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The New Tax Regime has been the default since FY 2023-24, but Budget 2025 further sweetened it. Here's what changed and what it means for you.
Key Changes in Budget 2025
The standard deduction for salaried individuals has been raised to ₹75,000 under the New Regime — up from ₹50,000. Additionally, the rebate under Section 87A now covers income up to ₹12,00,000, meaning those earning up to this threshold (after the standard deduction) pay zero tax.
The New Slabs at a Glance
| Income Range | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Should You Switch?
If your total deductions (80C + HRA + home loan interest + NPS) are under approximately ₹3.75L, the New Regime likely works in your favour. For higher deduction profiles, the Old Regime still holds value.
When to book a consultation: If your gross income is above ₹15L and you have significant deductions, the numbers deserve a proper comparison. Book a free call — we'll run the exact figures.