.4,75,000 - Rs.4,00,000) × 5% × 1.04 = Rs.3,900