The Budget 2025-26 introduces a new voluntary tax slab effective April 1, 2025, offering lower tax rates for individuals & HUF’s. However, opting for this system means giving up deductions and exemptions under the Income Tax Act, 1961.
The following are the Income Tax Slabs and Tax rates applicable for FY 2024-25 & FY 2025-26 below.
|
Existing Income Tax Slabs (New Regime FY 2024-25)
|
Tax Rate (%)
|
Proposed Income Tax Slabs (New Regime - FY 2025-26)
|
Tax Rate (%)
|
|---|---|---|---|
|
₹0-3 Lakh |
Nil |
₹0-4 Lakh |
Nil |
|
₹3 lakh - 7 lakh |
5% |
₹4 lakh - 8 lakh |
5% |
|
₹7lakh - 10 lakh |
10% |
₹8 lakh - 12 lakh |
10% |
|
₹10 lakh - 12 lakh |
15% |
₹12 lakh - 16 lakh |
15% |
|
₹12 lakh - 15 lakh |
20% |
₹16 lakh - 20 lakh |
20% |
|
₹15lakh & above |
30% |
₹20 lakh - 24 lakh |
25% |
|
|
|
₹24 lakh & above |
30% |
Note: -
1. There are no changes proposed under the Old Regime of Income Tax. To know more about the old tax slab rates Click here.
2. There are no changes in tax rates for Special Incomes like Capital Gains, etc. These rates will be applicable from F.Y. 2025-26.
3. For claiming Tax Rebate u/s 87A, the Income limit is increased from₹ 7 Lakhs to₹ 12 Lakhs. So, if a Resident Individual earns Income up-to ₹ 12 Lakhs. No Tax will be payable.
4. Please note that the Rebate is available only for the Tax payable on Income other than Special Income like Capital Gains, Winnings, etc.
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