The Budget 2025 has once again Revised (and effectively reduced) the tax slabs for ONLY the new tax regime (read more here). Here is a comparison table of the New tax regime Slabs vs. Old tax regime Slabs (applicable from 1st April 2025 onwards).
New Regime Tax Slabs Vs Old Regime Tax Slabs (2025)
| Income Tax Slabs | Old Tax Regime Tax Rates | New Tax Regime Rates |
| 0 – Rs 2.5 lakh | 0% | 0% |
| Rs 2.5 – 4 lakh | 5% | 0% |
| Rs 4 – 5 lakh | 5% | 5% |
| Rs 5 – 8 lakh | 20% | 5% |
| Rs 8 – 10 lakh | 20% | 10% |
| Rs 10 – 12 lakh | 30% | 10% |
| Rs 12 – 16 lakh | 30% | 15% |
| Rs 16 – 20 lakh | 30% | 20% |
| Rs 20 – 24 lakh | 30% | 25% |
| Rs 24 lakh + | 30% | 30% |
Also, if someone is earning less than Rs 12 lakh and has opted for the new tax regime, then he/she will not have to pay any taxes as they will get a rebate under section 87A up to Rs 12 lakh taxable income. That is you have a Tax-Free Income of Rs 12 lakh under the new regime.
So that was the comparison table for the latest New Tax Regime vs Old Tax regime. The revised rates/slabs of the new regime will be applicable from 1st April 2025 onwards.