Income Tax Slab and Savings comparison in New and Old Regime as per Budget 2025

Income Tax Calculation w.e.f 01/04/2025

The government has introduced a new tax slab system, making incomes up to Rs. 12 lakh completely tax-free. This change is a huge win for taxpayers, significantly reducing their tax burden and increasing their disposable income. In other words, individuals earning up to Rs. 12 lakh won't have to pay a single rupee in taxes

This new system is part of the new tax regime, which aims to simplify the tax structure and provide relief to taxpayers. The revised tax slabs are designed to benefit a large section of taxpayers, including individuals and Hindu Undivided Families (HUFs). With this change, around one crore assessees who were earlier required to pay tax ranging from Rs. 20,000 to Rs. 80,000 will now pay zero tax

Income	Earlier	Now	Savings
12 Lakh	83200	0	83200
15 Lakh	130000	97500	32500
20 Lakh	278000	192400	85800
24 Lakh	426400	312000	114400

Old Tax Calculation after maximum deduction of 4.5 lakh

 

FY 25-26 Tax Caluclation	Old Tax
Income	1200000
Total Maximum Dedcution	-450000

Old Tax Regime Calculation

FY 25-26 Tax Caluclation	Old Tax
Taxable Income	750000
Net Tax Payable	62500