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Income Tax Slab & Rate for FY 2025-26

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Riva said:
Right, i included the 75K rebate as well and rounded to the nearest lakh.
What i ment to say was, from the hype created on media, its basically not much benefit for those above 12.75L.
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See the main table in page 1 of this thread 6th column (extreme right). I have specified Net benefits in percentage.

Even a taxpayer whose income is 13 Lakh or 14 lakh will get a benefit of 25%. Benefits in terms of percentage increases from 15 Lakh to 20 Lakh. That is substantial in my view. Everyone can not be given 100%.
 
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2025 said:
See the main table in page 1 of this thread 6th column (extreme right). I have specified Net benefits in percentage.

Even a taxpayer whose income is 13 Lakh or 14 lakh will get a benefit of 25%. Benefits in terms of percentage increases from 15 Lakh to 20 Lakh. That is substantial in my view. Everyone can not be given 100%.
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Looks like 14-15 lakh ctc people will also pay zero tax, if they have employer contribution (nps+pf+medical insurence) and standard deduction 75 lacs.

Because these will not count in their actual salary.
 
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2025 said:
Question: After the recent changes in income tax rate old tax regime or new tax regime which one is beneficial?

Answer:
It depends on various factors.
1. Your taxable income.
2. How much and which of those benefits u r using on old regime.

In simple terms for 99% (may be 100%) people the new regime should be more beneficial from FY 2025-26.

Question: How much deduction is required in old regime to make it more beneficial than new tax regime?

Answer:
Based on my assumption and rough estimate it should be around 8.0 lakh additional deduction in old regime required to make it more beneficial then the New tax regime.

FY 2023-24 - 4.25L
FY 2024-25- 4.3L or 4.375L (for salaried)
FY 2025-26- ~7.97L or 8.04 (for salaried)
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Old Regime will be scrapped by Nimmi tai and modi gang in coming week... :loudly-crying-face:

even after 11 years nothing can beat old regime for 30L and above income.

for FY 2023 - 24 i used old regime saved more tax than new regime....

in New regime we will be paying more tax than old regime.....
 
likith_jogi said:
Old Regime will be scrapped by Nimmi tai and modi gang in coming week... :loudly-crying-face:

even after 11 years nothing can beat old regime for 30L and above income.

for FY 2023 - 24 i used old regime saved more tax than new regime....

in New regime we will be paying more tax than old regime.....
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The problem is - without huge except income and deductions one cannot beat new regime.
So people started showing random fake numbers in all sections whatever possible and got deductions and excemptions.
For govt it is very difficult to track this. My known people got refunds of 2-3L every year just like that by entering random numbers.
No check no questions.
Rich people are only misusing this kind of things. People with 50L income showed exemption and made it 20L.
Maybe 1 out of 100 will get caught.
That's why govt want everyone to come to new regime.
Yes because of the wrong doing of some stupid people, lot of sincere and innocent real people will be affected. But no choice.
Like how some people use loopholes of credit cards, banks fix it and everyone get impacted same like that only.
 
likith_jogi said:
even after 11 years nothing can beat old regime for 30L and above income.

in New regime we will be paying more tax than old regime.....
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Could you please elaborate in a detailed post on how old regime can be more beneficial for a person having 30L income. I understood ur point so you can use 33L also for reference.

Your information can help many people interested to know how different income tax provisions (in old regime) that can be used for taxpayers advantage.

Will be waiting for ur post.
 
2025 said:
Could you please elaborate in a detailed post on how old regime can be more beneficial for a person having 30L income. I understood ur point so you can use 33L also for reference.

Your information can help many people interested to know how different income tax provisions (in old regime) that can be used for taxpayers advantage.

Will be waiting for ur post.
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@likith_jogi Pls do for 35 - 40L also 🙂
 
cardio_guy said:
The problem is - without huge except income and deductions one cannot beat new regime.
So people started showing random fake numbers in all sections whatever possible and got deductions and excemptions.
For govt it is very difficult to track this. My known people got refunds of 2-3L every year just like that by entering random numbers.
No check no questions.
Rich people are only misusing this kind of things. People with 50L income showed exemption and made it 20L.
Maybe 1 out of 100 will get caught.
That's why govt want everyone to come to new regime.
Yes because of the wrong doing of some stupid people, lot of sincere and innocent real people will be affected. But no choice.
Like how some people use loopholes of credit cards, banks fix it and everyone get impacted same like that only.
Click to expand...
Same question as I have requested to @likith_jogi
How can a taxpayer bring down his taxable income from 50L to 20L? Kindly elaborate a bit. I really want to know.

As far as my knowledge upto 5L is possible above that out of my guess work.
 
