As we know, in indian Government Budget 2025-26 have changed in the new tax slab which now up to 12.75 lakhs income earners have no need to pay tax. So, let’s come with me, i will describe all points to point which you have to know. If your earring is near about 12 lakhs and even 12.57 Lakhs then no need to pay tax because some deduction which was 50 thousand now increased to 75 Thousand in case of a salaried person
Let’s go ahead
Income tax old Regime and New tax regime compression.
OLD TAX Regime
Deduction is like .
80 C -up to 1,50,000.
80 D – For Health Insurance
HRA(House rent allowance).
Standard Deduction etc.
New Regime for Financial Year 2025-26 (Assessment Year 2026-27)
Deduction:
Standard deduction: now 75 thousands
Here no any 80C and 80D, no HRA(House rent allowance)
I am talking here only for Salaried person so i will suggest and will show you regarding which one is best for salaried person.
Here rebate have increased in 87A income tax regime from last year tax regime 2024-25 if your income is 7 lakhs in a year and your all tax is calculated 25000 and in financial year 2025-26 your total income is 12 lakhs and total tax is up to 60,000 then fully rebate.
So your taxable income is 12 lakhs in financial year 2025-26 then you have to no need to pay tax because your tax is zero.
Here, one more thing is MARGINAL RELIEF given, like if your income is increase slightly from 12 lakhs, then tax payable does not exceed the amount which exceed 12 lakhs
I will explain this with two scenario
Example 1 – lets assume your year income is 12 lakhs
Assume your tax is 60,000.
And rebate under 87A 60,000
So you have to pay tax 0
Example -2 your yearly income is 12.10 lakhs
Here your income slightly increased by 10 thousand
Your total tax assumes 61000.
Then you have to pay only 10 thousand tax instead of 61000.
Now we are come on the conclusion
if your income is less than 12 lakhs, then sure you should take new tax regime. If your investment is not more than also take the new tax regime. As per the new income tax rule, if you are not opting for the tax regime, then by default your tax regime will convert in new tax regime.
