Income Tax Slabs and Rates for FY 2025-26 (AY 2026-27)

Q: What is the previous year and assessment year?

In income-tax law, the "Previous Year" is the period from April 1st to March 31st when income is earned. The following year is the "Assessment Year," where this income is evaluated for tax purposes. For instance, FY 2023-24 is assessed in AY 2024-25.

Q: What is the 80C limit for FY 2024 25?

The maximum limit for claiming tax benefits under Section 80C remains at Rs. 1.5 lakh for FY 2024-25, the same as the current fiscal year 2023-24. This limit allows individuals to reduce their taxable income by investing in specified instruments like EPF, PPF, ELSS, NSC, and paying life insurance premiums.

Q: Is 7 lakh income tax free?

In the old regime, individuals are exempt from paying tax if their taxable income (after deductions) is less than Rs. 5 lakh. Conversely, in the New Regime, the entire income remains tax-free if the taxable income falls below Rs. 7 lakh.

Q: Can I claim 80C deductions and opt for a new income tax slab regime?

No, individuals cannot claim 80C deductions and opt for the new income tax slab regime simultaneously. Under the new tax regime, most deductions under Section 80C are not applicable. Taxpayers opting for the new regime must forgo these deductions, impacting their taxable income and overall tax liability.

Q: What is the meaning of rebate under section 87A under the IT Act?

Section 87A rebate aids taxpayers in diminishing their income tax burden. This rebate is applicable if your total income, post Chapter VIA deductions, does not surpass Rs 5 lakh in FY 2023-24. Utilizing this rebate results in a nullification of your income tax liability.

Q: How to calculate surcharge on income tax?

Begin by computing the income tax, equivalent to 30% of the taxable income, totaling Rs 18 lakh. Then, apply the surcharge rate of 10%, resulting in a surcharge amounting to 10% of Rs 19 lakh, totaling Rs 1.9 lakh.

Q: What is the basic exemption limit for FY 24 25?

The basic exemption limit under the new tax regime for FY 2024-25 has been set at Rs. 3 lakh (this limit is Rs. 2.5 lakh in the old regime). This implies that individuals do not have to pay tax on income up to Rs. 3 lakh. After the latest Union Budget 2024 changes, the new tax regime features five income tax slabs with rates ranging from 5% to 30%.

Q: What is the rebate under section 87A for FY 2024 25?

The rebate under Section 87A for FY 2024-25 is Rs. 25,000 for the new tax regime, applicable for taxable income up to Rs. 7 lakh. This means that individuals with taxable income within this range will not pay any income tax after claiming the rebate.

Q: Which is better old regime or new regime?

The choice between the old and new regime after the Union Budget 2024 changes depends on your financial situation and tax preferences. The new regime, with its lower tax rates and simplicity, can be advantageous for individuals with fewer deductions and exemptions. For FY 2024-25, the new regime offers reduced rates and makes it an attractive option when you do not have deductions to claim. On the other hand, the old regime allows for deductions like those under section 80C (Rs. 1,50,000), section 80D (Rs. 25,000/ Rs. 50,000), and more. These deductions can benefit those with significant eligible expenses. Hence, if your deductions are substantial, the old regime could result in lower taxes despite its complexity.

Q: Is 80C applicable in the new tax regime?

No, the new tax regime no longer permits deductions under Chapter VI-A, which encompass widely used deductions such as 80C (pertaining to investments), 80D (for medical insurance premiums), and 80E (relating to education loan interest).

The new income tax slabs and rates under the new regime for the FY 2025-26 (AY 2026-27) are as follows: Rs. 0 to Rs. 4 lakh – Nil, Rs. 4 lakh to Rs. 8 lakh – 5%, Rs. 8 lakh to Rs. 12 lakh – 10%, Rs. 12 lakh to Rs. 16 lakh – 15%, Rs. 16 lakh to Rs. 20 lakh – 20%, Rs. 20 lakh to Rs. 24 lakh – 25%, and income above Rs. 24 lakh will be taxed at 30%.

3 mins read

02-February-2026

The finance minister Nirmala Sitharaman has introduced significant changes to the income tax slabs under the new tax regime in the Union Budget 2026. These new slabs will come into effect from April 1, 2026, for the financial year 2026-27. The restructuring of tax slabs aims to simplify the tax system and offer relief to taxpayers across different income brackets.

For the financial year 2026–27, Finance Minister Nirmala Sitharaman did not announce any changes to the existing income tax slabs under the revised tax regime. Income between Rs. 4 lakh and Rs. 8 lakh will be taxed at 5%, while income from Rs. 8 lakh to Rs. 12 lakh will be taxed at 10%. For earnings between Rs. 12 lakh and Rs. 16 lakh, the applicable tax rate is 15%. Income falling in the range of Rs. 16 lakh to Rs. 20 lakh will attract a 20% tax. Those earning between Rs. 20 lakh and Rs. 24 lakh will be taxed at 25%, and any income above Rs. 24 lakh will be subject to a 30% tax rate.

The Union Budget 2026–27 was structured around sustaining India’s growth momentum amid global uncertainties, while continuing structural reforms and encouraging long-term investment. A key focus remained infrastructure-led development, with public capital expenditure raised to a record Rs. 12.2 lakh crore, reinforcing the government’s commitment to connectivity, urban development, employment generation, and timely execution of large-scale projects.

Manufacturing and technological self-reliance formed another major pillar of the Budget. The government strengthened its semiconductor manufacturing programme and related ecosystem support to enhance domestic production, research, and supply chain resilience. Measures were also outlined to improve access to critical minerals, supporting advanced manufacturing needs across electronics, defence, and clean-energy sectors.

Transport and logistics infrastructure received renewed emphasis through proposals aimed at improving rail connectivity, freight efficiency, inland waterways, shipbuilding, and container manufacturing. These initiatives are intended to lower logistics costs, support sustainable mobility, and improve supply-chain competitiveness.

On the taxation front, the government announced the planned implementation of the Income Tax Act, 2025 from April 1, 2026, with the objective of simplifying compliance and reducing legal complexity, while retaining existing tax rates and slab structures. Additional steps were introduced to ease compliance through rationalised timelines and procedural simplifications.

The Budget also maintained targeted support for defence, healthcare, MSMEs, education, women-centric initiatives, and innovation. Overall, the 2026–27 Budget balanced continuity with reform, preserving fiscal stability while strengthening infrastructure, manufacturing depth, and India’s position in global technology and supply chains.

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New income tax slab rates for FY 2025–26 (AY 2026–27) after Budget 2026

The Union Budget 2026 has retained the income tax slab structure introduced in Budget 2025, reinforcing the government’s focus on tax simplification and relief for middle-income taxpayers. Under the revised tax regime, income up to Rs. 4 lakh remains exempt from tax. The existing slabs continue to lower the overall tax burden and encourage wider adoption of the simplified tax regime, which remains the default option for taxpayers.

New Income Tax Slabs for FY 2025-26 (AY 2026-27)	New Income Tax Rate for FY 2025-26 (AY 2026-27)
Up to Rs. 4,00,000	NIL
From Rs. 4,00,001 to Rs. 8,00,000	5%
From Rs. 8,00,001 to Rs. 12,00,000	10%
From Rs. 12,00,001 to Rs. 16,00,000	15%
From Rs. 16,00,001 to Rs. 20,00,000	20%
From Rs. 20,00,001 to Rs. 24,00,000	25%
Above Rs. 24,00,001	30%

The enhanced tax rebate under Section 87A, which was increased in Budget 2025 from Rs. 25,000 to Rs. 60,000, continues in Budget 2026. As a result, resident individuals with taxable income up to Rs. 12 lakh pay zero income tax under the new tax regime. In addition, salaried taxpayers can claim a standard deduction of Rs. 75,000, effectively making income up to Rs. 12.75 lakh tax-free under the revised structure.

Further, the tax deduction limit for senior citizens has been doubled from Rs. 50,000 to Rs. 1 lakh, offering meaningful relief to elderly taxpayers and supporting post-retirement financial security.

According to the Finance Minister, these tax measures together result in the government foregoing nearly Rs. 1 lakh crore in direct tax revenue and around Rs. 2,600 crore in indirect taxes, reinforcing Budget 2026’s focus on increasing disposable income while maintaining fiscal stability.

New tax regime income tax slab rates for FY 2026-27 (AY 2027-28)

Under the new tax regime, individuals with income up to Rs. 12 lakh continue to enjoy complete tax exemption, making this structure highly beneficial for middle-income taxpayers. For salaried individuals, the tax-free limit extends further to Rs. 12.75 lakh, after factoring in the Rs. 75,000 standard deduction. These measures are aimed at boosting disposable income and simplifying tax compliance.

Once an individual’s taxable income exceeds Rs. 12 lakh, the following tax rates apply:

Taxable Income (Rs.)	Tax Rate (%)
0 - 12,00,000	Nil
12,00,001 - 16,00,000	15%
16,00,001 - 20,00,000	20%
20,00,001 - 24,00,000	25%
Above 24,00,000	30%

This marks a significant departure from the earlier tax regime, where income above Rs. 15 lakh was taxed at a flat 30% rate. Under the revised slabs, individuals earning between Rs. 12 lakh and Rs. 24 lakh enjoy meaningful tax savings, making the new regime more appealing for middle- and upper-middle-income taxpayers. The updated structure also supports the government’s objective of simplifying taxation, lowering compliance burden, and extending financial relief to a wider taxpayer base.

Tax Savings Breakdown Under the New Regime

Existing Tax Savings

Income Bracket	Tax Savings
Rs. 3 lakh to Rs. 7 lakh	Rs. 20,000
Rs. 7 lakh to Rs. 10 lakh	Rs. 30,000
Rs. 10 lakh to Rs. 12 lakh	Rs. 30,000
Rs. 12 lakh to Rs. 15 lakh	Rs. 60,000
Total Tax	Rs. 1,40,000

Proposed Tax Savings (Budget 2026)

Income Bracket	Tax Savings
Rs. 4 lakh to Rs. 8 lakh	Rs. 20,000
Rs. 8 lakh to Rs. 12 lakh	Rs. 40,000
Rs. 12 lakh to Rs. 15 lakh	Rs. 45,000
Total Tax	Rs. 1,05,000

Net Benefit: Individuals earning Rs. 15 lakh annually enjoy a net tax reduction of Rs. 35,000, even before accounting for the Section 87A rebate.

Income tax changes effective from 1st April 2026

The Union Budget 2026 retained and strengthened the reforms introduced in Budget 2025, with a continued focus on simplifying tax compliance, improving transparency, and providing relief to taxpayers. Effective from 1st April 2026 (FY 2026–27), these measures benefit individuals, businesses, and investors by lowering tax liability, easing compliance, and expanding exemptions. Below is a consolidated overview:

1. Retention of the new tax regime

Income up to Rs. 12 lakh remains tax-free under the new tax regime.
For salaried individuals, the effective tax-free limit increases to Rs. 12.75 lakh after the Rs. 75,000 standard deduction.

2. Section 87A rebate

The enhanced rebate continues at Rs. 60,000, ensuring zero tax liability for resident individuals with taxable income up to Rs. 12 lakh.

3. Income tax slabs under the new regime

Taxable income (Rs.)	Tax rate
0 – 4,00,000	Nil
4,00,001 – 8,00,000	5%
8,00,001 – 12,00,000	10%
12,00,001 – 16,00,000	15%
16,00,001 – 20,00,000	20%
20,00,001 – 24,00,000	25%
Above 24,00,000	30%

4. Higher deduction for senior citizens

The deduction limit has been increased from Rs. 50,000 to Rs. 1 lakh, offering additional relief to elderly taxpayers.

5. Standard deduction for salaried individuals

The standard deduction continues at Rs. 75,000, further reducing taxable income.

