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