2025 said:
Same question as I have requested to @likith_jogi
How can a taxpayer bring down his taxable income from 50L to 20L? Kindly elaborate a bit. I really want to know.

As far as my knowledge upto 5L is possible above that out of my guess work.
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I am not sure abt it, but my ca made sure i paid less tax compare to new regime.

i had home loan, major part... also NPS, Insurance, PPF and few donations...
 
likith_jogi said:
I am not sure abt it, but my ca made sure i paid less tax compare to new regime.

i had home loan, major part... also NPS, Insurance, PPF and few donations...
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Please check your ITR and check if you see deduction for items which you do not actually have.. because lot of CA does show random things to get you refund.. as usually they submit the ITR with your credentials ... at the end of the day govt will come to you not them..
 
Well I too file under old regime and have been claiming the legit deductions and it has always been cheaper but now with the new slabs proposed it is marginally better. Which is exactly what they want to do to scarp the old regime.

I am not sure if there are any legal ways of reducing from 50l to 20l from top of my mind it could be from the 80G recipts, which is a bit risky but doable and I am sure any government will not mess with it much since that is one of the way they convert their funds to white.
 
likith_jogi said:
I am not sure abt it, but my ca made sure i paid less tax compare to new regime.

i had home loan, major part... also NPS, Insurance, PPF and few donations...
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NPS, PPF, Insurance (excl. health) comes under 80C with a cap of 1.5L only.

Donations come under 80G, still applicable in new tax regime. Hence no specific benefits.

There must be something else. As @gamersgzb has also pointed out u can verify it based on email received or in ITR filling website.
 
2025 said:
NPS, PPF, Insurance (excl. health) comes under 80C with a cap of 1.5L only.

Donations come under 80G, still applicable in new tax regime. Hence no specific benefits.

There must be something else. As @gamersgzb has also pointed out u can verify it based on email received or in ITR filling website.
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NPS is different under 80CCD, 80CCD(1B), it does not have a limit and is bound by I think 12 or 14% of your basic plus another 50K that is on top of 80C 1.5L.
Older regime has many more like home loan, HRA etc which help save a lot and them some minor ones like LTA, meal, telephone allowance etc.
 
Bhokaal said:
Well I too file under old regime and have been claiming the legit deductions and it has always been cheaper but now with the new slabs proposed it is marginally better. Which is exactly what they want to do to scarp the old regime.

I am not sure if there are any legal ways of reducing from 50l to 20l from top of my mind it could be from the 80G recipts, which is a bit risky but doable and I am sure any government will not mess with it much since that is one of the way they convert their funds to white.
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Not marginal. It should be ~25% (or more) if income is upto 25 lakh. Unless there is something unusual in ur old itr filling.

80G is also applicable in new regime.
 
2025 said:
Not marginal. It should be ~25% (or more) if income is upto 25 lakh. Unless there is something unusual in ur old itr filling.

80G is also applicable in new regime.
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My income is quite more then that and quick calculation tell me I will get about 30 to 40K benefit if I move to the new proposed one
 
Bhokaal said:
NPS is different under 80CCD, 80CCD(1B), it does not have a limit and is bound by I think 12 or 14% of your basic plus another 50K that is on top of 80C 1.5L.
Older regime has many more like home loan, HRA etc which help save a lot and them some minor ones like LTA, meal, telephone allowance etc.
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Ya 50K is additional. Remaining same for old vs new. Nps from employer side also available in new regime. Most prerequisites are also same.

Some additional like HRA and Home loan (upto 2L) and a few more are extra.

HRA is one major loophole.
 
Bhokaal said:
My income is quite more then that and quick calculation tell me I will get about 30 to 40K benefit if I move to the new proposed one
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Yes. In that case benefits reduces. It starts reducing in percentage terms as we move further from 20L.

That also means you must have been deducting income by about 6.7 lakh that also a bit unusual.
 
likith_jogi said:
Just did the IT calculation, this is what i got.. calculations are not so perfect. just for ref

NPS, PPF, 80D, Home Loan, and HRA are added.

@2025 @gamersgzb @cardio_guy

View attachment 82612


View attachment 82613


View attachment 82614
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Please show us the exemption and deduction part.

I have already mentioned if ur exemptions+ deduction is 8L+ (compared to new regime) then u will get benefitted. Problem is the deduction amount more than 5L is unusual. Seems to be an indication of problem within itself.
 
2025 said:
Please show us the exemption and deduction part.

I have already mentioned if ur exemptions+ deduction is 8L+ (compared to new regime) then u will get benefitted. Problem is the deduction amount more than 5L is unusual. Seems to be an indication of problem within itself.
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Exactly. almost 10L deduction is somewhat fishy. Let it be. As long as he is claiming it right and not caught, he should be happy.
 
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