6. Simplification of compliance

Filing processes, return timelines, and TDS/TCS provisions are streamlined under the Income Tax Act, 2025, improving ease of compliance.

7. Exemption for interest income

Interest income exemptions under Section 80TTA and 80TTB continue, with limits of Rs. 50,000 for individuals and up to Rs. 1 lakh for senior citizens.

8. Continued investment deductions

Deductions under Section 80C, 80D, and other eligible provisions remain available, allowing taxpayers to reduce taxable income.

9. Impact on middle- and upper-middle-income earners

Individuals earning between Rs. 12 lakh and Rs. 24 lakh benefit from lower tax liability compared to the earlier regime, improving disposable income.

10. Foregone revenue

The government estimates a revenue foregone of nearly Rs. 1 lakh crore in direct taxes and around Rs. 2,600 crore in indirect taxes due to these measures.

11. Option to choose the old regime

Taxpayers may still opt for the old tax regime if it is more beneficial, ensuring flexibility.

12. Relief for senior citizens and retirees

Higher deductions and continued interest exemptions support post-retirement financial security.

13. Incentives for savings and growth

Tax benefits continue for long-term savings instruments, retirement plans, and infrastructure-linked investments, encouraging sustained capital formation.

Top 10 key highlights of Budget 2026–27

The Income Tax Act, 2025 is proposed to come into force from 1 April 2026, aiming to simplify tax laws and improve compliance.
Certain TDS and TCS provisions were rationalised to ease compliance, particularly for individuals and businesses.
Public capital expenditure was raised to a record Rs. 12.2 lakh crore for FY 2026–27, reinforcing infrastructure-led growth.
The Budget reiterated the government’s focus on expanding rail connectivity, including upgrades and future high-speed rail development.
Continued support was announced for semiconductor manufacturing and electronics ecosystems to strengthen domestic capabilities.
MSMEs and manufacturing sectors received targeted credit, infrastructure, and policy support to boost competitiveness and job creation.
Investments were announced in education, skilling, and women-centric initiatives, including hostels and skill development programmes.
Agriculture and rural development saw increased allocation for irrigation, storage, rural assets, and productivity enhancement.
Defence expenditure was increased with a strong emphasis on indigenisation and advanced manufacturing.
The Budget highlighted critical minerals and technology supply chains to support clean energy, electronics, and strategic sectors.

Budget 2026 highlights: Key announcements and major changes

Sector	Announcement	Details / comments
Manufacturing & industry	India semiconductor mission 2.0 and strategic sector push	New phase of the semiconductor mission announced; expanded support for electronics components manufacturing; policy and enabling support for biopharma, chemicals, textiles, rare earth materials and container manufacturing to reduce import dependence and strengthen domestic capabilities.
MSMEs & small business	Champion MSMEs and growth funds	Rs. 10,000 crore SME Growth Fund announced along with a top-up to the Self-Reliant India Fund; measures to improve access to financing, liquidity support and compliance facilitation through TReDS and skilling networks.
Infrastructure & urban development	Record capex and connectivity focus	Public capital expenditure increased to around Rs. 12.2 lakh crore; identification of high-speed rail corridors, expansion of waterways and continued focus on infrastructure-led growth; proposal to explore risk-sharing mechanisms to encourage private participation.
Technology & IT services	Simplified framework for IT and digital services	Measures aimed at simplifying classification and compliance for IT and IT-enabled services, including harmonisation of tax and regulatory treatment to support sector growth.
Healthcare & education	Biopharma SHAKTI and skills initiatives	Launch of Biopharma SHAKTI to strengthen research and manufacturing ecosystems; expansion of healthcare workforce and allied health professionals; support for education-to-employment initiatives including design and AVGC skilling infrastructure.
Financial services & markets	Capital market and financial sector reforms	Rationalisation of taxation related to derivatives and clarification of share buyback taxation; measures to encourage municipal bonds and deepen corporate bond markets.
Transport & logistics	Freight corridors and multimodal logistics	Continued development of dedicated freight corridors, promotion of coastal shipping and expansion of inland waterways to improve logistics efficiency and reduce costs.
Real estate & housing	Urban financing and asset monetisation	Focus on urban infrastructure financing and asset monetisation through CPSEs using market-linked instruments; indirect support to housing and construction through infrastructure-led demand.
Textiles & apparel	Integrated textile development	Continued support for mega textile parks, fibre and value-chain development, skilling initiatives and support for handloom and khadi to enhance global competitiveness.
Tourism & culture	Destination-based tourism development	Support for destination-focused tourism, hospitality skilling and digital knowledge platforms to promote employment generation and regional development.
Sports and orange economy	Khelo India and creative sector support	Continued focus on sports talent development and infrastructure under Khelo India; support for animation, visual effects, gaming and comics through skilling and creative labs.
Agriculture & rural economy	Technology-enabled agriculture and rural support	Increased focus on technology and data-driven tools in agriculture, along with continued support for rural employment schemes and targeted commodity and rural services.
Defence & aerospace	Customs duty relief on critical inputs	Customs duty exemptions on selected defence aircraft parts and civilian aircraft components to strengthen domestic manufacturing, maintenance, repair and overhaul ecosystems.

What is the proposed change in STT rules?

The Union Budget 2026 proposes a revision in Securities Transaction Tax (STT) applicable to equity derivatives, aimed at moderating excessive speculative activity in the futures and options segment.

Key proposed changes include:

STT on equity futures is proposed to be increased from 0.02 percent to 0.05 percent of the transaction value.
STT on equity options is proposed to be increased, including:
- Higher STT on the option premium, and
- Higher STT when options are exercised, with the effective rate rising to around 0.15 percent.

Intent of the change:

To curb high-frequency speculative trading in derivatives.
To improve tax parity and stability in capital markets.
To increase revenue without impacting long-term investors, as STT on cash equity delivery trades remains unchanged.

Multiple TCS rates removed under Budget 2026

Under the Union Budget 2026, the government has rationalised the Tax Collected at Source (TCS) framework by removing multiple rate structures and moving towards simpler, uniform rates across select transactions. The objective is to reduce compliance complexity and ease cash-flow pressure on taxpayers.

Key changes include:

Overseas tour programme packages
The earlier multi-rate structure has been removed and replaced with a single flat TCS rate of 2 percent, eliminating threshold-based differentiation.
Liberalised Remittance Scheme for education and medical purposes
TCS has been standardised at 2 percent, replacing higher and varied rates applicable earlier.
Specified goods and commodities
Certain items such as alcoholic liquor, scrap and selected minerals now attract a uniform TCS rate of 2 percent, instead of multiple rates.

Impact of the change:

Simplifies the TCS structure and compliance.
Reduces upfront tax collection on eligible transactions.
Improves liquidity for individuals and businesses without affecting final tax liability, as TCS remains adjustable against total tax payable.

What is the proposed change for ITR and revised return filing in Budget 2026-27?

Under the Union Budget 2026-27, the government has revised due dates for filing Income Tax Returns (ITR) and extended the deadline for filing revised returns, with the aim of easing compliance and reducing peak-season congestion.

New due dates for filing ITR:

For individual taxpayers (ITR-1 and ITR-2) whose accounts do not require audit, the due date to file the original ITR remains 31st July 2026.

For non-audit business taxpayers and trusts whose accounts are not required to be audited, the due date has been extended from 31st July to 31st August 2026.
For audit cases and companies, the due date continues to be 31st October 2026, and for cases involving transfer pricing provisions, the due date is 30th November 2026 under the revised framework.

Revised return filing deadline:

The period in which a taxpayer can file a revised return has been extended from nine months to twelve months from the end of the relevant tax year. This means the last date to file a revised ITR for the financial year 2025-26 (assessment year 2026-27) will be 31st March 2027 instead of the earlier 31st December 2026.

Penalty on late revised returns:

A nominal fee has been introduced for filing a revised return after the earlier nine-month period. A fee of Rs. 5,000 applies if total income exceeds Rs. 5 lakh, and Rs. 1,000 if total income is below Rs. 5 lakh.

What is the tax benefit for different category of taxpayers (0-24 lakhs)

Total Income	Tax Calculation as per Existing Rates (Finance (No.2) Act, 2024)	Tax Calculation as per Proposed Rates	Benefit from Revised Tax Rates/Slabs	Rebate Advantage (Based on Proposed Rates)	Overall Benefit (Compared to Current Slab Rates)	Tax Payable Under the New Regime
Column: 1	Column: 2	Column: 3	Column: 4 = Column 3 – Column 2	Column: 5	Column: 6 = Column 4+ Column 5	Column: 7
8 lakh	30,000	20,000	10,000	20,000	30,000	0
9 lakh	40,000	30,000	10,000	30,000	40,000	0
10 lakh	50,000	40,000	10,000	40,000	50,000	0
11 lakh	65,000	50,000	15,000	50,000	65,000	0
12 lakh	80,000	60,000	20,000	60,000	80,000	0
13 lakh	1,00,000	75,000	25,000	0	25,000	75,000
14 lakh	1,20,000	90,000	30,000	0	30,000	90,000
15 lakh	1,40,000	1,05,000	35,000	0	35,000	1,05,000
16 lakh	1,70,000	1,20,000	50,000	0	50,000	1,20,000
17 lakh	2,00,000	1,40,000	60,000	0	60,000	1,40,000
18 lakh	2,30,000	1,60,000	70,000	0	70,000	1,60,000
19 lakh	2,60,000	1,80,000	80,000	0	80,000	1,80,000
20 lakh	2,90,000	2,00,000	90,000	0	90,000	2,00,000
21 lakh	3,20,000	2,25,000	95,000	0	95,000	2,25,000
22 lakh	3,50,000	2,50,000	1,00,000	0	1,00,000	2,50,000
23 lakh	3,80,000	2,75,000	1,05,000	0	1,05,000	2,75,000
24 lakh	4,10,000	3,00,000	1,10,000	0	1,10,000	3,00,000
25 lakh	4,40,000	3,30,000	1,10,000	0	1,10,000	3,30,000
50 lakh	11,90,000	10,80,000	1,10,000	0	1,10,000	10,80,000

Resident individuals with an income exceeding Rs. 12 lakh will be eligible for marginal relief.

What is marginal relief?

Marginal relief is a tax benefit provided to individuals whose income slightly exceeds Rs. 12 lakh. Without this relief, such taxpayers would face a significantly higher tax liability due to slab-based taxation. For instance, while an individual earning exactly Rs. 12 lakh pays no tax, someone earning just above this threshold could face a sudden tax burden.

To prevent this sharp jump, marginal relief ensures that the additional tax payable does not exceed the excess income over Rs. 12 lakh. In this case, if the tax liability based on slabs is Rs. 61,500, but the individual's income exceeds Rs. 12 lakh by only a small margin, they would only be required to pay tax equivalent to the excess amount. For example, if their income is Rs. 12,10,000, they would pay Rs. 10,000 in tax, ensuring their take-home income remains fair.

Total Income	Income Tax without Marginal relief in Rs.	Actually payable income Tax with marginal relief
Rs. 12,10,000	61,500	10,000
Rs. 12,50,000	67,500	50,000
Rs. 12,70,000	70,500	70,000
Rs. 12,75,000	71,250	71,250 [ No marginal relief]

How the marginal relief is computed?

The marginal relief is computed in the following manner:

Amount to be charged (out of total income of Rs. 12, 10,000/-)	Tax Amount as per slab rates
Initial amount of 4 lakh	Nil (being basic exemption)
Tax on subsequent amount of 4 lakh (from 4 lakh to 8 lakh)	Rs. 20,000 (being 5% of Rs. 4 lakh)
Tax on subsequent amount of 4 lakh (from 8 lakh to 12 lakh)	Rs. 40,000/- (being 10% of Rs. 4 lakh)
Tax on balance amount of Rs. 10,000/-	Rs. 1500 ((being 15% of Rs. 10,000)
Aggregate tax liability	Rs. 61,500/-

1. Compute Tax as per Slab Rates

The tax liability is first calculated based on the applicable slab rates. For instance, if the total income is Rs. 12,10,000, the following steps apply:

2. Tax on Income up to Rs. 12,00,000

Since income up to Rs. 12 lakh qualifies for a rebate, the tax payable on this portion is Nil.

