🇮🇳 India — FY 2025-26 Income Tax Slabs
The new tax regime is the default for FY 2025-26. A landmark change from Budget 2025: income up to ₹12.75 lakh is effectively tax-free for salaried employees — thanks to the enhanced ₹60,000 Section 87A rebate plus ₹75,000 standard deduction.
| Income Range | New Regime | Old Regime |
|---|
| Up to ₹2.5L | NIL | NIL |
| ₹2.5L – ₹4L | NIL | 5% |
| ₹4L – ₹8L | 5% | 20% (from ₹5L) |
| ₹8L – ₹12L | 10% | 20% |
| ₹12L – ₹16L | 15% | 30% (from ₹10L) |
| ₹16L – ₹20L | 20% | 30% |
| ₹20L – ₹24L | 25% | 30% |
| Above ₹24L | 30% | 30% |
How is CTC Different from In-Hand Salary?
Your CTC (Cost to Company) includes employer PF (12% of basic), gratuity (~4.81%), and group insurance — none of which you receive monthly. In-hand salary = Gross − Employee PF − Professional Tax − TDS. Most salaried employees receive 65–75% of their CTC as monthly take-home.
Frequently Asked Questions
Is income up to ₹12 lakh really tax-free in FY 2025-26? +
Yes. Under the new tax regime, the 87A rebate of ₹60,000 wipes out tax for income up to ₹12 lakh. With the ₹75,000 standard deduction, salaried employees earning up to ₹12.75 lakh pay zero income tax.
What is the difference between CTC and in-hand salary? +
CTC includes employer PF, gratuity, and group insurance in addition to your gross salary. In-hand is what reaches your bank: Gross minus employee PF, professional tax, and TDS. The gap is typically 25–35% of CTC.
Which tax regime is better — new or old? +
New regime wins if your total deductions (HRA + 80C + 80D + home loan) are less than ~₹3.75 lakh. Old regime is better with high rent, maxed 80C, health insurance, and a home loan. Use the comparison toggle above.
What is the standard deduction in FY 2025-26? +
₹75,000 — applicable under both old and new regimes for all salaried employees. No proof needed, it is automatically applied.
How is PF calculated on salary? +
Employee PF = 12% of basic salary, capped at ₹1,800/month. Employer also contributes 12% of basic — this is part of your CTC but does not come to you monthly.