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The New Tax Regime continues to simplify personal taxation by using fewer deductions and wider income slabs. For FY 2025-26, slabs are expanded, the standard deduction increases, the Section 87A rebate threshold rises, and a formal marginal relief ensures a smooth transition just above the rebate limit.
Note: Numbers here are planning estimates. Always verify your financial-year rules and consult a professional before filing.
We compare **New Regime** only for both FYs with the slab defaults shown below.
| Income Range (₹) | 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% |
| Income Range (₹) | Tax Rate |
|---|---|
| Up to 4,00,000 | Nil |
| 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% |
| Above 24,00,000 | 30% |
The flat deduction reduces your taxable salary without proofs. It is ₹50,000 for FY 2024-25 and ₹75,000 for FY 2025-26 under the New Regime for eligible salaried and pensioners.
If your taxable income does not exceed the threshold, your income-tax becomes zero after rebate.
To avoid a “tax jump” immediately above ₹12L, marginal relief limits tax such that:
Tax Payable ≤ Income − ₹12,00,000 (up to approx. ₹12,75,000 where the slab tax naturally becomes lower than the cap).
| Annual Income | Tax 24-25 | Tax 25-26 | Change |
|---|
Yes, toggle the switch to include or exclude 4% Health & Education Cess.
The New Regime largely forgoes common deductions. This page focuses on standard deduction, 87A rebate, and marginal relief. Use the main CTC Calculator to model full salary structures.
No. It’s for planning and learning. Always verify official rules for your assessment year and consult a professional.