🇮🇳 FY 2025-26 Old regime vs New regime
Old vs New Tax Regime India.
TL;DR: New regime wins if your old-regime deductions are below ₹4 lakh. Old regime wins if you have ₹1.5L 80C + ₹50K 80D + significant HRA + ₹2L home loan interest. Use the calculator below to see your numbers.
🇮🇳
FY 2025-26India Income Tax Calculator
₹
₹15.00 L per year
Old Regime deductions (only used if Old Regime is selected)+ Toggle
Old Regime
₹1,31,040
Taxable: ₹10.45 L
Deductions: ₹4.55 L
✓ Better
New Regime (default)
₹97,500
Taxable: ₹14.25 L
Deductions: ₹75,000 (auto)
💡 Recommendation
The New Regime saves you ₹33,540 in tax this year. New regime wins — you don't have enough deductions to beat the default lower slabs.
✨ Live · FY 2025-26 (AY 2026-27) slabs · Includes 4% cess and surcharge · Not legal/tax advice — consult a CA for filings.
The slabs, side by side.
Old Regime
₹0 – ₹2.5L0%
₹2.5L – ₹5L5%
₹5L – ₹10L20%
₹10L+30%
Rebate 87A (limit)₹5L
Standard deduction₹50,000
80C, 80D, HRA, home loan✓
New Regime (default)
₹0 – ₹4L0%
₹4L – ₹8L5%
₹8L – ₹12L10%
₹12L – ₹16L15%
₹16L – ₹20L20%
₹20L – ₹24L25%
₹24L+30%
Rebate 87A (limit)₹12L
Standard deduction₹75,000
80C, 80D, HRA, home loan✗
💡 Breakeven math
The ₹4 lakh deduction line.
For a ₹15 lakh gross salary, Old regime wins ONLY if your total deductions exceed approximately ₹4 lakh. Here\'s a typical maxed-out Old regime deduction stack:
- →Standard deduction: ₹50,000
- →Section 80C (PPF, EPF, ELSS, life insurance, home loan principal): ₹1,50,000
- →Section 80D (health insurance): ₹25,000 (self) + ₹25,000 (parents) = ₹50,000
- →HRA (depends on rent + basic + city): ₹1,00,000-2,00,000 in metros
- →Section 24(b) home loan interest: ₹2,00,000 (only if you have a home loan)
- →NPS extra (80CCD-1B): ₹50,000
If you don\'t have a home loan, ₹4L deductions is hard to reach. Most renters in non-metro cities will save more in the New regime.
❓ FAQ
Common questions.
Old vs New tax regime — which is better for me?
Rule of thumb: if your total old-regime deductions exceed ₹4 lakh/year (Section 80C ₹1.5L + Section 80D ₹50K + HRA ₹1.5-2L + home loan ₹2L), Old regime wins. Below ₹4L deductions, New regime wins because of its lower headline slab rates and full rebate up to ₹12L taxable income.
What is the New Tax Regime in India for FY 2025-26?
The default tax structure since AY 2024-25. Lower slab rates: 0% up to ₹4L, 5% up to ₹8L, 10% up to ₹12L, 15% up to ₹16L, 20% up to ₹20L, 25% up to ₹24L, 30% above. ₹75K standard deduction for salaried. ₹12L full rebate via Section 87A. No 80C, 80D, HRA exemption.
Can I switch between Old and New regime every year?
Salaried employees can switch freely each financial year (declare to your employer in April or revise in the ITR). Self-employed/business income filers can switch only ONCE in lifetime — choose carefully. The default for everyone post-AY 2024-25 is the New Regime unless you opt out.
Does HRA exist in the New regime?
No — the New Regime eliminates HRA exemption. If you're in a tier-1 metro (Delhi/Mumbai/Chennai/Kolkata) and paying high rent, the Old Regime's HRA exemption (50% of basic salary) often makes Old win. Below ₹50K monthly rent in metros, New typically wins.
Is the New Regime mandatory in 2025-26?
No, but it is the DEFAULT. You must actively opt for Old Regime via Form 10-IEA before filing your ITR. Most employers default new joiners to New Regime starting April 2024 — review your Form 16 each year to confirm which was applied.