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Understand the income tax slab for FY 2025-26, compare old and new regimes, and see how Bajaj Finserv Home Loans can support your financial goals.
Every April, millions of salaried Indians ask the same question: which tax regime saves more money this year? With the Union Budget introducing wider slabs under the new regime, the income tax slab for FY 2025-26 looks different from previous years. Many taxpayers are unsure which option works better for them. That confusion is understandable, and this article addresses it clearly.
Your tax choice affects how much money stays in your account each month. That extra amount, when planned well, can support a significant goal: buying a home.
Why your tax choice matters this year
The regime you choose directly shapes your take-home income. A lower tax outgo means more money available for savings, investments, and loan repayments. For those considering home ownership, this matters more than most people realise.
When you plan your taxes well, you create room in your monthly budget. That room can support an equated monthly instalment (EMI) on a home loan, making ownership more practical than it may seem.
How tax planning helps you build assets
Tax savings are not just about reducing a number on a form. They free up real money that can go towards long-term goals. Buying a home is one of the most effective ways to build lasting financial security.
A well-chosen tax regime, paired with a home loan, can put you on a steady path towards ownership. Bajaj Finserv Home Loan offers a structure that fits this kind of long-term planning with ease.
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Income tax slab for FY 2025-26 under the old regime
The old tax regime uses higher slab rates but allows a wide range of deductions. Taxpayers who invest in instruments like PPF, ELSS, or insurance, or who pay home loan interest, often find this regime more beneficial.
| Income range | Tax rate |
| Up to Rs. 2.5 lakh | Nil |
| Rs. 2.5 lakh – Rs. 5 lakh | 5% |
| Rs. 5 lakh – Rs. 10 lakh | 20% |
| Above Rs. 10 lakh | 30% |
Key deductions you can claim
- Section 80C (up to Rs. 1.5 lakh): This covers investments in PPF, EPF, ELSS mutual funds, life insurance premiums, and home loan principal repayment. It is one of the most widely used deductions available under the old regime.
- Health insurance premium (Section 80D): You can claim deductions on premiums paid for yourself and your family. This reduces your taxable income while ensuring medical cover.
- Home loan interest (Section 24B): You can claim up to Rs. 2 lakh per year on interest paid on a home loan for a self-occupied property. This is a strong reason for home buyers to consider the old regime.
The home loan interest deduction under Section 24B makes the old regime particularly attractive for those repaying a housing loan. A Bajaj Finserv Home Loan, with interest rates starting at 7.25%* p.a., can generate meaningful deductions over time.
Income tax slab for FY 2025-26 under the new regime
The new tax regime (under Section 115BAC) offers lower slab rates across wider income bands. It removes most deductions but simplifies the overall tax calculation considerably.
| Income range | Tax rate |
| Up to Rs. 4 lakh | Nil |
| Rs. 4 lakh – Rs. 8 lakh | 5% |
| Rs. 8 lakh – Rs. 12 lakh | 10% |
| Rs. 12 lakh – Rs. 16 lakh | 15% |
| Rs. 16 lakh – Rs. 20 lakh | 20% |
| Rs. 20 lakh – Rs. 24 lakh | 25% |
| Above Rs. 24 lakh | 30% |
Rebate and tax-free income
Under the new regime, a full rebate under Section 87A applies if your total taxable income does not exceed Rs. 7 lakh. This means your effective tax liability becomes nil, even though your income falls above the basic exemption limit.
For many salaried individuals earning up to Rs. 12 lakh, the standard deduction of Rs. 50,000 combined with the rebate can bring the effective tax to zero or close to it. This makes the new regime a practical option for those with fewer eligible deductions.
Old vs new regime: which one should you choose
Choosing between the two regimes depends on your income level, investment habits, and deduction eligibility. There is no single correct answer; it varies from person to person.
| Feature | Old regime | New regime |
| Tax rates | Higher | Lower |
| Deductions allowed | Many | Limited |
| Simplicity | Moderate | High |
| Best for | High deduction savers | Low deduction earners |
Example for Rs. 12 lakh income
For a salaried individual with a taxable income of Rs. 12 lakh and limited deductions, the new regime results in a tax of approximately Rs. 60,000 before cess. Under the old regime, the same income attracts around Rs. 1,72,500 before cess.
