New Delhi, June 25 -- The Union Budget 2025 significantly tilted the tax equation in favour of the new income tax regime. For salaried individuals earning Rs.12 lakh annually, the difference between the two regimes has become particularly stark.

Thanks to the higher Section 87A rebate and a Rs.75,000 standard deduction under the new regime, a salaried taxpayer earning Rs.12 lakh a year can end up paying zero income tax, while the old regime still requires substantial investments and deductions to achieve comparable savings.

Here's a closer look at how the numbers stack up.

A salaried employee earning Rs.12 lakh annually is eligible for the Rs.75,000 standard deduction under the new regime. The Rs.75,000 standard deduction reduces taxab...