FM implemented a new income tax regime in AY24-25, offering standard and NPS deductions.
The old regime was not profitable in AY 2021-2022. Starting AY 2024-2025, FM overhauled the New Tax Regime, introducing perks like standard deduction and NPS deduction.
Financial Year 2024-25: The current budget has made the New Tax Regime more profitable, making it better for salaried employees.
The question remains: which income tax system is better for salaried workers?
Income Tax Slab Rates in New Tax Regime for 2025-26 Annual Year
Total Income (Rs) Rate
Upto Rs. 3,00,000 Nil
From Rs. 3,00,001 to Rs. 7,00,000 is 5%
From Rs. 7,00,001 to Rs. 10,00,000 is 10 per cent (10%)
From Rs. 10,00,001 to Rs. 12,00,000 is 15 per cent
From Rs. 12,00,001 to Rs. 15,00,000 is 20%
Above Rs. 15,00,000 is 30%
Income Tax Slab Rates by ITR department in Old Tax Regime for 2025-26 AY
Net income range Resident Super Senior Citizen Resident Senior Citizen Any other Individual
Up to Rs. 2,50,000 =Nil
Rs. 2,50,001 (NIL) – Rs. 3,00,000 ( 5%)
Rs. 3,00,001 (5%) – Rs. 5,00,000 (5%)
Rs. 5,00,001 (20%) – Rs. 10,00,000 (20%)
Above Rs. 10,00,000 (30%)
