Question 1

Which tax regime is better for salaried employees in 2025-26?

Accepted Answer

For FY 2025-26, the new tax regime is better if your deductions (80C + HRA + home loan interest) are less than ₹3.75 lakh. If your deductions exceed ₹3.75 lakh, the old regime often saves more. Use Finkoin's calculator to find your exact saving.

Question 2

What is the standard deduction in new tax regime 2025-26?

Accepted Answer

The standard deduction in the new tax regime for FY 2025-26 is ₹75,000 for salaried employees. This was increased from ₹50,000 in Budget 2024.

Question 3

Can I switch between old and new tax regime every year?

Accepted Answer

Salaried employees can switch between old and new tax regime every financial year when filing ITR. Business owners can switch only once. Inform your employer at the start of the financial year.

Question 4

What deductions are available in old tax regime?

Accepted Answer

Old regime allows: Section 80C (₹1.5 lakh for PPF, ELSS, LIC), Section 80D (₹25,000 health insurance), HRA exemption, Section 24B (₹2 lakh home loan interest), NPS 80CCD(1B) (₹50,000 extra), and more.

Question 5

Is income up to 12 lakh tax free in 2026?

Accepted Answer

Under the new tax regime, if your taxable income is up to ₹12 lakh after the ₹75,000 standard deduction, Section 87A rebate can bring tax to zero (subject to current Budget rules).