Question 1

Do I pay zero tax if my income is up to ₹12 lakh?

Accepted Answer

Under the new tax regime for FY 2025-26, if your total taxable income (after the standard deduction) is ₹12,00,000 or less, the Section 87A rebate cancels your calculated tax down to zero. The slab rates (5%, 10%, etc.) are still used to calculate tax first, the rebate is what brings it to zero afterward. This does not apply to capital gains or other special-rate income.

Question 2

What are the income tax slabs for FY 2025-26 under the new regime?

Accepted Answer

0% up to ₹4,00,000, 5% from ₹4,00,001 to ₹8,00,000, 10% from ₹8,00,001 to ₹12,00,000, 15% from ₹12,00,001 to ₹16,00,000, 20% from ₹16,00,001 to ₹20,00,000, 25% from ₹20,00,001 to ₹24,00,000, and 30% above ₹24,00,000.

Question 3

Should I choose the old or new tax regime?

Accepted Answer

The new regime usually works out cheaper if you don't claim large deductions like 80C investments, HRA, or home loan interest. The old regime can still be cheaper if you have significant deductions to claim. This calculator computes both and shows which one is lower for your numbers.

Question 4

What is the standard deduction for FY 2025-26?

Accepted Answer

₹75,000 under the new regime and ₹50,000 under the old regime, for salaried individuals and pensioners. It's subtracted from your gross income before tax is calculated, no proof or investment required.

Do I owe tax?