The income tax slab old regime has four bands for a resident under 60: nil up to ₹2.5 lakh, 5% from ₹2.5 lakh to ₹5 lakh, 20% from ₹5 lakh to ₹10 lakh and 30% above ₹10 lakh. In return for these steeper rates you keep the right to claim 80C savings, health cover under 80D, house rent and housing loan interest.
The old regime is optional. You have to choose it, because the new regime applies by default. It suits people whose deductions are large, typically a rent payer with a home loan or heavy 80C savings. The rates below are for FY 2025-26 (AY 2026-27) and were not changed for tax year 2026-27.
Quick facts
Nil limit below 60
₹2,50,000Nil limit 60 to 79
₹3,00,000Nil limit 80 plus
₹5,00,000Rates
5%, 20%, 30%Rebate
Up to ₹12,500 if taxable income is up to ₹5 lakhStandard deduction
₹50,000Top surcharge
37% above ₹5 crore
Income tax slab old regime rates in India for FY 2025-26
| Taxable income | Under 60 | Aged 60 to 79 | Aged 80 or more |
|---|---|---|---|
| Up to ₹2,50,000 | 0% | 0% | 0% |
| ₹2,50,001 to ₹3,00,000 | 5% | 0% | 0% |
| ₹3,00,001 to ₹5,00,000 | 5% | 5% | 0% |
| ₹5,00,001 to ₹10,00,000 | 20% | 20% | 20% |
| Above ₹10,00,000 | 30% | 30% | 30% |
Tax on a full band is easy to remember. For someone under 60, the 5% band costs ₹12,500 and the 20% band costs ₹1,00,000. So tax on ₹10 lakh is ₹1,12,500 before cess. Above that, every extra rupee is taxed at 30%. Cess of 4% is added at the end.
Deductions that stay in the old regime
| Item | Limit |
|---|---|
| Standard deduction on salary or pension | ₹50,000 |
| 80C: PPF, EPF, life cover, ELSS, tuition fees, home loan principal | ₹1,50,000 |
| 80CCD(1B): own NPS contribution | ₹50,000 extra |
| 80D: health insurance | ₹25,000; ₹50,000 for a senior citizen |
| 24(b): housing loan interest on the home you live in | ₹2,00,000 |
| HRA exemption | Lowest of three limits |
| 80TTA savings interest (80TTB for seniors) | ₹10,000 (₹50,000) |
| Professional tax paid | Actual, up to ₹2,500 under state caps |
Each one cuts taxable income, so at the 30% rate a ₹1 lakh deduction saves ₹31,200 with cess. See the 80C guide and 80D guide for what qualifies.
Worked example: when the old regime wins
Anjali earns ₹15,00,000 in Bengaluru and pays rent. For FY 2025-26 she has: HRA exemption ₹3,00,000, 80C ₹1,50,000, 80D ₹50,000 (her own policy and her parents' policy), NPS under 80CCD(1B) ₹50,000, and the ₹50,000 standard deduction. Total: ₹6,00,000.
- Old regime taxable income: ₹15,00,000 minus ₹6,00,000 = ₹9,00,000.
- Tax: ₹12,500 on the 5% band plus 20% of ₹4,00,000 (₹80,000) = ₹92,500.
- With 4% cess: ₹96,200.
- New regime for comparison: ₹15,00,000 minus ₹75,000 = ₹14,25,000. Tax ₹60,000 plus 15% of ₹2,25,000 (₹33,750) = ₹93,750, with cess ₹97,500.
The old regime saves her only ₹1,300. Drop the NPS deduction and the new regime would come out ahead.
Run your own numbers in the old vs new calculator.
Income tax old regime vs new regime: the main differences
| Point | Old regime | New regime |
|---|---|---|
| Nil band | ₹2.5 lakh (higher for seniors) | ₹4 lakh for all ages |
| Zero tax up to | ₹5 lakh taxable | ₹12 lakh taxable |
| Top rate starts | Above ₹10 lakh | Above ₹24 lakh |
| Deductions | Most allowed | Very few allowed |
| Highest surcharge | 37% | 25% |
| Applies | Only if you opt in | By default |
How to choose the old regime
A salaried person informs the employer early in the year so that monthly TDS follows the old slabs, and then selects the old regime in the return. The choice in the return is what counts, even if the employer used the other regime. Make it in a return filed by the normal due date; a belated return falls back to the new regime.
If you have business or professional income, the rule is stricter. You file Form 10-IEA before the due date to leave the new regime, and you can switch back only once. Under the Income-tax Act, 2025, the default regime is in section 202 and the old regime remains the alternative for tax year 2026-27.
Common slip ups with income tax old regime slabs
| Slip up | Fix |
|---|---|
| Claiming deductions but forgetting to pick the old regime in the return | Select the old regime in the return, or the deductions are dropped |
| Filing after the due date and expecting old slabs | File by the due date when you want the old regime |
| Counting the ₹12,500 rebate at ₹5.2 lakh income | The rebate stops above ₹5 lakh, with no marginal relief in this regime |
| No proofs for 80C or rent | Keep receipts; the employer and the department can ask |
General information only, not tax advice. Slab rates and deductions can change, so your final word on your own return should come from a chartered accountant or the official e-filing portal.
Sources we checked
- Income-tax Act, 1961, section 115BAC
- Finance Act, 2025, First Schedule
- Income-tax Act, 1961, section 87A
- Income-tax Act, 1961, sections 80C and 80D
Frequently asked questions
What are the old regime tax slabs for FY 2025-26?
For a resident under 60: nil up to ₹2.5 lakh, 5% from ₹2.5 lakh to ₹5 lakh, 20% from ₹5 lakh to ₹10 lakh and 30% above ₹10 lakh. Cess of 4% is added.
Is the old income tax slab for AY 2025-26 different?
No. The old regime rates have stayed the same for several years, so AY 2025-26 (FY 2024-25) and AY 2026-27 (FY 2025-26) use the same bands.
Who should stay in the old regime?
Usually people with large deductions: rent with HRA, a home loan, full 80C and 80D, and NPS. The break even point differs for each income, so run both regimes on your own numbers before you decide.
Can I switch between old and new regimes every year?
Salaried and pension earners without business income can choose each year in the return. With business income, you can leave the new regime by filing Form 10-IEA, and come back to it only once.