return to news
  1. Upstox
    /
  2. News
    /
  3. Personal Finance News
    /
  4. Tax
    /
  5. New Tax Regime comparison FY 2025-26 vs 2024-25: How net tax saving increases from ₹13 lakh to ₹24 lakh income

Personal Finance News

New Tax Regime comparison FY 2025-26 vs 2024-25: How net tax saving increases from ₹13 lakh to ₹24 lakh income

rajeev kumar
By Rajeev Kumar

3 min read | Updated on February 11, 2025, 14:27 IST

Twitter Page
Linkedin Page
Whatsapp Page

SUMMARY

Under the proposed slabs in the new tax regime, the basic exemption limit will go up from ₹3 lakh to ₹4 lakh while the rebate under section 87A will increase to ₹60,000.

new tax regime calculator

The tax rebate of ₹60,000 will apply to income up to ₹12 lakh. | Image source: Shutterstock

The Finance Bill 2025 has proposed to revise the tax slabs and rebate under the new tax regime to make income up to ₹12 lakh tax-free from FY 2025-26.

Under the proposed slabs in the new tax regime, the basic exemption limit will go up from ₹3 lakh to ₹4 lakh while the rebate under section 87A will increase to ₹60,000. Income-tax rates have also been proposed to be revised for different slabs (you can check all new slabs and rates here)
According to the finance bill, the tax rebate of ₹60,000 will apply to income up to ₹12 lakh. However, this rebate will be available only for normal incomes such as salary, pension, bank deposits, etc. It won’t apply to special rate incomes such as capital gains from equity shares or mutual funds.

How much tax can you save

Since the announcement of the finance bill provisions in the recent budget, many taxpayers have been curious about the total tax savings they may achieve due to the proposed changes in the new tax regime for the next financial year, starting April 1, 2025.

The income-tax calculator shows that net tax saving due to the proposed changes increases from ₹26,000 to ₹1.14 lakh as the income level goes up from ₹13 lakh to ₹24 lakh. However, the maximum tax saving on income above ₹24 lakh is ₹1.14 lakh only.
Taxpayers can easily compute their net tax savings due to the proposed changes by using this tax calculator.

Meanwhile, the following table will give you an overview of the net tax savings:

Tax-saving on income from ₹12 lakh to ₹24 lakh

Taxable income*Tax for FY 2024-25** (₹)Tax for FY 2025-26** (₹)Net tax savings in FY 2025-26 (₹)
₹12 lakh83,200083,200
₹13 lakh1,04,00078,00026,000
₹14 lakh1,24,80093,60031,200
₹15 lakh1,45,6001,09,20036,400
₹16 lakh1,76,8001,24,80052,000
₹17 lakh2,08,0001,45,60062,400
₹18 lakh2,39,2001,66,40072,800
₹19 lakh2,70,4001,87,20083,200
₹20 lakh3,01,6002,08,00093,600
₹21 lakh3,32,8002,34,00098,800
₹22 lakh3,64,0002,60,0001,04,000
₹23 lakh3,95,2002,86,0001,09,200
₹24 lakh4,26,4003,12,0001,14,400
₹25 lakh4,57,6003,43,2001,14,400
*Special rate incomes have not been included for calculation in this table.
**Tax includes health and education cess and surcharge
The Income-tax department also recently released a tool to help taxpayers compare tax savings under the new tax regime in FY 2025-26 vs FY 2024-25.

Please note that the above table gives a general idea of the net tax savings due to proposed changes in the new regime. For calculation, only taxable income has been considered. Net tax savings may vary in actual cases as specific rules of the Income-tax Act, 1961 will be required for calculating tax liability.

Upstox

About The Author

rajeev kumar
Rajeev Kumar is a Deputy Editor at Upstox, and covers personal finance stories. In over 11 years as a journalist, he has written over 2,000 articles on topics like income tax, mutual funds, credit cards, insurance, investing, savings, and pension. He has previously worked with organisations like 1% Club, The Financial Express, Zee Business and Hindustan Times.

Next Story