3. Comparison of Tax Liability

The tax liability without applying marginal relief is Rs. 61,500. This is then compared with the excess income over Rs. 12 lakh, which in this case is Rs. 10,000 (Rs. 12,10,000 - Rs. 12,00,000).

4. Calculating Marginal Relief

Marginal relief is determined by subtracting the excess income (Rs. 10,000) from the initially computed tax liability (Rs. 61,500).

5. Relief Amount

The relief granted under marginal relief is Rs. 51,500 (Rs. 61,500 - Rs. 10,000).

6. Final Tax Payable

After applying marginal relief, the final tax payable is Rs. 10,000 (Rs. 61,500 - Rs. 51,500).

What is an Income tax slab?

In India, individuals are required to pay income tax according to the tax slab their income falls within. These slabs delineate various income ranges, each associated with a specific tax rate, which escalates as income rises. This slab-based approach was devised to establish an equitable tax framework across the country. Adjustments to the income tax slabs are typically made during the budget announcements. Income tax is categorised into three distinct age-based groups

Individuals younger than 60 years,
Senior citizens aged between 60 and 80 years,
Super senior citizens aged over 80 years.

Features of new tax regime: FY 2025-26 (AY 2026-27)

The new tax regime introduces significant changes for taxpayers, offering revised exemption limits and rebates while simplifying the tax structure. Below are its key features:

Default tax regime – The new tax regime remains the default option, but individuals can opt for the old tax regime in any financial year, provided they do not have business income.
Higher basic exemption limit – Currently set at Rs. 3 lakh, the basic exemption limit will be increased to Rs. 4 lakh from April 1, 2025 (FY 2025-26), providing additional tax relief to all individual taxpayers.
Enhanced tax rebate under Section 87A – At present, taxable incomes up to Rs. 7 lakh qualify for a zero-tax rebate. From FY 2025-26, this limit will increase to Rs. 12 lakh, ensuring no tax liability up to that amount.
No change in highest surcharge rate – The highest surcharge rate of 25% on incomes exceeding Rs. 2 crore remains unchanged under Budget 2025, continuing the existing taxation structure for high-income earners.

These updates make the new tax regime more attractive, particularly for middle-income earners, by increasing exemptions and reducing overall tax liability.

Tax-free income in new tax regime (Financial Year 2025-26)

In the Financial Year 2025-26, the Indian government has introduced significant changes to the new tax regime, enhancing the tax-free income threshold for individuals. The basic exemption limit has been raised to Rs. 4 lakh, providing immediate relief to taxpayers.

Moreover, the rebate under Section 87A has been increased to Rs. 60,000 for taxable incomes up to Rs. 12 lakh. This means that individuals earning up to Rs. 12 lakh will have their tax liability effectively reduced to zero.

For salaried employees, an additional standard deduction of Rs. 75,000 elevates the tax-free income threshold to Rs. 12.75 lakh. These adjustments aim to simplify the tax structure and enhance disposable income for middle-income earners.

How will income up to Rs 12 lakhs be tax free?

Let us consider an example of an individual earning Rs.12 lakh annually under the new tax regime.

For income up to Rs.4 lakh – Zero tax
For income between Rs.4 lakh and Rs.8 lakh – Rs.20,000 tax
For income between Rs.8 lakh and Rs.12 lakh – Rs.40,000 tax
Total tax liability – Rs.60,000

However, under the new tax regime, the enhanced Section 87A rebate eliminates the entire Rs.60,000, making the final tax payable zero for individuals earning up to Rs.12 lakh. In contrast, under the old tax slab, an individual earning Rs.12 lakh had to pay Rs.1,72,500 in taxes.

More Examples:

For individuals earning Rs.15 lakh annually – The new tax regime imposes a Rs.1,40,000 tax, compared to Rs.2,62,500 under the old regime, resulting in a saving of Rs.1,22,500. This provides significant relief for middle-income earners.
For individuals earning Rs.25 lakh annually – The new tax regime requires them to pay Rs.4,40,000, compared to Rs.5,62,500 under the previous system. This leads to a tax saving of Rs.1,22,500, increasing disposable income and encouraging investments.

These revised slabs offer notable tax benefits, making the new tax regime a more attractive option for taxpayers.

Understanding income tax scenarios in the new regime - FY 2026-27 (AY 2027-28)

The new tax regime introduces structured tax slabs, providing clarity on how income tax is calculated based on taxable income. Below are three different scenarios demonstrating tax liability and rebate eligibility.

Scenario 1 – Income Rs.11.5 lakh (Less than Rs.12 lakh)

Since your taxable income is below Rs.12 lakh, you qualify for the full Section 87A rebate.
Total tax payable = Rs.0

Scenario 2 – Income Rs.12.75 lakh (Between Rs.12 lakh - Rs.12.75 lakh)

After availing the Rs.75,000 standard deduction, taxable income reduces to Rs.12 lakh.
This ensures you still qualify for the 100% rebate, leading to zero tax liability.

Scenario 3 – Income Rs.13 lakh (More than Rs.12.75 lakh)

Since income exceeds Rs.12.75 lakh, the rebate is no longer available.
Taxable income after standard deduction = Rs.13 lakh - Rs.75,000 = Rs.12.25 lakh
Tax Calculation:
- Rs.0 - Rs.4 lakh → No tax
- Rs.4 lakh - Rs.8 lakh → 5% on Rs.4 lakh = Rs.20,000
- Rs.8 lakh - Rs.12 lakh → 10% on Rs.4 lakh = Rs.40,000
- Rs.12 lakh - Rs.12.25 lakh → 15% on Rs.25,000 = Rs.3,750
Total tax before marginal relief = Rs.63,750
With marginal relief, applicable tax liability = Rs.25,000 + cess

Key takeaways:

Income up to Rs.12.75 lakh qualifies for zero tax due to rebate.
Income above Rs.12.75 lakh is fully taxable from Rs.4 lakh onwards.
Basic exemption limit is Rs.4 lakh, not Rs.12 lakh.
This applies only under the new tax regime.
Capital gains (STCG & LTCG) are taxed separately.
Applies to resident individuals only.

How much tax will you pay? Salary specific breakdown?

With the revised income tax slab and rates, individuals can benefit from significant tax savings. Below is a breakdown of tax liability at different income levels:

If your taxable income is Rs.13 lakh

15% tax on Rs.12-13 lakh = Rs.15,000
Total tax payable = Rs.75,000
Previous tax liability = Rs.1 lakh → Savings of Rs.25,000

If your taxable income is Rs.15 lakh

15% tax on Rs.12-15 lakh = Rs.45,000
Total tax payable = Rs.1,05,000
Previous tax liability = Rs.1.40 lakh → Savings of Rs.35,000

If your taxable income is Rs.20 lakh

20% tax on Rs.16-20 lakh = Rs.80,000
Total tax payable = Rs.2,00,000
Previous tax liability = Rs.2.90 lakh → Savings of Rs.90,000

If your taxable income is Rs.25 lakh

30% tax on Rs.24-25 lakh = Rs.30,000
Total tax payable = Rs.3,30,000
Previous tax liability = Rs.4.40 lakh → Savings of Rs.1.10 lakh

These revised slabs significantly lower the tax burden, providing greater savings for individuals under the new tax regime.

Does the new tax slab apply to all individuals?

No, the new tax slab applies only to individuals opting for the new tax regime. It is the default regime, but taxpayers can choose the old tax regime if they do not have business income. The revised income tax slab and rates are applicable to resident individuals and Hindu Undivided Families (HUFs) but do not cover businesses, partnerships, or corporate taxpayers. Additionally, capital gains (STCG & LTCG) are taxed separately and do not qualify for slab-based taxation. Individuals must carefully assess their deductions and exemptions before selecting the most beneficial tax regime for their financial planning.

Current income tax slabs under the new tax regime – FY 2026–27 (AY 2027–28)

The new tax regime, retained as the default option for individual taxpayers, offers simplified calculations with fewer deductions. Taxpayers can still opt for the old regime if it is more beneficial, especially for senior citizens or those claiming multiple deductions.

The new tax regime slab rates for FY 2025‑26 (AY 2026‑27) have been retained from the previous year, continuing to provide significant tax relief for individual taxpayers compared to earlier slabs.

These rates apply uniformly to all taxpayers, regardless of age. This means that individuals below 60 years, senior citizens (60–80 years), and super senior citizens (80+ years) are all taxed under the same slabs in the new regime.

In contrast, the old tax regime still provides certain benefits for senior citizens, including higher basic exemption limits and additional deductions, which may make it preferable for some elderly taxpayers depending on their income and deductions.

Income tax slabs and rates for financial year 2026-27 under the old tax regime

The income tax slabs under the old regime remained unchanged for the financial year 2026-27 (Assessment Year 2027-28). Here's a summary:

Individuals below 60 years, HUFs, BOIs, and AoPs:
- Up to Rs. 2.5 lakh: Nil
- Rs. 2.5 lakh to Rs. 5 lakh: Up to 5% tax
- Rs. 5 lakh to Rs. 10 lakh: 20% tax
- Above Rs. 10 lakh: 30% tax
Senior Citizens (60-80 years):
- Up to Rs. 3 lakh: Nil
- Rs. 3 lakh to Rs. 5 lakh: Up to 5% tax
- Rs. 5 lakh to Rs. 10 lakh: 20% tax
- Above Rs. 10 lakh: 30% tax
Super Senior Citizens (80+ years):
- Up to Rs. 5 lakh: Nil
- Rs. 5 lakh to Rs. 10 lakh: 20% tax
- Above Rs. 10 lakh: 30% tax

You can use an income tax calculator to determine your tax liability for the financial year 2026-27. If you need assistance, you can consult a tax professional.

Income tax slabs applicable for FY 2026–27 (AY 2027–28)

Category	Taxable income range (Rs.)	Tax rate (%)
Individuals below 60 years	Up to Rs. 2,50,000	Nil
	Rs. 2,50,001 to Rs. 5,00,000	5%
	Rs. 5,00,001 to Rs. 10,00,000	20%
	Above Rs. 10,00,000	30%
Senior citizens (60 to below 80 years)	Up to Rs. 3,00,000	Nil
	Rs. 3,00,001 to Rs. 5,00,000	5%
	Rs. 5,00,001 to Rs. 10,00,000	20%
	Above Rs. 10,00,000	30%
Super senior citizens (80 years and above)	Up to Rs. 5,00,000	Nil
	Rs. 5,00,001 to Rs. 10,00,000	20%
	Above Rs. 10,00,000	30%

Notes & Key Points

Standard Deductions & Exemptions: Unlike the new tax regime, the old tax regime allows various deductions and exemptions (e.g., Section 80C investments, HRA, LTA, standard deduction, home loan interest, etc.). These can reduce taxable income before applying the slabs.
Rebate under Section 87A: Under the old regime, if net taxable income is up to Rs. 5 lakh, a rebate under Section 87A can reduce the tax liability to zero (subject to conditions).
Surcharge & Cess: On top of these rates, surcharge (for higher income brackets) and Health & Education Cess @ 4% apply as per standard rules.

Old tax regime vs new tax regime: FY 2024-25 (AY 2025-26) vs. FY 2023-24 (AY 2024-25)

The Finance Act, 2024 has revised Section 115BAC from AY 2024–25, making the new tax regime the default option for individuals, HUFs, AOPs (excluding co-operative societies), BOIs, and Artificial Juridical Persons. Taxpayers, however, retain the choice to opt out and continue under the old tax regime. The old system allows for various deductions and exemptions that are not available in the new regime.

