New vs Old Tax Regime: Which Saves More After Budget 2026?

• Budget 2026 brought no major changes to income tax slabs or rates, maintaining stability but offering no new relief.
• Taxpayers still choose between the new system (lower rates, fewer exemptions) and the old system (higher rates, more deductions).
• New tax system: Income up to 4 lakh rupees is tax-free; 5% for 4-8 lakh, 10% for 8-12 lakh, up to 30% for income above 24 lakh.
• Zero tax for resident individuals with income up to 12 lakh rupees in the new system, extending to 12.75 lakh for salaried due to standard deduction.
• Old tax system remains beneficial for those with significant deductions (80C, 80D, HRA, LTA, home loan interest), with tax-free income up to 2.5 lakh.

Why It Matters: Budget 2026 maintains both tax regimes; new is better for lower incomes, old for those with high deductions.