As the new income tax regime becomes the default from FY 2023–24 onwards, more taxpayers are asking:
“Which regime helps me save more tax in FY 2025–26?”
In this blog, Vizzve Finance breaks down:
Key differences between the regimes
Who benefits under each regime
Tips to reduce tax liability
Tools to compare and choose wisely
📊 Tax Slab Comparison – New vs Old (FY 2025–26)
| Income Slab | Old Regime | New Regime |
|---|---|---|
| Up to ₹2.5L | Nil | Nil |
| ₹2.5L – ₹5L | 5% | 5% |
| ₹5L – ₹7L | 20% | 10% |
| ₹7L – ₹10L | 20% | 15% |
| ₹10L – ₹12L | 30% | 20% |
| ₹12L – ₹15L | 30% | 25% |
| Above ₹15L | 30% | 30% |
📌 New Regime Benefit: Rebate under Section 87A up to ₹7 lakh means zero tax for many middle-income earners—but with no deductions.
💡 Which Regime Should You Choose in FY 2025–26?
✅ Choose Old Regime if:
You claim deductions like:
₹1.5L under Section 80C (LIC, PPF, ELSS)
₹25,000 under Section 80D (Health Insurance)
₹2L under Section 24(b) (Home Loan Interest)
You invest regularly in tax-saving instruments
You donate under 80G, pay education loan interest (80E), etc.
✅ Choose New Regime if:
You have fewer or no deductions
You prefer lower rates without complex documentation
You are a young salaried individual not investing in 80C instruments
🧮 Tax Saving Example – ₹12 Lakh Salary (FY 2025–26)
| Scenario | Old Regime | New Regime |
|---|---|---|
| Gross Income | ₹12,00,000 | ₹12,00,000 |
| 80C (LIC, PPF) | -₹1,50,000 | Not applicable |
| 80D (Medical) | -₹25,000 | Not applicable |
| Standard Deduction | -₹50,000 | ₹50,000 |
| Taxable Income | ₹9,75,000 | ₹11,50,000 |
| Tax Payable | ₹95,400 | ₹1,14,000 |
Result: Old regime is better if you're using your deductions.
Use Vizzve’s tax comparison tool to calculate for your income and investments.
🧠 How Vizzve Finance Helps You Save More
At Vizzve, we make tax planning easy and personalized:
📱 Tax regime selector tool (based on your profile)
💼 Maximize deductions through 80C/80D investment tracking
📊 Instant tax calculation for both regimes
🧾 Help with documentation and proof uploads
📈 Auto-reminders to invest before March 31
✅ Vizzve’s Top Tips to Save Tax in FY 2025–26
Track investments regularly instead of rushing in March
Use ELSS mutual funds for high returns + 80C savings
Don’t ignore health insurance (80D) even under the new regime
Claim HRA and home loan deductions in the old regime
Use Vizzve’s Income Tax Estimator to compare outcomes in real-time
❓FAQs – Tax Regime and Savings
Q1. Can I switch regimes every year?
Yes, salaried individuals can choose between regimes every year. Business owners have limited switching.
Q2. Which regime is default in FY 2025–26?
The new regime is the default now. You must opt-out if you prefer the old one.
Q3. How do I decide the better regime for me?
Use Vizzve’s Regime Calculator—it instantly shows your net tax under both regimes.
Q4. Can I still invest under 80C in the new regime?
Yes, but you won’t get any deduction benefit in the new regime.
📌 Conclusion: Don’t Just File Taxes – Plan Them
The best regime depends on your income, lifestyle, and financial habits.
Whether you’re a minimalist investor or a seasoned tax planner, Vizzve Finance gives you the tools to make informed decisions and save more in FY 2025–26.
Published on 3rd july
Published: SMITA
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