ITR filing FY 2025-26: Old vs new income tax regime - how salaried taxpayers can lower tax outgo
Before making a choice, be informed of the tax slabs and also how the math to deciding the correct tax regime works: (AI image) ITR
Before making a choice, be informed of the tax slabs and also how the math to deciding the correct tax regime works: (AI image) ITR filing FY 2025-26 Before making a choice, be informed of the tax slabs and also how the math to deciding the correct tax regime works Latest Income Tax Slabs FY 2025-26 Let’s first take a look at the income tax slabs for FY 2025-26 under both the new and old income tax regimes New regime Income Tax Slab Income Tax Rate 0-4 lakh Nil 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 Income Tax Slab Income Tax Rate 0-2.5 lakh Nil 2.5-5 lakh 5% 5-10 lakh 20% Above 10 lakh 30% The above tax slabs are eligible for resident individuals.
In the case of the old regime, the basic exemption limit is higher at Rs 3 lakh and Rs 5 lakh for senior citizens and super senior citizens. For resident individuals up to 60 years of age, the new tax regime offers a higher basic exemption limit of Rs 4 lakh and higher standard deduction of Rs 75,000. Under the old regime, the basic exemption limit is Rs 2.5 lakh, and the standard deduction is Rs 50,000.
Apart from income tax slabs and rates differing, one big difference is for incomes above Rs 5 crore - the surcharge rate under the new tax regime is 25%, whereas that under the old regime is 37%. New versus old income tax regime: What should you
choose? Particulars New tax regime (Rs) Old tax regime (Rs) Income (A) 25,00,000 Net Eligible deductions/exemptions (B) (e.g. house rent allowance, Section 80C deduction of LIC, housing loan repayment etc.) NIL 775,000 Taxable income (A-B) 25,00,000 17,25,000 Tax on above (including health and education cess) 343,200
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