Which Tax Regime is Best for Salaried Employees in FY 2025-26?

By Priya Gupta | Category: Income Tax | Published on April 8, 2025

πŸ‘ 144 Views

When it comes to paying taxes, one of the most common questions salaried individuals ask is:

“Should I go with the old tax regime or switch to the new one?”

With changing slabs, rebates, and deductions every year, it can get confusing — especially for FY 2025-26.

Let’s simplify it for you. πŸ‘‡

🧾 Quick Refresher: The Two Tax Regimes

βœ… Old Tax Regime

  • Higher tax rates but allows multiple deductions and exemptions.
  • Useful if you invest in things like LIC, PPF, home loan, HRA, etc.
  • You can claim deductions under:
    • Section 80C (up to β‚Ή1.5 lakh)
    • Section 80D (Health Insurance)
    • HRA, LTA, Education loan interest & more.

βœ… New Tax Regime

  • Lower tax rates, but no major deductions or exemptions allowed.
  • Ideal for those who:
    • Don’t have many investments or expenses to claim.
    • Prefer a hassle-free, simple tax process.
  • New changes for FY 2025-26:
    • Standard Deduction of β‚Ή75,000 for salaried employees.
    • Rebate for incomes up to β‚Ή7 lakh.

πŸ“Š So… Which One Is Right for You?

Honestly? It depends on your salary and how much you invest or spend on deductions.

Here’s a quick example:

Annual Income

Deductions You Claim

Better Regime

β‚Ή10 lakh

Less than β‚Ή1 lakh

New

β‚Ή10 lakh

β‚Ή2.5 lakh+

Old

β‚Ή7 lakh

Nil

New (due to β‚Ή25,000 rebate)

Still confused?

πŸ” Try Our Free Tax Regime Calculator!

Don’t waste time with guesswork or spreadsheets.

🎯 Just use the FileBob Old vs New Tax Regime Calculator — it’s fast, simple, and absolutely FREE.

πŸ‘‰ filebob.in/old-vs-new-tax-regime-calculator.php

Enter your income and deductions, and we’ll show you exactly which regime saves you more tax!

πŸ’‘ Final Thoughts

Every taxpayer is different. If you claim a lot of deductions, the old regime might still be worth it. But if you prefer fewer documents and straightforward taxes, the new regime could be your best bet.

Whichever you choose, FileBob is here to help you save more and file smart.

βœ… Compare now and make an informed choice:
πŸ‘‰ filebob.in/old-vs-new-tax-regime-calculator.php

About the Author

Priya Gupta is a contributor at Filebob, writing on Income Tax and related topics. View all posts by this author.

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Source: Taxopedia – reproduced intact for educational reference.

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