For taxpayers without business income, the regime can be chosen annually while filing the ITR within the due date under Section 139(1).

For those with income from business or profession, the new regime remains the default. To opt for the old tax regime, they must file Form 10-IEA before the due date under Section 139(1). The same form is also required if they later wish to withdraw this choice. However, switching back to the old tax regime after opting out is permitted only once in a lifetime for business and professional taxpayers.

Old Tax Regime			New Tax Regime u/s 115BAC
Income Tax Slab	Income Tax Rate	*Surcharge	Income Tax Slab	Income Tax Rate	*Surcharge
Up to Rs. 2,50,000	Nil	Nil	Up to Rs. 3,00,000	Nil	Nil
Rs. 2,50,001 - Rs. 5,00,000**	5% above Rs. 2,50,000	Nil	Rs. 3,00,001 - Rs. 7,00,000**	5% above Rs. 3,00,000	Nil
Rs. 5,00,001 - Rs. 10,00,000	Rs. 12,500 + 20% above Rs. 5,00,000	Nil	Rs. 7,00,001 - Rs. 10,00,000	Rs. 20,000 + 10% above Rs. 7,00,000	Nil
Rs. 10,00,001- Rs. 50,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	Nil	Rs. 10,00,001 - Rs. 12,00,000	Rs. 50,000 + 15% above Rs. 10,00,000	Nil
Rs. 50,00,001- Rs. 100,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	10%	Rs. 12,00,001 - Rs. 15,00,000	Rs. 80,000 + 20% above Rs. 12,00,000	Nil
Rs. 100,00,001- Rs. 200,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	15%	Rs. 15,00,001- Rs. 50,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	Nil
Rs. 200,00,001- Rs. 500,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	25%	Rs. 50,00,001- Rs. 100,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	10%
Above Rs. 500,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	37%	Rs. 100,00,001- Rs. 200,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	15%
			Above Rs. 200,00,001	Rs. 1,40,000 + 30% above Rs. 15,00,000	25%

The Interim Budget 2024-25 initially retained the same income tax slabs and rates for the Assessment Year 2025-26 as the previous year. However, the full Budget 2024 introduced changes, making the new tax regime the default option for individuals, HUFs, and other entities. While taxpayers have the option to choose the old regime with its deductions and exemptions, the new regime offers revised tax slabs and rates. For those with income from business or profession, the option to switch between regimes is available only once.

Old tax regime slabs and rates for individual taxpayers below 60 years (AY 2025-26, FY 2024-25)

Under the old tax regime, individual taxpayers below 60 years enjoy a progressive tax structure. The first Rs. 2,50,000 of income is tax-free. Income between Rs. 2,50,001 and Rs. 5,00,000 is taxed at 5%, while income between Rs. 5,00,001 and Rs. 10,00,000 is taxed at 20% plus a flat rate of Rs. 12,500. Income exceeding Rs. 10,00,000 is taxed at 30% plus a flat rate of Rs. 1,12,500. A surcharge is applicable on higher incomes, ranging from 10% for income between Rs. 50,00,001 and Rs. 1,00,00,000 to 37% for income exceeding Rs. 5,00,00,000.

income tax slabs and rates under the old tax regime for individuals (both residents and non-residents) who were less than 60 years of age at any point during the previous year are as follows:

Income Tax Slab	Income Tax Rate	*Surcharge
Up to Rs. 2,50,000	Nil	Nil
Rs. 2,50,001 - Rs. 5,00,000**	5% above Rs. 2,50,000	Nil
Rs. 5,00,001 - Rs. 10,00,000	Rs. 12,500 + 20% above Rs. 5,00,000	Nil
Rs. 10,00,001- Rs. 50,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	Nil
Rs. 50,00,001- Rs. 100,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	10%
Rs. 100,00,001- Rs. 200,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	15%
Rs. 200,00,001- Rs. 500,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	25%
Above Rs. 500,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	37%

Old tax regime slabs and rates for senior citizens aged 60 to 80 years (AY 2025-26, FY 2024-25)

The old tax regime offers some benefits for senior citizens. The basic exemption limit is increased to Rs. 3,00,000. Subsequently, income between Rs. 3,00,001 and Rs. 5,00,000 is taxed at 5%, and income between Rs. 5,00,001 and Rs. 10,00,000 is taxed at 20% with a flat rate of Rs. 10,000. Income exceeding Rs. 10,00,000 is taxed at 30% with a flat rate of Rs. 1,12,500. A surcharge is applicable on higher incomes, with rates ranging from 10% for income between Rs. 50,00,001 and Rs. 1,00,00,000 to 37% for income exceeding Rs. 5,00,00,000. This structure provides slightly higher tax thresholds for senior citizens compared to those below 60 years.

See the below table to explore more" to move forward to the table.

Income Tax Slab	Income Tax Rate	*Surcharge
Up to Rs. 3,00,000	Nil	Nil
Rs. 3,00,001 - Rs. 5,00,000**	5% above Rs. 3,00,000	Nil
Rs. 5,00,001 - Rs. 10,00,000	Rs. 10,000 + 20% above Rs. 5,00,000	Nil
Rs. 10,00,001- Rs. 50,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	Nil
Rs. 50,00,001- Rs. 100,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	10%
Rs. 100,00,001- Rs. 200,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	15%
Rs. 200,00,001- Rs. 500,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	25%
Above Rs. 500,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	37%

Old tax regime slabs and rates for super senior citizens aged over 80 years (AY 2025-26, FY 2024-25)

For super senior citizens (aged 80 years and above), the old tax regime provides a higher tax exemption limit of Rs. 5,00,000. Income exceeding Rs. 5,00,000 is taxed at 20% up to Rs. 10,00,000 and 30% thereafter, with a flat rate of Rs. 10,000 and Rs. 1,12,500 applicable respectively. A surcharge ranging from 10% to 37% is levied on incomes exceeding Rs. 50,00,000, with the highest rate applicable for incomes exceeding Rs. 5 crores.

See the below table to explore more.

Income Tax Slab	Income Tax Rate	*Surcharge
Up to Rs. 5,00,000	Nil	Nil
Rs. 5,00,001 - Rs. 10,00,000	20% above Rs. 5,00,000	Nil
Rs. 10,00,001- Rs. 50,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	Nil
Rs. 50,00,001- Rs. 100,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	10%
Rs. 100,00,001- Rs. 200,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	15%
Rs. 200,00,001- Rs. 500,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	25%
Above Rs. 500,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	37%

Individual taxpayers aged less than 60 years old: New tax slabs for AY 2025-26

The table showcases the income tax slabs and rates for different income levels in India. Individuals earning up to Rs. 3,00,000 are exempt from income tax. For income between Rs. 3,00,001 and Rs. 7,00,000, a 5% tax rate applies. As income increases, the tax rate also increases, reaching 30% for income exceeding Rs. 15,00,000. Surcharges are applicable on higher income levels, starting at 10% for income exceeding Rs. 50,00,000 and increasing to 25% for income exceeding Rs. 2,00,00,000.

Income Tax Slab	Income Tax Rate	*Surcharge
Up to Rs. 3,00,000	Nil	Nil
Rs. 3,00,001 - Rs. 7,00,000**	5% above Rs. 3,00,000	Nil
Rs. 7,00,001 - Rs. 10,00,000	Rs. 20,000 + 10% above Rs. 7,00,000	Nil
Rs. 10,00,001 - Rs. 12,00,000	Rs. 50,000 + 15% above Rs. 10,00,000	Nil
Rs. 12,00,001 - Rs. 15,00,000	Rs. 80,000 + 20% above Rs. 12,00,000	Nil
Rs. 15,00,001- Rs. 50,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	Nil
Rs. 50,00,001- Rs. 1,00,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	10%
Rs. 100,00,001- Rs. 2,00,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	15%
Above Rs. 2,00,00,001	Rs. 1,40,000 + 30% above Rs. 15,00,000	25%

Old vs new income tax slabs and tax rates for individual taxpayers aged less than 60 years old

The income tax regime for individual taxpayers aged below 60 years offers two options: the old regime with deductions and exemptions, and the new regime with lower tax rates but no exemptions. To help you make an informed decision, the table below compares the tax slabs and rates under both regimes, highlighting their key differences.

Old Tax Regime			New Tax Regime u/s 115BAC
Income Tax Slab	Income Tax Rate	*Surcharge	Income Tax Slab	Income Tax Rate	*Surcharge
Up to Rs. 2,50,000	Nil	Nil	Up to Rs. 3,00,000	Nil	Nil
Rs. 2,50,001 - Rs. 5,00,000**	5% above Rs. 2,50,000	Nil	Rs. 3,00,001 - Rs. 7,00,000**	5% above Rs. 3,00,000	Nil
Rs. 5,00,001 - Rs. 10,00,000	Rs. 12,500 + 20% above Rs. 5,00,000	Nil	Rs. 7,00,001 - Rs. 10,00,000	Rs. 20,000 + 10% above Rs. 7,00,000	Nil
Rs. 10,00,001- Rs. 50,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	Nil	Rs. 10,00,001 - Rs. 12,00,000	Rs. 50,000 + 15% above Rs. 10,00,000	Nil
Rs. 50,00,001- Rs. 1,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	10%	Rs. 12,00,001 - Rs. 15,00,000	Rs. 80,000 + 20% above Rs. 12,00,000	Nil
Rs. 1,00,00,001- Rs. 2,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	15%	Rs. 15,00,001- Rs. 50,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	Nil
Rs. 2,00,00,001- Rs. 5,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	25%	Rs. 50,00,001- Rs. 100,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	10%
Above Rs. 5,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	37%	Rs. 1,00,00,001- Rs. 200,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	15%
			Above Rs. 2,00,00,001	Rs. 1,40,000 + 30% above Rs. 15,00,000	25%

Senior citizen taxpayers aged between 60 to 80 years: New tax slabs for AY 2025-26

The table illustrates the income tax slabs and corresponding tax rates for different income levels in India. Individuals earning up to Rs. 3,00,000 are exempt from income tax. For income between Rs. 3,00,001 and Rs. 7,00,000, a 5% tax rate is applicable. As income increases, the tax rate also increases, reaching 30% for income exceeding Rs. 15,00,000. Surcharges are applicable on higher income levels, starting at 10% for income exceeding Rs. 50,00,000 and increasing to 25% for income exceeding Rs. 2,00,00,000.

Income Tax Slab	Income Tax Rate	*Surcharge
Up to Rs. 3,00,000	Nil	Nil
Rs. 3,00,001 - Rs. 7,00,000**	5% above Rs. 3,00,000	Nil
Rs. 7,00,001 - Rs. 10,00,000	Rs. 20,000 + 10% above Rs. 7,00,000	Nil
Rs. 10,00,001 - Rs. 12,00,000	Rs. 50,000 + 15% above Rs. 10,00,000	Nil
Rs. 12,00,001 - Rs. 15,00,000	Rs. 80,000 + 20% above Rs. 12,00,000	Nil
Rs. 15,00,001- Rs. 50,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	Nil
Rs. 50,00,001- Rs. 1,00,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	10%
Rs. 1,00,00,001- Rs. 2,00,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	15%
Above Rs. 2,00,00,001	Rs. 1,40,000 + 30% above Rs. 15,00,000	25%

Old vs new income tax slabs and tax rates for senior citizen taxpayers aged between 60 to 80 years

To make informed financial decisions, it's essential for senior citizens (aged 60 to 80 years) to understand the differences between the old and new income tax slabs. The Indian government has introduced new tax regimes to simplify tax calculations, and it's crucial to assess how these changes impact your tax liability. This section provides a comparative analysis of the old and new income tax slabs and rates, enabling you to determine which regime offers the most advantageous tax outcome.

