Previous vs New Tax Regime: The announcement of revised new tax slabs in Union Finances 2025 gave aid to crores of taxpayers in India.
The tax-free earnings restrict for non-salaried-class people is Rs 12,00,000 in a monetary 12 months, whereas for salaried-class people, it’s Rs 12,75,000.
Nonetheless, the proposed new tax regime will likely be relevant from the monetary 12 months 2025-26.
For FY2526, the prevailing new regime and the previous tax regime will likely be relevant.
Taxpayers can choose the tax regime primarily based on their earnings and investments in varied tax-saving schemes.
However how a lot earnings tax it’s possible you’ll must pay within the present new, proposed new, and previous tax regimes in case your annual earnings is Rs 8.25 lakh, Rs 14.50 lakh, Rs 17.70 lakh, Rs 20.75 lakh, Rs 23.75 lakh, and Rs 26.10 lakh.
Current new tax regime slabs
| Tax Slab for FY 2024-25 | Tax Price |
| As much as Rs 3 lakh | NIL |
| Rs 3 lakh – Rs 7 lakh | 5% |
| Rs 7 lakh – Rs 10 lakh | 10% |
| Rs 10 lakh – Rs 12 lakh | 15% |
| Rs 12 lakh – Rs 15 lakh | 20% |
| Above Rs 15 lakh | 30% |
Proposed new tax regime slabs
| Earnings Tax Slabs | Tax Price |
| Upto Rs. 4,00,000 | NIL |
| Rs. 4,00,001 – Rs. 8,00,000 | 5% |
| Rs. 8,00,001 – Rs. 12,00,000 | 10% |
| Rs. 12,00,001 – Rs. 16,00,000 | 15% |
| Rs. 16,00,001 – Rs. 20,00,000 | 20% |
| Rs. 20,00,001 – Rs. 24,00,000 | 25% |
| Above Rs. 24,00,000 | 30% |
Previous new tax regime slabs
| Earnings Slabs | Beneath 60 | 60 To 80 Years |
| As much as Rs 2,50,000 | NIL | NIL |
| Rs.2,50,001 – Rs.3,00,000 | 5% | NIL |
| Rs 3,00,001 – Rs 5,00,000 | 5% | 5% |
| Rs 5,00,001 to Rs 10,00,000 | 20% | 20% |
| Rs 10,00,001 and above | 30% | 30% |
Proposed vs Current New Tax Regime: What are the principle adjustments?
- The principle change is that earnings as much as Rs 700,000 is tax-free within the present new tax regime.
- Within the proposed tax regime, the tax-free earnings restrict is Rs 12,00,000 for non-salaried class people, whereas the restrict is Rs 12,75,000 for salaried-class people.
- Apart from that, the 5 per cent tax slab will begin from Rs 4 lakh as a substitute of Rs 3 lakh.
- The ten per cent tax slab will begin from Rs 8 lakh as a substitute of Rs 7 lakh.
- The 15 per cent tax slab will start from Rs 12 lakh as a substitute of Rs 10 lakh.
- The 20 per cent tax slab will begin from 16 lakh as a substitute of Rs 12 lakh.
- A brand new tax slab of 25 per cent will likely be launched, which is able to begin from Rs 20 lakh.
- The 30 per cent tax slab will start from Rs 24 lakh as a substitute of Rs 15 lakh.
Marginal aid and rebate
The proposed new tax regime followers will get a most rebate of Rs 60,000, whereas if their taxable earnings will increase barely above Rs 12 lakh, they must pay tax simply on the incremental worth.
Claculations for story
We are going to calculate earnings tax for a salaried-class particular person for an annual earnings of Rs 8.25 lakh, Rs 11.50 lakh, Rs 14.50 lakh, Rs 17.70 lakh, Rs 23.75 lakh, and Rs 26.10 lakh. We is not going to take into account any tax dedcution for our story.
Previous vs new tax regime: Tax on Rs 8.25 lakh earnings
- Current new tax regime- Rs 26,000
- Proposed new tax regime- 0
- Previous tax regime- Rs 70,200
Previous vs new tax regime: Tax on Rs 11.50 lakh earnings
- Current new tax regime- Rs 63,700
- Proposed new tax regime- 0
- Previous tax regime- Rs 1,48,200
Previous vs new tax regime: Tax on Rs 14.50 lakh earnings
- Current new tax regime- Rs 1,19,600
- Proposed new tax regime- Rs 89,700
- Previous tax regime- Rs 2,41,800
Previous vs new tax regime: Tax on Rs 17.70 lakh earnings
- Current new tax regime- Rs 2,06,440
- Proposed new tax regime- Rs 1,44,560
- Previous tax regime- Rs 3,41,640
Previous vs new tax regime: Tax on Rs 23.75 lakh earnings
- Current new tax regime- Rs 3,95,200
- Proposed new tax regime- Rs 2,86,000
- Previous tax regime- Rs 5,30,400
Previous vs new tax regime: Tax on Rs 26.10 lakh earnings
- Current new tax regime- Rs 4,68,520
- Proposed new tax regime- Rs 3,54,120
- Previous tax regime- Rs 6,03,720
