The new financial year has started from 1 April. From this day itself, changes in the budget in New Tax Reseam and Old Tax Regime have come into force. Let us tell you that in the general budget presented on 1 February, Finance Minister Nirmala Sitharaman had reduced the tax of those who earned up to Rs 12 lakh in New Tax Regime.
At the same time, the Old Tax Resetim was kept in this budget as it was. In such a situation, now the question arises whether the old tax regime is better or the new tax regime. With this, how can the tax be saved in the new tax regime and how much taxpayer is going to benefit in this way. If you also want to know all this, then we are telling about it in detail here.
Income tax slab in new tax regime
| Income tax slab (in rupee) | Income tax rate (%) |
| 0-4,00,000 | 0 |
| 4,00,001-8,00,000 | 5 |
| 8,00,001-12,00,000 | 10 |
| 12,00,001-16,00,000 | 15 |
| 16,00,001-20,00,000 | 20 |
| 20,00,001-24,00,000 | 25 |
| 24,00,001 and Above | 30 |
Standard deduction in new tax regime
The government is not taking any tax on the income of up to Rs 12 lakh in the new tax regime. Along with this, salary-based people also get a standard deduction of 75 thousand rupees in New Tax Regime, in such a situation, people who choose New Tax Region in FY 2025- 26. They will not have to pay any tax on earnings up to Rs 12.75 lakh. At the same time, for those who have an annual salary between 20 and 24 lakh rupees, a new slab has come in the new tax regime, in which 25 percent tax has to be paid. Tax slab in old tax regime
TDS limit limit increased
- What has changed: The limit of TDS (Tax deduction at source) has been increased on some payments.
- TDS exemption doubles on income from rent: The limit of TDS has increased from 2.4 lakh to 6 lakh rupees on the income from rent.
- Discounts on interest income for senior citizens double: The TDS limit for senior citizens earning interest income from bank FD has increased from 50 thousand rupees to 1 lakh rupees.
- TDS limit on professional service: The limit of TDS on professional service has now increased from 30 thousand to 50 thousand rupees.
- What will be the effect: This will reduce the burden of TDS on low -income persons and improve cash flow.
| Income limit (₹) | Tax rate (%) |
|---|---|
| Up to 2,50,000 | Zero (no tax) |
| 2,50,001 – 5,00,000 | 5% |
| 5,00,001 – 10,00,000 | 20% |
| More than 10,00,000 | 30% |
Old Tax Resetim is now beneficial for whom?
There was no major change in the slab or exemption of Old Regime in Budget 2025. In which income tax-free of up to 2.5 lakhs, and then 5%, 20%, and 30%slabs will be applicable, deductions such as 80C (1.5 lakh), 80D (25,000-50,000), and home loan interest (up to 2 lakh) will be available. If you take advantage of HRA, home loan, or large investment, then the old regime can still be beneficial. If you live on rent, pay home loans, or bear big medical expenses, Phil can think about Old Tax Regim.
If your income is more than 1.5 million and you take advantage of deduction, then tax can be reduced in old regime. Tax slabs may be low in New Region, but the total tax may increase due to lack of discounts. Investor select the correct option by comparing both your income, expenses, and investment.