Old Tax Regime			New Tax Regime u/s 115BAC
Income Tax Slab	Income Tax Rate	*Surcharge	Income Tax Slab	Income Tax Rate	*Surcharge
Up to Rs. 3,00,000	Nil	Nil	Up to Rs. 3,00,000	Nil	Nil
Rs. 3,00,001 - Rs. 5,00,000**	5% above Rs. 3,00,000	Nil	Rs. 3,00,001 - Rs. 7,00,000**	5% above Rs. 3,00,000	Nil
Rs. 5,00,001 - Rs. 10,00,000	Rs. 10,000 + 20% above Rs. 5,00,000	Nil	Rs. 7,00,001 - Rs. 10,00,000	Rs. 20,000 + 10% above Rs. 7,00,000	Nil
Rs. 10,00,001- Rs. 50,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	Nil	Rs. 10,00,001 - Rs. 12,00,000	Rs. 50,000 + 15% above Rs. 10,00,000	Nil
Rs. 50,00,001- Rs. 1,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	10%	Rs. 12,00,001 - Rs. 15,00,000	Rs. 80,000 + 20% above Rs. 12,00,000	Nil
Rs. 1,00,00,001- Rs. 2,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	15%	Rs. 15,00,001- Rs. 50,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	Nil
Rs. 2,00,00,001- Rs. 5,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	25%	Rs. 50,00,001- Rs. 100,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	10%
Above Rs. 5,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	37%	Rs. 1,00,00,001- Rs. 200,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	15%
			Above Rs. 2,00,00,001	Rs. 1,40,000 + 30% above Rs. 15,00,000	25%

Super senior citizen taxpayers aged over 80 years: New tax slabs for AY 2025-26

The table outlines the income tax slabs and corresponding tax rates for different income levels in India for individuals above 80 years of age. Individuals earning up to Rs. 3,00,000 are exempt from income tax. For income between Rs. 3,00,001 and Rs. 7,00,000, a 5% tax rate is applicable. As income increases, the tax rate also increases, reaching 30% for income exceeding Rs. 15,00,000. Surcharges are applicable on higher income levels, starting at 10% for income exceeding Rs. 50,00,000 and increasing to 25% for income exceeding Rs. 2,00,00,000.

Income Tax Slab	Income Tax Rate	*Surcharge
Up to Rs. 3,00,000	Nil	Nil
Rs. 3,00,001 - Rs. 7,00,000**	5% above Rs. 3,00,000	Nil
Rs. 7,00,001 - Rs. 10,00,000	Rs. 20,000 + 10% above Rs. 7,00,000	Nil
Rs. 10,00,001 - Rs. 12,00,000	Rs. 50,000 + 15% above Rs. 10,00,000	Nil
Rs. 12,00,001 - Rs. 15,00,000	Rs. 80,000 + 20% above Rs. 12,00,000	Nil
Above Rs. 15,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	Nil
Rs. 15,00,001- Rs. 50,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	Nil
Rs. 50,00,001- Rs. 100,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	10%
Rs. 100,00,001- Rs. 200,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	15%
Above Rs. 200,00,001	Rs. 1,40,000 + 30% above Rs. 15,00,000	25%

Old vs new income tax slabs and tax rates for super senior citizen individual taxpayers aged over 80 years

The Indian tax system provides specific benefits to super senior citizens (aged 80+). This section compares the old and new income tax slabs and rates for this demographic, enabling you to understand the differences and make informed decisions about which tax regime offers the most advantageous tax outcome.

Old Tax Regime			New Tax Regime u/s 115BAC
Income Tax Slab	Income Tax Rate	*Surcharge	Income Tax Slab	Income Tax Rate	*Surcharge
Up to Rs. 5,00,000	Nil	Nil	Up to Rs. 3,00,000	Nil	Nil
Rs. 5,00,001 - Rs. 10,00,000	20% above Rs. 5,00,000	Nil	Rs. 3,00,001 - Rs. 7,00,000**	5% above Rs. 3,00,000	Nil
Rs. 10,00,001- Rs. 50,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	Nil	Rs. 7,00,001 - Rs. 10,00,000	Rs. 20,000 + 10% above Rs. 7,00,000	Nil
Rs. 50,00,001- Rs. 100,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	10%	Rs. 10,00,001 - Rs. 12,00,000	Rs. 50,000 + 15% above Rs. 10,00,000	Nil
Rs. 100,00,001- Rs. 200,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	15%	Rs. 12,00,001 - Rs. 15,00,000	Rs. 80,000 + 20% above Rs. 12,00,000	Nil
Rs. 200,00,001- Rs. 500,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	25%	Above Rs. 15,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	Nil
Above Rs. 500,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	37%	Rs. 15,00,001- Rs. 50,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	Nil
			Rs. 50,00,001- Rs. 100,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	10%
			Rs. 100,00,001- Rs. 200,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	15%
			Above Rs. 200,00,001	Rs. 1,40,000 + 30% above Rs. 15,00,000	25%

Understanding the revised New Tax Regime: What’s changed?

The Union Budget 2024 has introduced significant updates to the income tax regime, aimed at simplifying the tax structure and providing relief to taxpayers. The revised income tax slabs bring expanded thresholds for certain categories, ensuring more taxpayers benefit from lower rates. These changes not only reflect the government's commitment to boosting disposable income but also encourage individuals to adopt the new tax regime. The following table depicts the changes made in the new regime to benefit the taxpayers:

Income Tax Slabs for FY 2023-24	Tax Rates (FY 2023-24)	Income Tax Slabs for FY 2024-25	Tax Rates (FY 2024-25)	Changes
Up to Rs. 3,00,000	NIL	Up to Rs. 3,00,000	NIL	No Change
Rs. 3,00,000 – Rs. 6,00,000	5%	Rs. 3,00,000 – Rs. 7,00,000	5%	Slab expanded by Rs 1,00,000
Rs. 6,00,000 - Rs 9,00,000	10%	Rs. 7,00,000 – Rs. 10,00,000	10%	Slab expanded by Rs 1,00,000
Rs. 9,00,000 - Rs 12,00,000	15%	Rs. 10,00,000 – Rs. 12,00,000	15%	No Change in Rate; New Threshold
Rs. 12,00,000 - Rs 15,00,000	20%	Rs. 12,00,000 – Rs. 15,00,000	20%	No Change
Above Rs. 15,00,000	30%	Above Rs. 15,00,000	30%	No Change

I. In case of an individual (resident or non-resident), HUF, AOP, BOI, or other artificial juridical person

Net taxable income	Old regime tax rate FY 2024-25	Surcharge	Net taxable income	New regime tax rate FY 2024-25	Surcharge
Up to Rs. 2,50,000	Nil	Nil	Up to Rs. 3,00,000	Nil	Nil
Rs. 2,50,001 – Rs. 5,00,000	5% above Rs. 2,50,000	Nil	Rs. 3,00,001 – Rs. 7,00,000	5% above Rs. 3,00,000	Nil
Rs. 5,00,001 – Rs. 10,00,000	Rs. 12,500 + 20% above Rs. 5,00,000	Nil	Rs. 7,00,001 – Rs. 10,00,000	Rs. 20,000 + 10% above Rs. 7,00,000	Nil
Rs. 10,00,001 – Rs. 50,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	Nil	Rs. 10,00,001 – Rs. 12,00,000	Rs. 50,000 + 15% above Rs. 10,00,000	Nil
Rs. 50,00,001 – Rs. 1,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	10%	Rs. 12,00,001 – Rs. 15,00,000	Rs. 80,000 + 20% above Rs. 12,00,000	Nil
Rs. 1,00,00,001 – Rs. 2,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	15%	Rs. 15,00,001 – Rs. 50,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	Nil
Rs. 2,00,00,001 – Rs. 5,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	25%	Rs. 50,00,001 – Rs. 1,00,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	10%
Above Rs. 5,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	37%	Rs. 1,00,00,001 – Rs. 2,00,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	15%
			Above Rs. 2,00,00,000	Rs. 1,87,500 + 30% above Rs. 15,00,000	25%

II. In case of a senior citizen (resident or non-resident, 60 years or more but less than 80 years)

Net taxable income	Old regime tax rate FY 2024-25	Surcharge	Net taxable income	New regime tax rate FY 2024-25	Surcharge
Up to Rs. 3,00,000	Nil	Nil	Up to Rs. 3,00,000	Nil	Nil
Rs. 3,00,001 – Rs. 5,00,000	5% above Rs. 3,00,000	Nil	Rs. 3,00,001 – Rs. 7,00,000	5% above Rs. 3,00,000	Nil
Rs. 5,00,001 – Rs. 10,00,000	Rs. 10,000 + 20% above Rs. 5,00,000	Nil	Rs. 7,00,001 – Rs. 10,00,000	Rs. 20,000 + 10% above Rs. 7,00,000	Nil
Rs. 10,00,001 – Rs. 50,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	Nil	Rs. 10,00,001 – Rs. 12,00,000	Rs. 50,000 + 15% above Rs. 10,00,000	Nil
Rs. 50,00,001 – Rs. 1,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	10%	Rs. 12,00,001 – Rs. 15,00,000	Rs. 80,000 + 20% above Rs. 12,00,000	Nil
Rs. 1,00,00,001 – Rs. 2,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	15%	Rs. 15,00,001 – Rs. 50,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	Nil
Rs. 2,00,00,001 – Rs. 5,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	25%	Rs. 50,00,001 – Rs. 1,00,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	10%
Above Rs. 5,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	37%	Rs. 1,00,00,001 – Rs. 2,00,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	15%
			Above Rs. 2,00,00,000	Rs. 1,87,500 + 30% above Rs. 15,00,000	25%

III. In case of a super senior citizen (resident or non-resident, 80 years or above)

Net taxable income	Old regime tax rate FY 2024-25	Surcharge	Net taxable income	New regime tax rate FY 2024-25	Surcharge
Up to Rs. 5,00,000	Nil	Nil	Up to Rs. 3,00,000	Nil	Nil
Rs. 5,00,001 – Rs. 10,00,000	20% above Rs. 5,00,000	Nil	Rs. 3,00,001 – Rs. 7,00,000	5% above Rs. 3,00,000	Nil
Rs. 10,00,001 – Rs. 50,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	Nil	Rs. 7,00,001 – Rs. 10,00,000	Rs. 20,000 + 10% above Rs. 7,00,000	Nil
Rs. 50,00,001 – Rs. 1,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	10%	Rs. 10,00,001 – Rs. 12,00,000	Rs. 50,000 + 15% above Rs. 10,00,000	Nil
Rs. 1,00,00,001 – Rs. 2,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	15%	Rs. 12,00,001 – Rs. 15,00,000	Rs. 80,000 + 20% above Rs. 12,00,000	Nil
Rs. 2,00,00,001 – Rs. 5,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	25%	Rs. 15,00,001 – Rs. 50,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	Nil
Above Rs. 5,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	37%	Rs. 50,00,001 – Rs. 1,00,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	10%
			Rs. 1,00,00,001 – Rs. 2,00,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	15%
			Above Rs. 2,00,00,000	Rs. 1,87,500 + 30% above Rs. 15,00,000	25%

Note:

Rebate under Section 87A is available.
Health and Education Cess is applicable.
The enhanced surcharge of 25% and 37% is not levied on income taxable under sections 111A, 112, 112A, and dividend income. For such cases, the maximum surcharge rate is capped at 15%, except under sections 115A, 115AB, 115AC, 115ACA, and 115E.

