Private Limited vs LLP: which should you choose?
Both limit your liability, but they differ on funding, compliance and cost. Here is how to decide.
Blog featured image1200 × 630 px
The new tax regime is now the default. For FY 2025-26, resident individuals with taxable income up to ₹12 lakh pay no tax under it, thanks to the rebate under section 87A. Salaried employees also get a ₹75,000 standard deduction, which takes the tax-free limit to ₹12.75 lakh of salary.
New regime slabs for FY 2025-26
| Income | Rate |
|---|---|
| Up to ₹4 lakh | Nil |
| ₹4 – 8 lakh | 5% |
| ₹8 – 12 lakh | 10% |
| ₹12 – 16 lakh | 15% |
| ₹16 – 20 lakh | 20% |
| ₹20 – 24 lakh | 25% |
| Above ₹24 lakh | 30% |
When the old regime can still win
- You pay high rent and claim a large HRA exemption
- You claim home loan interest on a self-occupied house
- You use the full ₹1.5 lakh under 80C plus 80D and NPS deductions
The quick way to decide
Enter your numbers in our income tax calculator to compare both regimes side by side. If the difference is small, the new regime is usually simpler, since you don't need to collect investment proofs.