Income Tax Slab for FY 2024-25 & AY 2025-26 (New & Old Regime Tax Rates)

What is an Income Tax Slab?

In India, the Income Tax applies to individuals based on a slab system, where different tax rates are assigned to different income ranges. As the person’s income increases, the tax rates also increase. This type of taxation allows for a fair and progressive tax system in the country. The income tax slabs are revised periodically, typically during each budget. With the upcoming Budget 2025, there are many expectations for changes in tax slabs to further adjust for current economic conditions.

Income Tax Slabs 2025-26 Budget 2025 Live Updates:

Under the newly announced tax slabs under the new regime, no income tax will be payable on annual income of up to Rs 12,00,000. For salaried individuals opting for the new tax regime, income of up to Rs 12,75,000 will be tax-free. Section 87A rebate has been increased to 60,000. FM Sitharaman presented her 8th consecutive budget 2025-26 today.

tax.

નવા ઇન્કમટેકસ કેલક્યુલેટર માટે અહિં કલીક કરો

ઇન્કમ ટેક્સ ગણતરી માટે એપ ડાવુનલોડ કરવા માટે અહી ક્લિક કરો

ફોર્મ નં ૧૬ જનરેટ કરવા અને ઈન્કમ ટેકસ ગણતરી કરવા માટે એપ ડાવુનલોડ કરવા માટે અહી ક્લિક કરો 

Budget 2025 Income Tax Live Updates: The middle class was hoping for a favorable change in the income tax slabs ahead of the Union Budget 2025-26, and they were not disappointed.

Oplus_131104No Income payable on income of up to Rs 12,00,000 in the new tax regime
Here is how the new (proposed) tax regime will now look like:
Zero to Rs 4,00,000- No Tax
Rs 4,00,000 to Rs 8,00,000—5%
Rs 8,00,0001 to Rs 12,00,000—10%
Rs 12,00,001 to Rs16 lakh–15%
Rs 16,00,001 to Rs 20 lakh–20%
Rs 20,00,001 to Rs 24 lakh– 25%
Above 24 lakh—30%

Income Tax Slabs 2025 Live: New Tax Regime vs Old Tax Regime
Income Tax Slabs for AY 2025-26: Under the old tax regime, there is no income tax on annual incomes up to Rs 2,50,000. Between Rs.2,50,001 and Rs 5,00,000, a 5% tax is applicable. Between Rs 5,00,001 to Rs 10,00,000 a 20% tax rate is levied. Over Rs 10,00,000 i.e. from Rs 10,00,001 and above, a 30% rate is applicable.

Under the new tax regime (existing)), there is no income tax levied on annual income of up to Rs. 3,00,000. Between Rs. 3,00,001 to Rs. 7,00,000, a 5% tax is levied.
From Rs. 7,00,001 to Rs. 10,00,000, a 10% tax is levied. From Rs. 10,00,001 to Rs. 12,00,000, a 15% tax is applicable. From Rs. 12,00,001 to Rs. 15,00,000, a tax rate of 20% is applied. Above Rs. 15,00,000, a 30% tax rate is applicable.

Union Budget 2025-26: Date and Time of presentation
FM Nirmala SItharaman will present the Union Budget 2025-26 today i.e. Saturday, February 1, 2025 at 11 am in the Lok Sabha.

Old and new income tax regime in budget 2025: Hike in standard deduction limits possible?
Taxpayers are hoping for a hike in the standard deduction limit under both tax regimes. Currently, the old tax regime offers a standard deduction of Rs 50,000. Under the new tax regime, taxpayers can claim a standard deduction of up to Rs 75,000. However, taxpayers are also demanding more exemptions and deductions under the new tax regime.

Hike in Section 87A rebate on the cards in budget announcement?
Post Budget 2025-26, the Section 87A rebate under the new tax regime has been increased from Rs 25,000 to Rs 60,000