Increased Standard Deduction for FY 2026‑27 (AY 2027‑28)

The Union Budget 2026 continues the standard deduction for salaried individuals and pensioners at Rs. 50,000 for AY 2027–28, with no increase announced in the current budget. This is the same level that has been in force since it was enhanced in earlier budgets.

Since the standard deduction is available to all eligible taxpayers regardless of income level, it provides direct tax relief without requiring any tax-saving investments.

For individuals in the highest 30 percent tax slab, this translates into tax savings of up to Rs. 15,000 (excluding cess) purely through the standard deduction.

Eligibility

Applicable: Salaried employees and pensioners
Not applicable: Self-employed individuals, professionals, and non-individual taxpayers such as Hindu Undivided Families (HUFs)

Other Notable Points – Income Tax AY 2027‑28 (FY 2026‑27)

1. Surcharge and Cess: The income tax rates outlined above do not include the surcharge and health and education cess. A 4% health and education cess is applicable on the total tax payable. For incomes exceeding Rs. 50 lakh in FY 2024-25, the surcharge applies as follows:

Annual Taxable Income	Surcharge on Income Tax (Old Tax Regime)	Surcharge on Income Tax (New Tax Regime)
Up to Rs. 50 Lakh	Nil	Nil
Over Rs. 50 Lakh and up to Rs. 1 Crore	10%	10%
Over Rs. 1 Crore and up to Rs. 2 Crore	15%	15%
Over Rs. 2 Crore and up to Rs. 5 Crore	25%	25%
Over Rs. 5 Crore	37%	25%

As evident, the maximum surcharge under the new tax regime is capped at 25%, whereas, the maximum surcharge payable under the old tax regime for AY 2025-26 is 37%.

2. Gender Neutrality: The income tax slabs and rates are identical for both male and female taxpayers.

3. Tax Rebate:

Old Tax Regime: If your taxable income falls below Rs. 5 lakh in FY 2026-27, you are eligible for a tax rebate of up to Rs. 12,500 under Section 87A.
New Tax Regime: If your annual taxable income is up to Rs. 7 lakh, you are eligible for a similar 100% tax rebate under Section 87A.

15 key Income Tax rule changes in 2026 that will influence ITR filing in 2027

The Union Budget 2026 introduced several key changes to income tax rules that will significantly impact taxpayers. As you prepare to file your Income Tax Returns (ITR) for FY 2026‑27, understanding these updates is crucial to optimize your tax liability. Here’s an overview of the key updates and their implications

1. New Income Tax Slabs Under the New Tax Regime

The government has revamped the income tax slabs under the new tax regime, enabling taxpayers to save up to Rs. 17,500 annually.

New Slabs for FY 2024-25:
- Up to Rs. 3,00,000: Nil
- Rs. 3,00,001 to Rs. 6,00,000: 5%
- Rs. 6,00,001 to Rs. 9,00,000: 10%
- Rs. 9,00,001 to Rs. 12,00,000: 15%
- Rs. 12,00,001 to Rs. 15,00,000: 20%
- Above Rs. 15,00,000: 30%

2. Standard Deduction Limit Increased

For those opting for the new tax regime, the standard deduction has been increased:

Salaried individuals: From Rs. 50,000 to Rs. 75,000.
Family pensioners: From Rs. 15,000 to Rs. 25,000.

3. Higher Deduction on Employer's NPS Contribution

The employer's contribution to the National Pension System (NPS) now allows deductions of up to 14% of the basic salary under the new tax regime, compared to 10% previously.

4. Revised Tax Rates for LTCG and STCG

Changes in capital gains taxation include:

Short-Term Capital Gains (STCG) on equity: 15% (unchanged, no change in FY 26‑27).
Long-Term Capital Gains (LTCG) on equity mutual funds: Exempt up to Rs. 1.25 lakh.

LTCG from other assets (e.g., real estate, gold): 12.5% with indexation benefit available for pre-July 2024 purchases.

5. New Holding Period Rules for Capital Gains

The categorization of capital gains as long-term or short-term now depends on simplified holding periods:

Listed securities: 12 months for long-term gains.
Unlisted securities: 24 months for long-term gains.

6. Rationalization of TDS Rates

The government has standardized TDS rates for several incomes. Key changes include:

Insurance commissions (non-company): 2%.
Payment of rent by HUFs/individuals: 2%.
E-commerce transactions: 0.1%.
These changes ensure simpler compliance and more consistency.

7. Claiming TDS/TCS Credits on Salaries

Taxpayers can now claim TDS and TCS credits on other incomes against salary income to reduce the tax deduction amount. This change offers salaried individuals better cash flow management.

8. TCS Credit Transfer

From January 1, 2025, parents or guardians can claim Tax Collected at Source (TCS) credits for payments made on behalf of their children, such as tuition fees for foreign education.

9. Taxation of Share Buybacks

The amended law now taxes proceeds from share buybacks in the hands of shareholders at their applicable income tax slab rate. Previously, companies paid Dividend Distribution Tax (DDT) on buybacks at 20%.

10. TCS on Notified Luxury Goods

Luxury goods purchases exceeding Rs. 10 lakh will attract TCS from January 2025. The specific list of luxury items and implementation details are awaited.

11. Updated TDS Rules for Property Sales

Buyers must deduct TDS from the total payment made to sellers if the property's sale value exceeds Rs. 50 lakh, even if the seller’s share is less than Rs. 50 lakh. This rule closes a potential loophole in property transactions.

12. TDS on RBI Floating Rate Bonds

Interest earned on RBI Floating Rate Bonds will now attract TDS if it exceeds Rs. 10,000 per month. This amendment ensures tax compliance for high-value interest income.

13. Vivad Se Vishwas Scheme 2.0

The revamped scheme facilitates resolution of pending tax litigations. Taxpayers can settle disputes with the Income Tax Department under this initiative, applicable from October 2024.

14. Aadhaar Enrollment Number Discontinued

From October 2024, quoting Aadhaar enrollment numbers in ITR or PAN applications will no longer be accepted. Taxpayers must have a valid Aadhaar number for these purposes.

15. Reduced Time Limit for Reopening Old ITRs

The Income Tax Department has reduced the time frame for reopening old ITRs from 10 years to 5 years if the income escaping assessment exceeds Rs. 50 lakh. This change reduces tax-related uncertainties for individuals.

Here's how income tax slab rates have changed for FY 2026-27

The Income Tax Slab Rates for the Financial Year 2026-27 have been updated, introducing modifications aimed at providing relief to taxpayers. These changes encompass adjustments to tax brackets and rates, potentially impacting various income groups. Explore the key updates to better understand your tax liabilities.

Income tax slabs for Hindu Undivided Family (HUF) for AY 2027-2028

The income tax rates for resident individuals and Hindu Undivided Families (HUFs) for the current fiscal year have been announced, featuring adjustments to provide tax relief and streamline fiscal responsibilities. These changes are designed to benefit a broad range of taxpayers.

Old Tax Regime			New Tax Regime u/s 115BAC
Income Tax Slab	Income Tax Rate	*Surcharge	Income Tax Slab	Income Tax Rate
Up to Rs. 2,50,000	Nil	Nil	Up to Rs. 3,00,000	Nil
Rs. 2,50,001 - Rs. 5,00,000**	5% above Rs. 2,50,000	Nil	Rs. 3,00,001 - Rs. 7,00,000**	5% above Rs. 3,00,000
Rs. 5,00,001 - Rs. 10,00,000	Rs. 12,500 + 20% above Rs. 5,00,000	Nil	Rs. 7,00,001 - Rs. 10,00,000	Rs. 20,000 + 10% above Rs. 7,00,000
Rs. 10,00,001- Rs. 50,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	Nil	Rs. 10,00,001 - Rs. 12,00,000	Rs. 50,000 + 15% above Rs. 10,00,000
Rs. 50,00,001- Rs. 1,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	10%	Rs. 12,00,001 - Rs. 15,00,000	Rs. 80,000 + 20% above Rs. 12,00,000
Rs. 1,00,00,001- Rs. 2,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	15%	Rs. 15,00,001- Rs. 50,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000
Rs. 2,00,00,001- Rs. 5,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	25%	Rs. 50,00,001- Rs. 1.00,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000
Above Rs. 5,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	37%	Rs. 1,00,00,001- Rs. 2,00,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000
			Above Rs. 2,00,00,001	Rs. 1,40,000 + 30% above Rs. 15,00,000

Income tax slabs for Non-Resident Individual (AY 2027-28)

The latest income tax rates for non-resident individuals have been released, reflecting adjustments tailored to align with global taxation standards. These changes are crucial for non-residents to understand in order to comply with Indian tax regulations and optimize their fiscal planning.

Old Tax Regime			New Tax Regime u/s 115BAC
Income Tax Slab	Income Tax Rate	*Surcharge	Income Tax Slab	Income Tax Rate	*Surcharge
Up to Rs. 2,50,000	Nil	Nil	Up to Rs. 3,00,000	Nil	Nil
Rs. 2,50,001 - Rs. 5,00,000	5% above Rs. 2,50,000	Nil	Rs. 3,00,001 - Rs. 7,00,000	5% above Rs. 3,00,000	Nil
Rs. 5,00,001 - Rs. 10,00,000	Rs. 12,500 + 20% above Rs. 5,00,000	Nil	Rs. 7,00,001 - Rs. 10,00,000	Rs. 20,000 + 10% above Rs. 7,00,000	Nil
Rs. 10,00,001- Rs. 50,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	Nil	Rs. 10,00,001 - Rs. 12,00,000	Rs. 50,000 + 15% above Rs. 10,00,000	Nil
Rs. 50,00,001- Rs. 1,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	10%	Rs. 12,00,001 - Rs. 15,00,000	Rs. 80,000 + 20% above Rs. 12,00,000	Nil
Rs. 1,00,00,001- Rs. 2,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	15%	Rs. 15,00,001- Rs. 50,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	Nil
Rs. 2,00,00,001- Rs. 5,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	25%	Rs. 50,00,001- Rs. 1,00,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	10%
Above Rs. 5,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	37%	Rs. 1,00,00,001- Rs. 2,00,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	15%
			Above Rs. 2,00,00,001	Rs. 1,40,000 + 30% above Rs. 15,00,000	25%

Association of Persons (AOP) / Body of Individuals (BOI) / Trust / Artificial Juridical Person (AJP) for AY 2027-28

The following tax rates apply to Associations of Persons (AOPs), Bodies of Individuals (BOIs), and Artificial Juridical Persons (AJPs) under both the old and new tax regimes.

Important Notes:

Trusts: Trusts that are not exempt from taxation as per relevant provisions and require approvals or registrations under the Income Tax Act are considered AOPs for tax purposes.
Default tax regime: The Finance Act 2023 has made the new tax regime the default for individuals, HUFs, AOPs (excluding co-operative societies), BOIs, and AJPs starting from Assessment Year 2024-25. However, these entities have the option to choose the old tax regime.
Switching regimes:
- For non-business income, entities can switch between the new and old regimes annually by indicating their choice in the income tax return (ITR) filed by the due date.
- For entities with income from business or profession, the option to switch between regimes is generally limited to a one-time decision. They need to file Form 10-IEA to opt for the old regime.
Co-operative societies: Co-operative societies can opt for the new tax regime from Assessment Year 2024-25 by filing Form 10-IFA.
Concessional tax for new manufacturing co-operatives: New manufacturing co-operative societies registered on or after April 1, 2023, and commencing manufacturing or production before March 31, 2024, can opt for a concessional tax rate of 15% under Section 115BAE. However, this option cannot be withdrawn once exercised.

