New Tax Regime Calculations: The new tax regime slabs are applicable from April 1, 2025, where your annual salary income of Rs 12.75 lakh is tax-free. This is in stark contrast to the earlier new regime tax-free limit of Rs 7 lakh. But even if you were following the new tax regime, how much tax monthly would you save if your salary is Rs 10 lakh, Rs 15 lakh, Rs 25 lakh, Rs 35 lakh, or Rs 45 lakh?
New Tax Regime Calculations: The new financial year (FY2526) started on April 1, 2025. With it, the revised new income tax regime also came into existence. It offers Rs 12 lakh tax-free income to non-salaried individuals and Rs 12.75 lakh to salaried-class individuals. The new slabs will be applicable for taxpayers who will file their Income Tax Return (ITR) for FY2526. Many of the taxpayers who had been filing their ITR under the new tax regime can only save a significant amount every month in the revised slabs. Know how much they can save in a year and a month if they opt for revised new tax slab rates if their annual salary income is Rs 10 lakh, Rs 13 lakh, Rs 15 lakh, Rs 25 lakh, Rs 35 lakh, or Rs 45 lakh.
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(Disclaimer: Our calculations are projections. Actual calculations may vary slightly.)
What are previous new tax slab rates?
In the previous new tax regime, there was nil tax on income till Rs 3 lakh, but after a rebate, income up to Rs 7 lakh in a financial year was tax-free. The 10 per cent slabs started from Rs 7,00,001, 15 per cent from Rs 10,00,001, 20 per cent from Rs 12,00,001, and 30 per cent on an income above Rs 15 lakh.
Current new tax regime slabs
The current new tax regime was proposed by Finance Minister Nirmala Sitharaman during her Budget 2025 speech in February 2025. It brought significant changes, as the nil tax limit was increased to Rs 4 lakh, the 5 per cent tax slab started from Rs 4 lakh, 10 per cent from Rs 8,00,001, 15 per cent from Rs 12,00,001, 20 per cent from Rs 16,00,001, 25 per cent from Rs 20,00,001, and 30 per cent from Rs 24,00,001.
Tax-free income limit in new tax regime
Another significant change was that the tax-free income limit was increased to Rs 12,00,000. For salaried-class individuals, this limit was 1,275,000.
Standard deduction for salaried-class individuals
Salaries-class individuals are getting an extra tax relaxation of Rs 75,000 because under Section 87A, they get a standard deduction of Rs 75,000.
Rs 60,000 tax rebate in new tax regime
If we calculate tax liability slab-wise, an individual earning Rs 12 lakh will have to pay Rs 60,000 in tax. But under Section 87A, the same person gets a maximum tax rebate of Rs 60,000, which makes their income of Rs 12 lakh tax-free.
Marginal tax relief for new regime taxpayers
Another important benefit that the new tax regime offers is that if a taxpayer’s income increases slightly from the tax-free limit, they don’t have to pay tax more than the incremental income. E.g., if an individual has an income of Rs 12,05,000, they don’t have to pay tax on the entire amount. Their total tax liability will be Rs 5,000 plus 4 per cent (education and health cess) of the incremental income.
We will have 2 calculations. In the first calculation, we will calculate the tax liability under the previous new tax regime. In the second calculation, we will calculate how much they need to pay in the revised new tax regime. We will also say how much yearly and per month a person will save in the current new tax regime if their annual income is Rs 10 lakh, Rs 15 lakh, Rs 25 lakh, Rs 35 lakh, or Rs 45 lakh.
Tax saving at Rs 10 lakh income
New tax regime for FY2425- 44,200
New tax regime for FY2526- 0
Amount you will save (yearly)- Rs 44,200
Amount you will save (monthly)- Rs 3,683
Tax saving at Rs 13 lakh income
New tax regime for FY2425- Rs 88,400
New tax regime for FY2526- Rs 26,000
Amount you will save (yearly)- Rs 62,400
Amount you will save (monthly)- Rs 5,200
Tax saving at Rs 15 lakh income
New tax regime for FY2425- Rs 1,30,000
New tax regime for FY2526- Rs 97,500
Amount you will save (yearly)- Rs 32,500
Amount you will save (monthly)- Rs 2,708.33
Tax saving at Rs 25 lakh income
New tax regime for FY2425- Rs 4,34,200
New tax regime for FY2526- Rs 3,19,800
Amount you will save (yearly)- Rs 1,14,400
Amount you will save (monthly)- Rs 9,533.33
Tax saving at Rs 35 lakh income
New tax regime for FY2425- Rs 7,46,200
New tax regime for FY2526- Rs 6,31,800
Amount you will save (yearly)- Rs 1,14,400
Amount you will save (monthly)- Rs 9,533.33
Tax saving at Rs 45 lakh income
New tax regime for FY2425- Rs 10,58,200
New tax regime for FY2526- Rs 9,43,800
Amount you will save (yearly)- Rs 1,14,400
Amount you will save (monthly)- Rs 9,533.33
