New Tax Regime
Tax term
The new tax regime offers lower slab rates but removes almost all deductions and exemptions — and it is now the default.
It suits people who don't claim large deductions, helped by the ₹75,000 standard deduction and the 87A rebate making income up to ₹12 lakh tax-free. You can still opt for the old regime if your deductions are large.
More tax terms
Section 80CSection 80C lets you deduct up to ₹1.5 lakh a year from your taxable income for specified investments and expenses — but only under the old tax regime.Section 80DSection 80D allows a deduction for health-insurance premiums — up to ₹25,000 for yourself and family, and another ₹25,000 (₹50,000 if senior citizens) for parents.LTCGLTCG is the profit on an asset held beyond a threshold period — and it is taxed at a lower rate than short-term gains.STCGSTCG is the profit on an asset sold within the short-term holding period, taxed at a higher rate than long-term gains.Section 87A RebateThe Section 87A rebate cancels your income tax entirely if your taxable income is at or below a threshold — making lower incomes effectively tax-free.Standard DeductionThe standard deduction is a flat amount subtracted from salary income before tax, with no bills or proof required.