Old Tax Regime			New Tax Regime u/s 115BAC
Income Tax Slab	Income Tax Rate	*Surcharge	Income Tax Slab	Income Tax Rate	*Surcharge
Up to Rs. 2,50,000	Nil	Nil	Up to Rs. 3,00,000	Nil	Nil
Rs. 2,50,001 - Rs. 5,00,000**	5% above Rs. 2,50,000	Nil	Rs. 3,00,001 - Rs. 7,00,000**	5% above Rs. 3,00,000	Nil
Rs. 5,00,001 - Rs. 10,00,000	Rs. 12,500 + 20% above Rs. 5,00,000	Nil	Rs. 7,00,001 - Rs. 10,00,000	Rs. 20,000 + 10% above Rs. 7,00,000	Nil
Rs. 10,00,001- Rs. 50,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	Nil	Rs. 10,00,001 - Rs. 12,00,000	Rs. 50,000 + 15% above Rs. 10,00,000	Nil
Rs. 50,00,001- Rs. 100,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	10%	Rs. 12,00,001 - Rs. 15,00,000	Rs. 80,000 + 20% above Rs. 12,00,000	Nil
Rs. 100,00,001- Rs. 200,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	15%	Rs. 15,00,001- Rs. 50,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	Nil
Rs. 200,00,001- Rs. 500,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	25%	Rs. 50,00,001- Rs. 100,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	10%
Above Rs. 500,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	37%	Rs. 100,00,001- Rs. 200,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	15%
			Above Rs. Rs. 200,00,001	Rs. 1,40,000 + 30% above Rs. 15,00,000	25%

Note: The income tax slabs for the financial year 2024-25 under the old tax regime remain unchanged from the previous year. Individuals below 60 years, HUFs, BOIs, and AoPs have zero tax liability on income up to ₹2.5 lakhs. Senior citizens (60-80 years) enjoy nil tax liability up to ₹3 lakhs, while super senior citizens (above 80 years) are exempt from tax on income up to ₹5 lakhs. Income between ₹2.5 lakhs and ₹5 lakhs for individuals and corresponding brackets for senior citizens is taxed at up to 5%, depending on their age group. Income between ₹5 lakhs and ₹10 lakhs is taxed at 20%, and income exceeding ₹10 lakhs is taxed at 30%. Determining your tax liability is straightforward using an income tax calculator or by seeking assistance from a tax professional.

***Note: Health & Education cess @ 4% to be paid on the amount of income tax plus Surcharge (if any) in both the regimes.

Tax slabs for domestic company for AY 2025-26

The updated income tax rates for domestic companies have been set, reflecting efforts to support business growth and economic stability within India. These rates are critical for companies to understand as they plan their financial strategies and fulfill their tax obligations effectively.

Condition	Income Tax Rate (excluding surcharge and cess)
Total Turnover or Gross Receipts during the previous year 2020-21 does not exceed Rs. 400 crores	25%
If opted for Section 115BA	25%
If opted for Section 115BAA	22%
If opted for Section 115BAB	15%
Any other Domestic Company	30%

Surcharge, marginal relief, and health & education cess

What is surcharge?

Surcharge is an additional tax levied on individuals earning above certain income thresholds. It is calculated as a percentage of the income tax determined based on applicable tax rates.

7% on taxable income above Rs. 1 crore and up to Rs. 10 crore
12% on taxable income above Rs. 10 crore
10% for companies opting for taxability under Section 115BAA or Section 115BAB

What is Marginal Relief?

Marginal Relief is a mechanism that limits the surcharge payable. If the surcharge amount exceeds the additional income earned that triggers the surcharge liability, the surcharge payable is capped at the amount of that additional income.

For income exceeding Rs. 1 crore: Surcharge cannot exceed the amount of income earned above Rs. 1 crore.
For income exceeding Rs. 10 crore: Surcharge cannot exceed the amount of income earned above Rs. 10 crore.

What is Health and Education Cess?

Health and Education Cess is a 4% cess levied on the total income tax amount, including any applicable surcharge.

Notes:

Minimum Alternate Tax (MAT): Companies are liable to pay MAT at 15% of their book profit (plus surcharge and Health & Education Cess) if their normal tax liability is less than 15% of their book profit.
MAT for International Financial Services Centre (IFSC) Units: IFSC units deriving income solely in convertible foreign exchange are liable to pay MAT at 9% (plus cess and surcharge).
Companies opting for special rate taxation under Sections 115BAA and 115BAB are exempt from MAT.
Companies opting for special rate taxation under Sections 115BAA or 115BAB are not allowed certain deductions, except for deductions under Sections 80JJAA and 80M.

Income tax rate for partnership firm or LLP as per old/new regime

For Partnership Firm and LLP, the income tax rate is 30% on net profit. Surcharge is levied at 12.5% if income exceeds Rs. 1 crore. Additionally, a 4% Health & Education Cess is applicable. Minimum Alternate Tax (MAT) is 18.5% of adjusted total income.

Income tax rate for foreign company under new income tax regime

Foreign companies operating in India are subject to specific income tax rates, which are generally structured to align with international standards and foster a favorable investment climate. These rates are crucial for multinational corporations to understand, as they impact financial planning and compliance with Indian tax regulations.

Nature of Income	Tax Rate
Royalty received from the Government or an Indian concern according to an agreement post-March 31, 1961, but before April 1, 1976; or fees for technical services from an agreement post-February 29, 1964, but before April 1, 1976, approved by the Central Government	50%
Any other income	40%

Additional Notes:

Surcharge: Imposed based on total income levels:
Rs. 1 Crore to 10 Crores: 2%
Above Rs. 10 Crore: 5%
Health & Education Cess: 4% on the total tax.
MAT (Minimum Alternate Tax): Applicable as per section 115JB.

For individuals, Hindu Undivided Families (HUF), and Non-Resident Indians (NRIs) below the age of 60, the income tax exemption limit is set at a maximum of Rs 2,50,000. This means that any income earned within this threshold will not be subject to income tax.

However, it is essential to note that surcharge and cess will still be applicable on the tax amount. These additional charges are discussed separately.

Furthermore, an additional 4% Health & Education Cess will be levied on the total tax and surcharge amount. This cess is a further contribution towards the country's healthcare and education initiatives.

Income Slabs	Individuals of Age < 60 Years and NRIs
Up to Rs 2,50,000	NIL
Rs 2,50,001 - Rs 5,00,000	5%
Rs 5,00,001 to Rs 10,00,000	20%
Rs 10,00,001 and above	30%

Conditions for Opting for the New Tax Regime

Taxpayers choosing the new regime will forego certain deductions and exemptions available under the old regime.

Common Deductions & Exemptions Not Allowed:

Leave Travel Allowance (LTA)
Conveyance AllowanceHouse Rent Allowance (HRA)
Relocation Allowance
Children Education Allowance
Professional TaxDaily Expenses in the Course of Employment
Helper Allowance
Deductions under Chapter VI-A (e.g., 80C, 80D, 80E), except for Section 80CCD(2)
Standard Deduction on Salary
Interest on Housing Loan (Section 24)
Other Special Allowances (Section 10(14))

What are the Exemptions/Deductions unavailable under the new tax regime in FY 24-25?

The 2020 budget significantly revised the tax structure by removing approximately 70 of the 100 exemptions previously available under the new tax regime. Opting for the new income tax brackets 24-25 for tax calculation means foregoing several critical exemptions and deductions, including:

House Rent Allowance (HRA): Previously deductible under Section 10 (13A), this allowance helped employees reduce taxable income by the amount paid for rented accommodation.
Leave Travel Allowance (LTA): Section 10(5) provided a deduction for expenses on travel while on leave, which is no longer available under the new regime.
Specific Allowances: Allowances exempt under Section 10(14), including conveyance and children's education allowance, are not deductible in the new tax regime.
Tax-Free Perquisites: Benefits such as food coupons and other tax-free allowances that were exempt from tax will now be included in taxable income.
Chapter VI A Deductions: Significant deductions like those under Section 80C (investments), 80D (medical insurance), 80TTA (savings interest), etc., are not available.
Home Loan Interest Deduction: The deduction for interest paid on home loans for self-occupied property under Sections 24(b) and Section 80EEA will no longer reduce taxable income in the new regime.

What Exemptions/Deductions are Available under the New Tax Regime in FY 24-25?

Under the new income tax brackets 24-25, taxpayers can still avail of certain deductions and exemptions, despite the removal of many previously available ones. These include:

NPS Contributions by Employer: Contributions to the National Pension System (NPS) by an employer, up to 10% of the salary of the employee (and 14% for Central Government employees), are deductible under Section 80CCD(2).
Standard Deduction on Rental Income: For rented-out property, a standard deduction of 30% of the net rental income is allowed, simplifying the calculation of taxable income from house property.
Home Loan Interest: Interest paid on a home loan for a let-out property can be deducted from the rental income earned, although a loss from house property cannot be offset against other income heads.
Transport Allowance for Divyang Employees: Divyang (disabled) employees are eligible for a transport allowance exemption to cover daily travel expenses between their workplace and home.
Conveyance Allowance: Expenses incurred on conveyance for official duties are permissible as a conveyance allowance.
Allowances for Travel and Transfer: Allowances provided to employees for the costs associated with travel on tour or transfer are exempt.
Daily Allowance: A daily allowance received to cover ordinary day-to-day expenses while away from the normal place of duty is also allowed.

Deductions: Old Tax Regime vs. New Tax Regime (Section 115BAC) for FY 2024-25

This table outlines the key differences in available deductions between the Old Tax Regime and the New Tax Regime (Section 115BAC) for the financial year 2024-25.

Deduction/Exemption	Old Regime	New Regime (Section 115BAC)
Section 80C (Investment in PPF, NSC, Life Insurance Premium, ELSS, etc.)	Available up to Rs. 1.5 lakh	Not available
Section 80D (Health insurance premium)	Available	Not available
Standard Deduction (for salaried individuals)	Rs. 50,000	Rs. 75,000 (FY 2024-25) and Rs. 50,000 (FY 2023-24)
House Rent Allowance (HRA)	Available (based on actuals)	Not available
Leave Travel Allowance (LTA)	Available	Not available
Interest on Housing Loan (Section 24) (for self-occupied property)	Deduction up to Rs. 2 lakh	Not available
Section 80E (Interest on education loan)	Available	Not available
Section 80G (Donations to charitable institutions)	Available	Not available

Benefits and drawbacks of New Tax Regime

Choosing between India's new and old tax regimes involves weighing their respective advantages and disadvantages against your financial habits, income level, and investment strategy. Here's a breakdown to help guide your decision:

Benefits of the New Tax Regime:

Simplified Tax Process: With fewer deductions and exemptions, the new regime streamlines tax filing, benefiting those overwhelmed by the complexity of the old regime.
Reduced Tax Rates: For individuals earning up to Rs. 7 lakhs, the new regime often provides lower tax rates, potentially increasing your net income.
Tax Rebate Advantage: Earnings up to Rs. 7 lakhs qualify for a full tax rebate, resulting in zero tax liability under the new regime.
Enhanced Liquidity: The absence of compulsory tax-saving investments increases available cash for other financial purposes.

Drawbacks of the New Tax Regime:

Loss of Deductions and Exemptions: Opting for the new regime means missing out on several key deductions and exemptions (e.g., HRA, LTA), which could raise your taxable income.
Reduced Financial Planning Flexibility: The elimination of deductions limits opportunities to strategically lower your tax obligations through targeted investments and expenditures.
Potentially Higher Taxes for Higher Earners: Individuals with incomes over Rs. 10 lakhs might find themselves subject to higher taxes under the new regime, especially when including surcharges on incomes above Rs. 5 crores.
Disadvantages for Long-Term Savers: The new regime may not suit those who depend on tax-saving investments for wealth accumulation, as it excludes these benefits.

Additional Considerations:

Regime Switching Flexibility: Taxpayers have the annual option to choose between regimes at tax filing, offering a chance to adjust as financial circumstances change.
Careful Comparison is Key: Evaluating your tax obligations under both regimes can clarify which option minimises your tax liability, with tools like online tax calculators providing assistance.
Plan According to Future Financial Goals: Consider potential income growth and investment objectives in your regime choice.
Seek Professional Advice: A tax advisor can offer tailored recommendations, ensuring your tax strategy aligns with your overall financial landscape.

