New Tax Regime vs Old Tax Regime: What’s Best for You in FY 2025-26?
Apr 10
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With Budget 2025 reinforcing the government's push toward the New Tax Regime, taxpayers are once again evaluating the best way to optimize their tax outgo.
Let’s decode the key differences, latest tax slab updates, and which regime suits whom.
📊 Latest Tax Slabs for FY 2025-26
🟢 New Tax Regime (Default Option):
Income Slab | Tax Rate |
Up to ₹3,00,000 | Nil |
₹3,00,001 – ₹6,00,000 | 5% |
₹6,00,001 – ₹9,00,000 | 10% |
₹9,00,001 – ₹12,00,000 | 15% |
₹12,00,001 – ₹15,00,000 | 20% |
Above ₹15,00,000 | 30% |
Standard deduction of ₹50,000 is available, and rebate under section 87A is applicable for incomes up to ₹7,00,000.
🔵 Old Tax Regime:
Retains all deductions like:
80C (Investments up to ₹1.5 lakh)
80D (Health Insurance)
HRA, LTA, Home Loan Interest, etc.
But comes with higher tax rates.
🧐 Old vs. New: Which One to Choose?
Feature | Old Regime | New Regime |
Deductions Allowed | Yes (80C, 80D, etc.) | Very Limited |
Tax Filing Simplicity | Complex | Simple |
Best For | High investments/salaried | Low deductions/flexible |
Rebate Limit (87A) | ₹5,00,000 income | ₹7,00,000 income |
🆕 What’s New in Budget 2025?
✔️ No major slab changes this year✔️ Continued focus on New Regime as default✔️ Benefits for startups, women entrepreneurs & senior citizens✔️ Rationalization of TDS & TCS provisions✔️ Push toward faceless assessments and e-filing convenience
💡 Need Help Choosing the Right Regime?
Our CA experts provide personalized tax planning to help you:
Maximize savings
Choose the optimal regime
File accurately and on time
📩 Contact us today for a FREE regime comparison and consultation!