New Tax Regime
India's default income tax regime since FY 2023-24 — lower slabs (5%/10%/15%/20%/30%) but no 80C, 80D, HRA, or home loan deductions.
Definition
The new tax regime, made default since FY 2023-24, offers lower slab rates in exchange for foregoing most deductions. Slabs (FY 2025-26 and FY 2026-27): ₹0-4L nil, ₹4-8L 5%, ₹8-12L 10%, ₹12-16L 15%, ₹16-20L 20%, ₹20-24L 25%, above ₹24L 30%. Section 87A rebate covers tax up to ₹12L taxable income, making net tax zero up to that point — and with the ₹75,000 standard deduction, a salary up to ₹12.75L pays nothing.
Standard deduction of ₹75,000 applies to salaried/pensioners. NPS 80CCD(2) employer contribution remains deductible. Section 80CCH agniveers' contribution remains. Nothing else — no 80C, 80D, HRA, home loan interest (self-occupied), or LTA exemption.
Calculators that use this
Income Tax India
Calculate India income tax under both Old and New regimes side-by-side. See which regime saves more, with 87A rebate, cess, and standard deduction applied.
Open calculator80C Saver
Calculate the actual tax saved from your 80C, 80CCD(1B) NPS, and 80D health insurance deductions across all old-regime tax slabs.
Open calculatorRelated terms
More Tax terms
See all 60 glossary terms or read our Methodology for how we source these definitions.