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This triggers an old debate between old tax regime and new tax regime. However, if you are also confused between which tax regime to opt for, all you need to do is to enter all yo

According to Budget 2025, under the new tax system, you don’t have to pay tax on income up to ₹12.5 lakh. This is a big jump and helps many middle-income earners. The catch is that the new system doesn’t give you tax deductions like the old one. But because the tax rates are lower, you still end up saving money.

Under the new income tax regime, taxpayers can now avail of a standard deduction of up to Rs 75,000, which makes an annual income of up to Rs 12.75 lakh tax-free. This deduction brings a significant relief for many taxpayers, as it reduces the taxable income further.

The new tax regime provides lower tax rates and fewer deductions, eliminating the need for investment in tax-saving schemes and insurance plans which may not be in symmetry with your financial goals.