Decade of Indian Tax Reforms
Over the last decade, India's personal income tax system has transitioned from a single regime containing high basic deductions to a simplified dual-regime system. The landmark introduction of the New Tax Regime in FY 2020-21, its expansion as the default tax system in FY 2023-24, and subsequent sweetening in Budget 2025 have reshaped tax liability for millions of salaried workers.
⚖️ Year-on-Year Tax Savings Comparator
Compare your computed income tax side-by-side across any two financial years to calculate exactly how much money you save under the revised budget rules.
Interactive Budget Timeline
Click on any financial year block below to expand and view the historical tax slabs, cesses, and rebate details of that budget.
FY 2026-27 & FY 2026-27 Current Rules
▼Highlights: Exemption threshold under the New regime raised to ₹4 Lakhs. Section 87A rebate raised to ₹60,000 for taxable income up to ₹12 Lakhs (effectively making Gross salaries under ₹12.75L tax-free). Slabs restructured into 6 tiers.
| Slabs (New Regime) | Rate | Slabs (Old Regime) | Rate |
|---|---|---|---|
| Up to ₹4,00,000 | 0% | Up to ₹2,50,000 | 0% |
| ₹4,00,001 - ₹8,00,000 | 5% | ₹2,50,001 - ₹5,00,000 | 5% |
| ₹8,00,001 - ₹12,00,000 | 10% | ₹5,00,001 - ₹10,00,000 | 20% |
| ₹12,00,001 - ₹16,00,000 | 15% | Above ₹10,00,000 | 30% |
| ₹16,00,001 - ₹20,00,000 | 20% | - | - |
| ₹20,00,001 - ₹24,00,000 | 25% | - | - |
| Above ₹24,00,000 | 30% | - | - |
• Standard Deduction: ₹75,000 (New) | ₹50,000 (Old)
• Cess: 4% Health & Education Cess
• 87A Rebate: Up to ₹60,000 (New) | ₹12,500 (Old)
FY 2024-25
▼Highlights: Standard deduction under the New tax regime raised from ₹50,000 to ₹75,000. Slab limits revised slightly (0-3L, 3-7L, 7-10L, 10-12L, 12-15L, >15L). Section 87A rebate capped up to ₹7,00,000 taxable income.
| Slabs (New Regime) | Rate | Slabs (Old Regime) | Rate |
|---|---|---|---|
| Up to ₹3,00,000 | 0% | Up to ₹2,50,000 | 0% |
| ₹3,00,001 - ₹7,00,000 | 5% | ₹2,50,001 - ₹5,00,000 | 5% |
| ₹7,00,001 - ₹10,00,000 | 10% | ₹5,00,001 - ₹10,00,000 | 20% |
| ₹10,00,001 - ₹12,00,000 | 15% | Above ₹10,00,000 | 30% |
| ₹12,00,001 - ₹15,00,000 | 20% | - | - |
| Above ₹15,00,000 | 30% | - | - |
• Standard Deduction: ₹75,000 (New) | ₹50,000 (Old)
• Cess: 4% Health & Education Cess
• 87A Rebate: Up to ₹25,000 (New) | ₹12,500 (Old)
FY 2023-24 New default Regime
▼Highlights: New Tax Regime made default. Exemption limit pushed to ₹3 Lakhs under the New Regime. Standard deduction of ₹50,000 extended to New Regime. Section 87A rebate limit pushed to ₹7 Lakhs taxable income.
| Slabs (New Regime) | Rate | Slabs (Old Regime) | Rate |
|---|---|---|---|
| Up to ₹3,00,000 | 0% | Up to ₹2,50,000 | 0% |
| ₹3,00,001 - ₹6,00,000 | 5% | ₹2,50,001 - ₹5,00,000 | 5% |
| ₹6,00,001 - ₹9,00,000 | 10% | ₹5,00,001 - ₹10,00,000 | 20% |
| ₹9,00,001 - ₹12,00,000 | 15% | Above ₹10,00,000 | 30% |
| ₹12,00,001 - ₹15,00,000 | 20% | - | - |
| Above ₹15,00,000 | 30% | - | - |
• Standard Deduction: ₹50,000 (New) | ₹50,000 (Old)
• Cess: 4% Health & Education Cess
• 87A Rebate: Up to ₹25,000 (New) | ₹12,500 (Old)
FY 2020-21 to FY 2022-23 New regime introduced
▼Highlights: The New Tax Regime was introduced as an optional scheme under Section 115BAC. No Standard Deduction was allowed under the New Regime. Exemption was ₹2.5L. Old Regime maintained ₹50,000 Standard Deduction.
