Old Tax Regime FY 2025-26 — Slabs, Deductions & When to Choose It

Updated: 3 June 2026 | Section 115BAC, Income Tax Act | FY 2025-26 (AY 2026-27)

Old tax regime slabs FY 2025-26 (individuals below 60): Up to ₹2.5L — Nil; ₹2.5L–₹5L — 5%; ₹5L–₹10L — 20%; Above ₹10L — 30%. Section 87A rebate of ₹12,500 applies for net income up to ₹5L (effective tax = zero). Standard deduction: ₹50,000. Allows all deductions: 80C (₹1.5L), 80D, HRA, home loan interest 24(b), and more. Must be opted explicitly — new regime is default from FY 2023-24 onwards.

₹3.75L

Old regime useful if total deductions exceed ₹3.75 lakh
This is the approximate break-even deduction amount (beyond standard deduction) where old regime saves more than new regime at ₹10–15L income.

Old Tax Regime Slabs — FY 2025-26

Income Slab	Individual (Below 60)	Senior Citizen (60–79)	Super Senior (80+)
Up to ₹2,50,000	Nil	Nil	Nil
₹2,50,001 – ₹3,00,000	5%	Nil	Nil
₹3,00,001 – ₹5,00,000	5%	5%	Nil
₹5,00,001 – ₹10,00,000	20%	20%	20%
Above ₹10,00,000	30%	30%	30%
+ 4% Health & Education Cess on tax. Surcharge applicable above ₹50L income.

Senior citizens (60–79 years) get a higher basic exemption of ₹3 lakh. Super senior citizens (80+ years) get ₹5 lakh basic exemption, making their effective tax structure significantly better under old regime.

Old Regime Break-Even — When Does It Save More Than New Regime?

Gross Income	New Regime Tax*	Old Regime Break-Even Deduction	Key Deductions to Reach It
₹8,00,000	₹46,800	~₹1.75L (beyond std. deduction)	80C ₹1.5L + 80D ₹25K
₹10,00,000	₹78,000	~₹2.5L (beyond std. deduction)	80C + 80D + small HRA
₹12,00,000	₹1,17,000	~₹3.25L (beyond std. deduction)	80C + HRA + home loan
₹15,00,000	₹1,56,000	~₹3.75L (beyond std. deduction)	80C + HRA + 24(b) ₹2L
₹20,00,000	₹2,96,400	~₹5L+ (beyond std. deduction)	80C + HRA + 24(b) + 80D

*New regime tax figures include 4% cess. Break-even deductions are approximate and vary with income level and slab structure.

Key Deductions Available in Old Tax Regime

Section	Deduction	Max Limit
Standard Deduction	Salary/pension earners	₹50,000
Section 80C	PPF, ELSS, LIC, NSC, EPF, home loan principal	₹1,50,000
Section 80CCD(1B)	NPS additional contribution	₹50,000
Section 80D	Health insurance premium	₹25,000–₹50,000
Section 24(b)	Home loan interest (self-occupied)	₹2,00,000
HRA Exemption (10(13A))	House Rent Allowance — metro 50%, non-metro 40%	Actual exempt amount
Section 80E	Education loan interest	No upper limit (8 years)
Section 80G	Donations to approved funds	50–100% of donation
LTA Exemption	Leave Travel Allowance (2 journeys in 4 years)	Actual fare (economy)

Frequently Asked Questions

What are the old tax regime slabs for FY 2025-26?

Old tax regime slabs for individuals below 60 years in FY 2025-26: Up to ₹2.5 lakh — Nil; ₹2.5L–₹5L — 5%; ₹5L–₹10L — 20%; Above ₹10L — 30%. A Section 87A rebate of ₹12,500 is available if total income (after deductions) does not exceed ₹5 lakh, making the effective tax zero up to ₹5L net income. Surcharge and cess (4%) apply above certain income thresholds.

Which deductions are available in the old tax regime?

The old tax regime allows all major deductions and exemptions: Section 80C (up to ₹1.5L — PPF, ELSS, LIC, NSC, home loan principal); Section 80D (health insurance up to ₹25K–₹50K); HRA exemption under Section 10(13A); Standard deduction of ₹50,000; Home loan interest under Section 24(b) up to ₹2L; Section 80CCD(1B) additional NPS ₹50K; Leave Travel Allowance (LTA); Section 80G donations; Section 80E education loan interest; and many more. These can significantly reduce taxable income.

Is old regime better if you have a home loan?

Yes, typically. Under the old regime you can claim: (1) Home loan interest deduction under Section 24(b) — up to ₹2 lakh per year for self-occupied property; (2) Home loan principal repayment under 80C — counted within the ₹1.5L limit. Neither of these is available in the new regime. If your home loan interest alone is ₹1.5–2 lakh per year, combined with 80C and other deductions, the old regime almost certainly saves more tax for incomes up to ₹15–20 lakh.

How do I switch to the old tax regime?

From FY 2023-24 onwards, the new regime is the default. To opt for old regime: For salaried employees — inform your employer at the start of the financial year via Form 12BB or your employer's declaration form; you can change once per year. For filing ITR — select the old regime option in your ITR form before the due date. For business income taxpayers — you can switch between regimes only once in a lifetime by filing Form 10-IEA. Salaried individuals (no business income) can switch every year.

Old regime vs new regime: which is better for ₹15L income?

At ₹15L income, the new regime tax (without deductions) is approximately ₹1.5L. Under the old regime, if you claim standard deduction ₹50K + 80C ₹1.5L + 80D ₹25K = ₹2.25L total deductions, taxable income = ₹12.75L, and tax ≈ ₹1.37L — slightly better. But if you also have HRA exemption of ₹1.5L or home loan interest of ₹2L, old regime saves substantially more. The break-even is roughly when total deductions (beyond standard deduction) exceed ₹3.75L. If your deductions are below this, the new regime is likely better.

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