New Tax Regime Calculations: The proposed new tax regime slabs have been applied from April 1, 2025. Taxpayers can pick revised tax slab rates for the income earned in the financial year 2025-26.
New Tax Regime Calculations: The financial year 2025-26 began on April 1, and with that, revised tax slabs for the new tax regime also came into effect. Taxpayers for the income earned during the financial year 2025-26 can file their income tax under the revised new tax regime, which was announced during Finance Minister Nirmala Sitharaman’s Budget 2025 speech in February this year. Taxpayers, however, still have the option to file their Income Tax Return (ITR) under the old tax regime. The revised new tax regime may help save salaried-class individuals a significant amount every month. In some cases, they may save nearly Rs 10,000 a month, as per a study by BankBazaar.com. “As a new financial year starts, the new income tax slabs kick in. Your tax-free income will increase under the new tax regime, which has now become the default regime, says Adhil Shetty, CEO, BankBazaar.com.
“The new rules impact each taxpayer basis their unique financials. But we see monthly savings under the new slabs up to ₹9,533 — something for the salaried to look forward to,” he said.
Compared to new tax regime slabs, which became obsolete from March 31, 2025, know how much monthly amount you may save on salary brackets from Rs 10 lakh to Rs 50 lakh if you file your ITR under the revised new tax regime.
New regime tax slabs
Let’s see what the tax slabs were in the new tax regime, which is applicable for the financial year 2024-25.
Revised new regime tax slabs
Now, see what are the main changes for the new tax regime.
Main features of revised tax regime (tax-free limit)
The most striking feature is the tax-free limit of Rs 12 lakh for non-salaried-class individuals and Rs 12.75 lakh for salaried-class individuals. In the previous tax regime, the tax-free limit was Rs 7 lakh.
Income tax rebate
The maximum income tax rebate for a taxpayer under Section 87A of the Income Tax Act, 1961, is Rs 60,000. As per revised new regime tax slabs, the tax on a Rs 12 lakh income is Rs 60,000. But after the rebate, the tax becomes 0.
Rs 75,000 standard deduction for salaried-class individuals
Salaried-class individuals get an extra Rs 75,000 standard deduction. With that, their income tax-free limit increases to Rs 12,75,000.
Marginal tax relief
A lot of taxpayers may think, what if they are earning Rs 5,000 or Rs 10,000 more than the tax-free income limit?’ Will they have to pay tax on their entire income or the incremental income? For such people, the concept of marginal relief will work. Under this rule, if the income of a taxpayer is slightly above the tax-free limit, their tax can’t be more than their incremental income.
Tax saving for Rs 10 lakh-Rs 12.5 lakh income
- At Rs 10 lakh income
New tax regime for FY2425- 44,200
New tax regime for FY2526- 0
Amount you will save (yearly)- Rs 44,200
Amount you will save (monthly)- Rs 3,683
- Tax saving at Rs 12.5 lakh income
New tax regime for FY2425- Rs 79,300
New tax regime for FY2526- 0
Amount you will save (yearly)- Rs 79,300
Amount you will save (monthly)- Rs 6,608
Tax saving for Rs 15 lakh, Rs 17.5 lakh
- Tax saving at Rs 15 lakh income
New tax regime for FY2425- Rs 1,30,000
New tax regime for FY2526- Rs 97,500
Amount you will save (yearly)- Rs 32,500
Amount you will save (monthly)- Rs 2,708
- Tax saving at Rs 17.5 lakh income
New tax regime for FY2425- Rs 2,00,2,000
New tax regime for FY2526- Rs 1,40,400
Amount you will save (yearly)- Rs 59,800
Amount you will save (monthly)- Rs 4,983
Tax saving for Rs 20 lakh, Rs 25 lakh income
- At Rs 20 lakh income
New tax regime for FY2425- Rs 2,78,000
New tax regime for FY2526-Rs 1,92,400
Amount you will save (yearly)- Rs 85,600
Amount you will save (monthly)- Rs 7,133
- At Rs 25 lakh income
New tax regime for FY2425- Rs 4,34,200
New tax regime for FY2526- Rs 3,19,799
Amount you will save (yearly)- Rs 1,14,401
Amount you will save (monthly)- Rs 9,533
Tax saving for Rs 30 lakh, Rs 35 lakh income
- Tax saving at Rs 30 lakh income
New tax regime for FY2425- Rs 5,90,200
New tax regime for FY2526- Rs 4,75,799
Amount you will save (yearly)- Rs 1,14,401
Amount you will save (monthly)- Rs 9,533
- Tax saving at Rs 35 lakh income
New tax regime for FY2425- Rs 7,46,200
New tax regime for FY2526- Rs 6,31,799
Amount you will save (yearly)- Rs 1,14,401
Amount you will save (monthly)- Rs 9,533
Tax saving for Rs 40 lakh, Rs 50 lakh income
- Tax saving at Rs 40 lakh income
New tax regime for FY2425- Rs 9,02,200
New tax regime for FY2526- Rs 7,87,799
Amount you will save (yearly)- Rs 1,14,401
Amount you will save (monthly)- Rs 9,533
- Tax saving at Rs 45 lakh income
New tax regime for FY2425- Rs 10,58,200
New tax regime for FY2526- Rs 9,43,799
Amount you will save (yearly)- Rs 1,14,401
Amount you will save (monthly)- Rs 9,533
- Tax saving at Rs 50 lakh income
New tax regime for FY2425- Rs 12,14,200
New tax regime for FY2526- Rs 10,99,799
Amount you will save (yearly)- Rs 1,14,401
Amount you will save (monthly)- Rs 9,533
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