Income Tax Calculations: What will be your tax liability if your salary is Rs 8.25 lakh, Rs 14.50 lakh, Rs 20.75 lakh, or Rs 26.10 lakh? See calculations

Old vs New Tax Regime: The announcement of revised new tax slabs in Union Budget 2025 gave relief to crores of taxpayers in India.

The tax-free income limit for non-salaried-class individuals is Rs 12,00,000 in a financial year, while for salaried-class individuals, it is Rs 12,75,000.

However, the proposed new tax regime will be applicable from the financial year 2025-26.

For FY2526, the existing new regime and the old tax regime will be applicable.

Taxpayers can select the tax regime based on their income and investments in various tax-saving schemes.

But how much income tax you may need to pay in the existing new, proposed new, and old tax regimes if your annual income is Rs 8.25 lakh, Rs 14.50 lakh, Rs 17.70 lakh, Rs 20.75 lakh, Rs 23.75 lakh, and Rs 26.10 lakh.

Existing new tax regime slabs

Proposed new tax regime slabs

Old new tax regime slabs

Proposed vs Existing New Tax Regime: What are the main changes?

• The main change is that income up to Rs 700,000 is tax-free in the existing new tax regime.
• In the proposed tax regime, the tax-free income limit is Rs 12,00,000 for non-salaried class individuals, while the limit is Rs 12,75,000 for salaried-class individuals.
• Other than that, the 5 per cent tax slab will start from Rs 4 lakh instead of Rs 3 lakh.
• The 10 per cent tax slab will start from Rs 8 lakh instead of Rs 7 lakh.
• The 15 per cent tax slab will begin from Rs 12 lakh instead of Rs 10 lakh.
• The 20 per cent tax slab will start from 16 lakh instead of Rs 12 lakh.
• A new tax slab of 25 per cent will be introduced, which will start from Rs 20 lakh.
• The 30 per cent tax slab will begin from Rs 24 lakh instead of Rs 15 lakh.

Marginal relief and rebate

The proposed new tax regime followers will get a maximum rebate of Rs 60,000, while if their taxable income increases slightly above Rs 12 lakh, they will have to pay tax just on the incremental value.

Claculations for story

We will calculate income tax for a salaried-class individual for an annual income of Rs 8.25 lakh, Rs 11.50 lakh, Rs 14.50 lakh, Rs 17.70 lakh, Rs 23.75 lakh, and Rs 26.10 lakh. We will not consider any tax dedcution for our story.

Old vs new tax regime: Tax on Rs 8.25 lakh income

• Existing new tax regime- Rs 26,000
• Proposed new tax regime- 0
• Old tax regime- Rs 70,200

Old vs new tax regime: Tax on Rs 11.50 lakh income

• Existing new tax regime- Rs 63,700
• Proposed new tax regime- 0
• Old tax regime- Rs 1,48,200

Old vs new tax regime: Tax on Rs 14.50 lakh income

• Existing new tax regime- Rs 1,19,600
• Proposed new tax regime- Rs 89,700
• Old tax regime- Rs 2,41,800

Old vs new tax regime: Tax on Rs 17.70 lakh income

• Existing new tax regime- Rs 2,06,440
• Proposed new tax regime- Rs 1,44,560
• Old tax regime- Rs 3,41,640

Old vs new tax regime: Tax on Rs 23.75 lakh income

• Existing new tax regime- Rs 3,95,200
• Proposed new tax regime- Rs 2,86,000
• Old tax regime- Rs 5,30,400

Old vs new tax regime: Tax on Rs 26.10 lakh income

• Existing new tax regime- Rs 4,68,520
• Proposed new tax regime- Rs 3,54,120
• Old tax regime- Rs 6,03,720