Last Updated: June 2026 — This page reflects the income tax slabs as revised under the Union Budget 2025 for Financial Year 2025-26 (Assessment Year 2026-27). The New Tax Regime has been made more attractive with revised slabs and a higher Section 87A rebate of Rs. 60,000, effectively making income up to Rs. 12 lakh tax-free.
New Tax Regime Slabs – FY 2025-26 (AY 2026-27)
The New Tax Regime is the default regime from FY 2023-24 onwards. The slabs were revised in Budget 2025 and are as follows:
| Income Slab | Tax Rate (New Regime) |
|---|---|
| Up to Rs. 4,00,000 | Nil |
| Rs. 4,00,001 – Rs. 8,00,000 | 5% |
| Rs. 8,00,001 – Rs. 12,00,000 | 10% |
| Rs. 12,00,001 – Rs. 16,00,000 | 15% |
| Rs. 16,00,001 – Rs. 20,00,000 | 20% |
| Rs. 20,00,001 – Rs. 24,00,000 | 25% |
| Above Rs. 24,00,000 | 30% |
Key Benefits Under the New Regime
- Zero tax up to Rs. 12,00,000 — Section 87A rebate of Rs. 60,000 makes effective tax nil for income up to Rs. 12 lakh
- Zero tax up to Rs. 12,75,000 for salaried — Standard deduction of Rs. 75,000 adds to the benefit
- Standard Deduction of Rs. 75,000 is available (increased from Rs. 50,000 in Budget 2024)
- No need to maintain investment proofs or claim deductions
- Simpler filing process with lower compliance burden
Old Tax Regime Slabs – FY 2025-26 (AY 2026-27)
The Old Tax Regime remains unchanged and allows over 70 deductions and exemptions including 80C, 80D, HRA, LTA, and home loan interest.
| Income Slab | Tax Rate (Old Regime) |
|---|---|
| Up to Rs. 2,50,000 | Nil |
| Rs. 2,50,001 – Rs. 5,00,000 | 5% |
| Rs. 5,00,001 – Rs. 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
Note: Under Old Regime, Section 87A rebate provides zero tax for total income up to Rs. 5 lakh.
New vs Old Regime – Side-by-Side Comparison
| Feature | New Regime | Old Regime |
|---|---|---|
| Basic Exemption Limit | Rs. 4,00,000 | Rs. 2,50,000 |
| Zero Tax Limit (87A Rebate) | Up to Rs. 12,00,000 | Up to Rs. 5,00,000 |
| Standard Deduction (Salaried) | Rs. 75,000 | Rs. 50,000 |
| Section 80C Deduction | Not available | Up to Rs. 1,50,000 |
| Section 80D (Health Insurance) | Not available | Up to Rs. 25,000 |
| HRA Exemption | Not available | Available |
| Home Loan Interest (Sec 24b) | Not available | Up to Rs. 2,00,000 |
| Default Regime | Yes (from FY 2023-24) | No (must opt-in) |
Tax Slabs for Senior Citizens (Old Regime)
| Category | Age | Basic Exemption Limit |
|---|---|---|
| Senior Citizen | 60 to 80 years | Rs. 3,00,000 |
| Super Senior Citizen | Above 80 years | Rs. 5,00,000 |
Note: Under the New Regime, the basic exemption is Rs. 4,00,000 for all individuals regardless of age.
Surcharge and Cess
| Total Income | Surcharge Rate |
|---|---|
| Up to Rs. 50 lakh | Nil |
| Rs. 50 lakh – Rs. 1 crore | 10% |
| Rs. 1 crore – Rs. 2 crore | 15% |
| Rs. 2 crore – Rs. 5 crore | 25% |
| Above Rs. 5 crore | 37% (25% under New Regime) |
A 4% Health and Education Cess is applicable on income tax + surcharge for all taxpayers.
Which Tax Regime Should You Choose?
The right choice depends on your income level and investments:
- Choose New Regime if your income is up to Rs. 12.75 lakh (salaried) — you pay zero tax
- Choose New Regime if you have minimal investments or don’t want to maintain proofs
- Choose Old Regime if you have significant deductions under 80C, 80D, HRA, and home loan interest that reduce your taxable income substantially below the new regime breakeven
- Salaried individuals can switch regimes every year at the time of filing ITR
ITR Filing Last Date – FY 2025-26
| Category | Due Date |
|---|---|
| Individuals (Salaried, Non-Audit) | 31 July 2026 |
| Businesses requiring audit | 31 October 2026 |
| Belated / Revised Return | 31 December 2026 |
Need Help Filing Your ITR?
Not sure which regime suits you better? Our Chartered Accountants at IncomeTaxReturnIndia.com will calculate your tax under both regimes, pick the best option for you, and file your ITR accurately within 24 hours.