How to Calculate Income Tax for Income Tax Slabs for FY 24-25 (AY 2025-26)

To illustrate the process of income tax calculation, let's take the example of Anjali, a salaried individual with an annual income of Rs. 9,00,000. Anjali is eligible for deductions under Section 80C amounting to Rs. 2,00,000. The calculation of her income tax involves a few key steps:

1. Calculating Gross Taxable Income

Anjali's gross taxable income is determined by subtracting the eligible deductions from her total income. This calculation is as follows:

Total annual income: Rs. 9,00,000Less
deductions under Section 80C: Rs. 2,00,000
Gross taxable income: Rs. 9,00,000 - Rs. 2,00,000 = Rs. 7,00,000

With a gross taxable income of Rs. 7,00,000, the next step is to apply the appropriate tax slabs.

2. Understanding the Applicable Tax Slabs

The income tax rates for the financial year 2023-24 are structured as follows:

Up to Rs. 2,50,000: 0% (no tax)
Rs. 2,50,001 to Rs. 5,00,000: 5%
Rs. 5,00,001 to Rs. 10,00,000: 20%
Above Rs. 10,00,000: 30%

Anjali's gross taxable income of Rs. 7,00,000 falls within the Rs. 5,00,001 to Rs. 10,00,000 range, meaning the applicable tax rate is 20% for the amount exceeding Rs. 5,00,000.

3. Calculating the Income Tax

To calculate Anjali's income tax liability:

The first Rs. 2,50,000 of her income is tax-free.
The next Rs. 2,50,000 (from Rs. 2,50,001 to Rs. 5,00,000) is taxed at 5%, resulting in a tax of Rs. 12,500 (5% of Rs. 2,50,000).
The remaining Rs. 2,00,000 (from Rs. 5,00,001 to Rs. 7,00,000) is taxed at 20%, amounting to Rs. 40,000 (20% of Rs. 2,00,000).

The total tax liability is thus Rs. 12,500 + Rs. 40,000 = Rs. 52,500.

4. Consideration of Surcharge and Rebate

Since Anjali's income does not exceed Rs. 50 lakhs, no surcharge applies. Additionally, she is not eligible for the Section 87A rebate, as her taxable income is above Rs. 5,00,000.

Therefore, for the financial year 2023-24, Anjali’s total income tax liability amounts to Rs. 52,500.

How to calculate income tax liability under old tax regime?

Calculating income tax liability under the old tax regime involves understanding the income tax slabs, deductions, and exemptions applicable for the financial year. The old tax regime allows taxpayers to claim various deductions, such as those under Section 80C, HRA, and standard deductions, which help reduce the taxable income. Here’s a step-by-step guide on calculating income tax liability under the old tax regime.

1. Determine Gross Total Income

Gross total income is the sum of all income sources, including salary, house property, capital gains, business or profession, and other sources like interest income. This forms the basis for further calculations.

2. Apply Deductions and Exemptions

Deductions such as Section 80C (investments in ELSS, PPF, etc.), Section 80D (medical insurance), and others can be claimed. Common exemptions include House Rent Allowance (HRA), Leave Travel Allowance (LTA), and the standard deduction of Rs. 50,000. Subtract these from the gross total income to calculate the net taxable income.

3. Identify the Applicable Tax Slabs

The old tax regime has different slabs based on the taxpayer’s age group:

Individuals below 60 years
Senior citizens (60-79 years)
Super senior citizens (80 years and above).

Surcharge on income tax

A surcharge on income tax is an additional charge levied on the tax liability of individuals and entities whose income exceeds specified thresholds. It is calculated as a percentage of the total income tax payable and aims to increase tax revenues from high-income earners. The surcharge rates vary depending on the income level, with higher rates applying to larger incomes. This mechanism ensures a progressive tax structure where those with higher earnings contribute a larger share to the tax pool.

1. Surcharge Rates for Individual Taxpayers

For individuals, the surcharge rates are based on income brackets:

Income between Rs. 50 lakh and Rs. 1 crore attracts a surcharge of 10%.
Income above Rs. 1 crore but up to Rs. 2 crore is subject to a 15% surcharge.
For income exceeding Rs. 2 crore but below Rs. 5 crore, the surcharge is 25%.
Income above Rs. 5 crore incurs the highest surcharge rate of 37%.

However, under the new tax regime, the highest surcharge rate is capped at 25%, even for incomes above Rs. 5 crore. This cap aims to limit the tax burden on ultra-high-income earners while maintaining a progressive tax system.

2. Surcharge Applicability for Other Taxpayers

Apart from individuals, the surcharge is also applicable to companies and other entities. For domestic companies, the surcharge is 7% if the income exceeds Rs. 1 crore but is less than Rs. 10 crore. A 12% surcharge applies if the income surpasses Rs. 10 crore. Foreign companies face different surcharge rates, with 2% for income between Rs. 1 crore and Rs. 10 crore, and 5% for income above Rs. 10 crore. This graded approach to surcharge rates helps ensure that higher-income entities contribute a fair share to the tax revenue.

Tips for Choosing Between the Old and New Income Tax Regimes

When choosing between the old and new income tax regimes, taxpayers should carefully evaluate their specific circumstances to determine which option is more beneficial. Here are five tips to help in the decision-making process:

Calculate your taxable income: Estimate your total income and subtract available deductions and exemptions to determine your taxable income under both regimes. This will help you compare the tax liability under each regime.
Consider your ability to claim deductions: If you can claim significant deductions under Section 80C, 80D, and other sections, the old regime may be more advantageous as it allows you to reduce your taxable income. However, if you cannot claim substantial deductions, the new regime may be more suitable.
Understand the impact of forfeiting deductions: Opting for the new regime means forfeiting several deductions and exemptions available in the old regime, such as HRA, standard deduction, and deductions under Sections 80C, 80D, and 80TTA. Evaluate how this will affect your overall tax liability.
Factor in future plans: Consider your long-term financial goals and plans, such as investing in tax-saving instruments or claiming deductions for medical expenses. The old regime may be more beneficial if you anticipate needing these deductions in the future.
Consult with a tax professional: Seek guidance from a tax professional who can help you analyze your specific situation, consider future plans, and provide personalized advice on which regime is more suitable for you.

By carefully considering these factors and seeking professional advice, taxpayers can make an informed decision between the old and new income tax regimes and optimize their tax savings.

Different types of Taxable Income in India

In India, various sources of income are subject to taxation. Understanding the different types of taxable income is crucial for accurate tax filing and compliance.

Taxable income sources in India include:

Business Income
Business income refers to profits earned from business activities, including self-employment, consultancy, or any commercial venture. This income is taxable under the Income Tax Act and is subject to applicable tax rates based on the nature of the business.
Salary or Pension
Income earned as salary or pension from employment is a common taxable income source. This includes basic salary, allowances, bonuses, and other perks received by individuals working in various sectors. Pension income received after retirement is also taxable.
Property Income
Income generated from property ownership, such as rental income from letting out residential or commercial properties, is taxable. Additionally, income from house property, including deemed rental income from self-occupied property, falls under this category.
Capital Gains Income
Capital gains arise from the sale of capital assets like stocks, real estate, or mutual funds. These gains can be categorised as short-term or long-term based on the holding period of the asset. Capital gains tax is applicable as per the prevailing tax laws.
Lottery, Races, and More Income
Income from sources like lotteries, horse races, card games, gambling, or any other speculative activities is considered taxable. Such income falls under the category of 'Income from Other Sources' and is subject to taxation at applicable rates.

Understanding the various taxable income sources is essential for taxpayers to accurately report their income, claim deductions, and comply with tax regulations. Proper documentation and adherence to tax laws can help individuals manage their tax liabilities effectively and avoid any penalties or legal issues related to tax evasion.

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Tax benefits of ELSS funds in budget 2026

Equity Linked Savings Scheme (ELSS) funds remain a widely-used investment choice for salaried individuals and self-employed persons, since they combine equity-market exposure with a tax-saving benefit. Under Income Tax Act, 1961 they are eligible for deductions under Section 80C.

In Budget 2026, Equity Linked Savings Schemes (ELSS) continue to offer tax benefits under the Old Tax Regime, allowing deductions of up to Rs. 1.5 lakh under Section 80C. While the industry has requested a separate deduction for ELSS in the New Tax Regime, it currently does not provide these deductions under the new, default tax structure.

How to know which income tax slab you fall in?

To determine which income tax slab you fall into in India as of 2024, you need to assess your annual income and choose between the old and new tax regimes. Each regime has different rates and benefits.

Old Tax Regime

Deductions and Exemptions: This regime allows for various deductions and exemptions, such as those under Section 80C (investments in PPF, life insurance, etc.), 80D (medical insurance), and others.
Tax Slabs:
- Income up to Rs. 2.5 lakh: Nil
- Income between Rs. 2.5 lakh and Rs. 5 lakh: 5%
- Income between Rs. 5 lakh and Rs. 10 lakh: 20%
- Income above Rs. 10 lakh: 30%
Additional Considerations: Standard deductions, House Rent Allowance (HRA), and Leave Travel Allowance (LTA) can further reduce taxable income.

New Tax Regime

Limited Deductions: This regime offers lower tax rates but with limited deductions and exemptions.
Tax Slabs:·
- Rs. 0- Rs. 3 lakh - Nil: If your annual income is between Rs. zero and Rs. 300,000, you don't pay any income tax.
- Rs. 3-7 lakh - 5%: If your income is between Rs. 300,001 and Rs. 700,000, you pay 5% tax on the amount exceeding Rs. 300,000.
- Rs. 7-10 lakh - 10%: If your income is between Rs. 700,001 and Rs. 1,000,000, you pay 10% tax on the amount exceeding Rs. 700,000.
- Rs. 10-12 lakh - 15%: If your income is between Rs. 1,000,001 and Rs. 1,200,000, you pay 15% tax on the amount exceeding Rs. 1,000,000.
- 12-15 lakh - 20%: If your income is between Rs. 1,200,001 and Rs. 1,500,000, you pay 20% tax on the amount exceeding Rs. 1,200,000.
- Above Rs. 15 lakh - 30%: If your income is above Rs. 1,500,000, you pay 30% tax on the amount exceeding Rs. 1,500,000.

TaxRebate: A rebate under Section 87A is available for individuals earning up to Rs. 7 lakh, resulting in no tax liability.

Key Differences:

Deductions: The primary difference lies in the availability of deductions and exemptions. The old regime allows for a wider range, while the new regime has limited options.
Tax Rates: The new regime generally offers lower tax rates compared to the old regime.
Simplicity: The new regime is simpler to calculate as it doesn't involve multiple deductions and exemptions.

Choosing the Right Regime:

Individuals need to carefully assess their financial situation and tax liabilities to determine which regime is more beneficial for them. Factors to consider include income level, available deductions, and investment patterns. It's advisable to consult with a tax professional or financial advisor for personalized guidance.

Conclusion

In conclusion, understanding the income tax slabs for the financial year 2024-25 in both the new and old tax regimes provides individuals with valuable insights into their tax obligations. The choice between the new and old regimes hinges on various factors such as income levels, available deductions, and personal financial goals. While the new regime offers lower tax rates with fewer deductions, the old regime provides a more traditional approach with higher tax rates but allows for a broader range of deductions. Ultimately, taxpayers must evaluate their unique circumstances and preferences to make informed decisions regarding which tax regime aligns best with their financial objectives. Regardless of the chosen regime, staying informed about the prevailing tax regulations remains essential for effective tax planning and compliance.

Frequently asked questions