However, if that individual claims Rs. 1.5 lakh under Section 80C and Rs. 2 lakh under Section 24B (home loan interest), the taxable income under the old regime drops to Rs. 8.5 lakh. The resulting tax can be lower than the new regime. This is where a home loan genuinely changes the tax equation.
How to save tax and still build wealth
Many taxpayers worry that the new regime leaves little room for savings. That concern is valid, but the new regime does not eliminate all tax-saving options. Knowing how to save tax in new tax regime is about making smarter choices with the deductions that remain available.
Smart ways to save even without deductions
- Choose the right tax regime: Before filing, calculate your tax under both regimes. The regime that results in lower tax is the right starting point for your financial year.
- Plan investments wisely: While 80C deductions are not available in the new regime, you can still build wealth through market-linked instruments, fixed deposits, and real estate. These contribute to financial growth even without a direct tax break.
- Use the standard deduction: Salaried employees can claim a standard deduction of Rs. 50,000 under the new regime. This directly reduces taxable income and is one of the few deductions still available.
Role of home ownership in tax planning
Home ownership adds a layer of financial strength that few other assets can match. Under the old regime, a home loan generates deductions on both principal and interest. Even under the new regime, property ownership builds equity and creates a tangible asset.
Bajaj Finserv Home Loan supports this goal with flexible terms, a long repayment tenure, and competitive interest rates. It fits into a broader financial plan rather than standing apart from it.
Why the Bajaj Finserv Home Loan fits into your tax planning
A home loan from Bajaj Finserv can serve as both a financial asset and a tax instrument, depending on the regime you choose.
Key features and benefits
- Loan up to Rs. 15 crore*: Bajaj Finserv offers a sizeable loan amount that can cover a wide range of property types and locations across India.
- Interest rates starting at 7.25%* p.a.: Competitive rates mean lower EMIs, which makes monthly repayment more manageable without straining your budget.
- EMI from Rs. 671 per lakh*: This figure gives you a clear sense of your repayment obligation and helps with monthly financial planning.
- Tenure up to 32 years: A longer tenure reduces your monthly EMI, which can make home ownership accessible even at an early stage of your career.
- No foreclosure charges for floating rate borrowers: Individual borrowers on a floating rate can repay the full loan or make part-prepayments without paying any additional fee.
- Approval in 48 hours*: A fast approval process means you can plan your property purchase with greater certainty and fewer delays.
- 5,000+ approved projects: With a large list of pre-approved properties, the loan process tends to be quicker and involves fewer verification steps.
How to apply for Bajaj Finserv Home Loan
The process is straightforward and can be completed online without visiting a branch:
- Click on the ‘APPLY’ button on this page to begin your application.
- Enter your full name, mobile number, and employment type in the required fields.
- Select the type of loan you wish to apply for – fresh home loan, balance transfer, or top-up.
- Generate and submit your OTP to verify your mobile number securely.
- After OTP verification, enter details such as your monthly income, required loan amount, and whether you have identified a property.
- Enter your date of birth, PAN number, and any additional details relevant to your occupation type.
- Click the ‘SUBMIT’ button to complete your application.
Once submitted, a Bajaj Finserv representative will reach out and guide you through the next steps.
Before you apply, ensure you meet the eligibility criteria and have the required documents ready and up-to-date:
| Criteria | Requirement |
| Nationality | Indian citizen residing in India |
| CIBIL Score | 725 or higher |
| Occupation | Salaried, professional, or self-employed |
| Age | 23 – 67 years (salaried)
23 – 70 years (self-employed) |
| Documentation | KYC documents (Aadhaar, PAN, or passport)
Income proof (salary slips or P&L statements) Bank statements (last 6 months) Business proof (self-employed) |
The income tax slab for FY 2025-26 has given taxpayers more options and more clarity. Whether you choose the old regime for its deductions or the new regime for its lower rates, the key is to make an informed decision based on your income and investment profile.
Knowing how to save tax in the new tax regime, through the standard deduction, wise investment choices, and long-term asset creation, can help you retain more of what you earn. Combining that with home ownership through a Bajaj Finserv Home Loan adds both a financial asset and, under the old regime, a meaningful set of tax deductions to your plan. Visit the official Bajaj Finserv website today to apply.