| Slabs (New Regime) | Rate | Slabs (Old Regime) | Rate |
|---|---|---|---|
| Up to ₹2,50,000 | 0% | Up to ₹2,50,000 | 0% |
| ₹2,50,001 - ₹5,00,000 | 5% | ₹2,50,001 - ₹5,00,000 | 5% |
| ₹5,00,001 - ₹7,50,000 | 10% | ₹5,00,001 - ₹10,00,000 | 20% |
| ₹7,50,001 - ₹10,00,000 | 15% | Above ₹10,00,000 | 30% |
| ₹10,00,001 - ₹12,50,000 | 20% | - | - |
| ₹12,50,001 - ₹15,00,000 | 25% | - | - |
| Above ₹15,00,000 | 30% | - | - |
• Standard Deduction: ₹0 (New) | ₹50,000 (Old)
• Cess: 4% Health & Education Cess
• 87A Rebate: Up to ₹12,500 (New) | ₹12,500 (Old)
FY 2019-20
▼Highlights: Section 87A rebate raised significantly from ₹2,500 to ₹12,500 (making taxable incomes up to ₹5L tax-free). Standard deduction raised from ₹40,000 to ₹50,000.
| Taxable Income Bracket (₹) | Tax Rate |
|---|---|
| Up to ₹2,50,000 | 0% |
| ₹2,50,001 - ₹5,00,000 | 5% |
| ₹5,00,001 - ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
• Standard Deduction: ₹50,000
• Cess: 4% Health & Education Cess
• 87A Rebate: Up to ₹12,500
FY 2018-19
▼Highlights: Standard Deduction of ₹40,000 reintroduced for salaried workers, replacing the transport allowance (₹19.2k) and medical reimbursement (₹15k). Education cess raised from 3% to 4% (rebranded as Health & Education Cess).
| Taxable Income Bracket (₹) | Tax Rate |
|---|---|
| Up to ₹2,50,000 | 0% |
| ₹2,50,001 - ₹5,00,000 | 5% |
| ₹5,00,001 - ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
• Standard Deduction: ₹40,000
• Cess: 4% Health & Education Cess
• 87A Rebate: Up to ₹2,500 (income up to ₹3.5L)
FY 2017-18
▼Highlights: Tax rate for the lowest taxable slab (₹2.5L to ₹5L) halved from 10% to 5%. Section 87A rebate reduced from ₹5,000 to ₹2,500, and its eligibility cap reduced to ₹3,50,000 income.
| Taxable Income Bracket (₹) | Tax Rate |
|---|---|
| Up to ₹2,50,000 | 0% |
| ₹2,50,001 - ₹5,00,000 | 5% (formerly 10%) |
| ₹5,00,001 - ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
• Standard Deduction: ₹0
• Cess: 3% Education Cess
• 87A Rebate: Up to ₹2,500 (income up to ₹3.5L)
FY 2014-15 to FY 2016-17
▼Highlights: Basic exemption limit was set at ₹2.5 Lakhs. The lowest tax tier carried a 10% tax rate. Section 87A rebate was ₹2,000 (FY 14-16) and raised to ₹5,000 in FY 2016-17 for income up to ₹5L.
| Taxable Income Bracket (₹) | Tax Rate |
|---|---|
| Up to ₹2,50,000 | 0% |
| ₹2,50,001 - ₹5,00,000 | 10% |
| ₹5,00,001 - ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
• Standard Deduction: ₹0
• Cess: 3% Education Cess
• 87A Rebate: ₹2,000 (FY 14-16) | ₹5,000 (FY 16-17)
Related Tools & Guides: Track your current salary tax slabs under both regimes with the Old vs New Tax Regime Calculator, use our main CTC Calculator, or read our detailed historical comparison guide Old vs New Tax Regime: Slab Comparison.
Disclaimer: CTC Calculator provides calculations based on standard Indian payroll and tax slabs (Budget FY 2026-27) for educational purposes. Actual structures and deductions may vary based on company policy. Please consult a Chartered Accountant or tax professional for financial decisions.
Calculation Methodology: Calculations run client-side in your browser using pure JavaScript. No personal salary data is transmitted to our servers or stored. EPF calculations default to 12% of basic salary, gratuity is projected at 4.81% of basic, and Professional Tax is based on selected state boundaries.