Income Tax Slabs
FY 2025-26 Complete Guide
New regime and old regime slab rates, surcharge, cess, 87A rebate, and worked examples for every income level. ITR filing season: July 31, 2026.
◆ ZERO TAX — New Regime FY 2025-26
Section 87A provides a tax rebate of ₹60,000 for total income up to ₹12,00,000. Combined with ₹75,000 standard deduction for salaried/pensioners, effective zero tax up to ₹12,75,000 salary income.
| Income Slab | Tax Rate | Tax on Slab | Cumulative Tax |
|---|---|---|---|
| Up to ₹4,00,000 | NIL | ₹0 | ₹0 |
| ₹4,00,001 – ₹8,00,000 | 5% | ₹20,000 | ₹20,000 |
| ₹8,00,001 – ₹12,00,000 | 10% | ₹40,000 | ₹60,000 |
| ₹12,00,001 – ₹16,00,000 | 15% | ₹60,000 | ₹1,20,000 |
| ₹16,00,001 – ₹20,00,000 | 20% | ₹80,000 | ₹2,00,000 |
| ₹20,00,001 – ₹24,00,000 | 25% | ₹1,00,000 | ₹3,00,000 |
| Above ₹24,00,000 | 30% | 30% on excess | ₹3,00,000 + 30% |
| 87A Rebate (income ≤ ₹12L) | −₹60,000 (full tax) | ₹0 net tax | |
◆ Standard Deduction — New Regime
₹75,000 standard deduction available for salaried employees and pensioners. This is deducted from gross salary before applying slabs. Net result: zero tax up to ₹12,75,000 gross salary.
Quick Tax Reference — New Regime
| Annual Income | Taxable Income (after ₹75K SD) | Tax (before cess) | Tax + 4% Cess | Effective Rate |
|---|---|---|---|---|
| ₹5,00,000 | ₹4,25,000 | ₹1,250 (rebate: NIL) | ₹0 | 0.0% |
| ₹7,50,000 | ₹6,75,000 | ₹13,750 (rebate: NIL) | ₹0 | 0.0% |
| ₹10,00,000 | ₹9,25,000 | ₹12,500 (rebate: NIL) | ₹0 | 0.0% |
| ₹12,75,000 | ₹12,00,000 | ₹60,000 − ₹60,000 rebate | ₹0 | 0.0% |
| ₹15,00,000 | ₹14,25,000 | ₹1,33,750 | ₹1,39,100 | 9.3% |
| ₹20,00,000 | ₹19,25,000 | ₹2,93,750 | ₹3,05,500 | 15.3% |
| ₹30,00,000 | ₹29,25,000 | ₹5,67,500 | ₹5,90,200 | 19.7% |
| ₹50,00,000 | ₹49,25,000 | ₹11,77,500 | ₹12,24,600 | 24.5% |
◆ OLD REGIME — For Taxpayers with High Deductions
Old regime is beneficial only if your total deductions (80C + HRA + Home Loan + 80D + others) exceed approximately ₹3.75–5 lakh. Standard deduction is ₹50,000 under old regime.
| Income Slab | Individual (<60 yrs) | Senior Citizen (60–80) | Super Senior (80+) |
|---|---|---|---|
| Up to ₹2,50,000 | NIL | — | |
| Up to ₹3,00,000 | — | NIL | — |
| Up to ₹5,00,000 | — | — | NIL |
| ₹2,50,001 – ₹5,00,000 | 5% | 5% (above 3L) | NIL |
| ₹5,00,001 – ₹10,00,000 | 20% | 20% | 20% |
| Above ₹10,00,000 | 30% | 30% | 30% |
| 87A Rebate: ₹12,500 if total income ≤ ₹5,00,000 | Standard Deduction: ₹50,000 (salaried/pensioners) | |||
Deductions Available — Old Regime
| Section | Nature | Limit |
|---|---|---|
| 80C | PF, PPF, ELSS, LIC, NSC, Tuition Fees, Home Loan Principal | ₹1,50,000 |
| 80CCD(1B) | NPS (additional over 80C) | ₹50,000 |
| 80D | Health insurance premium (self + family + parents) | ₹25,000–₹1,00,000 |
| 80E | Education loan interest | No limit (actual interest for 8 years) |
| 80EEA | Home loan interest (affordable housing) | ₹1,50,000 (additional) |
| 80G | Donations to approved institutions | 50% or 100% of donation |
| 80GG | House rent (for those not getting HRA) | ₹5,000/month or 25% of income |
| 80TTA | Savings bank account interest | ₹10,000 (₹50,000 for seniors — 80TTB) |
| Section 24B | Home loan interest (self-occupied) | ₹2,00,000 |
| Section 10(13A) | HRA exemption | Actual as per formula |
| LTA (10(5)) | Leave travel allowance | Actual (twice in 4-year block) |
Surcharge is levied on income tax (not income) for high earners. Health & Education Cess at 4% applies on (tax + surcharge) for everyone.
| Total Income | New Regime Surcharge | Old Regime Surcharge |
|---|---|---|
| Up to ₹50,00,000 | NIL | NIL |
| ₹50,00,001 – ₹1,00,00,000 | 10% | 10% |
| ₹1,00,00,001 – ₹2,00,00,000 | 15% | 15% |
| ₹2,00,00,001 – ₹5,00,00,000 | 25% | 25% |
| Above ₹5,00,00,000 | 25% (CAPPED) | 37% |
◆ Marginal Relief on Surcharge
Marginal relief ensures that the increase in tax due to surcharge does not exceed the income exceeding the threshold. For example, if income is ₹50,10,000, surcharge is limited so additional tax does not exceed ₹10,000 (the excess over ₹50L).
Health & Education Cess
4% cess applies to all taxpayers on (income tax + surcharge). It replaces the earlier 2% Education Cess + 1% Secondary & Higher Education Cess. There is no threshold — cess applies even when income is ₹0 tax (if surcharge applies separately).
Total Tax = (Income Tax + Surcharge) × 1.04
AMT / MAT — Alternate Minimum Tax
Alternative Minimum Tax (AMT) applies at 18.5% on adjusted total income for non-corporate taxpayers who claim certain deductions (80IA, 80-IC, 80-IB, etc.) and whose regular tax is lower. Most individual salary earners are NOT affected by AMT.
Worked examples for common income levels. All examples for salaried individuals.
Key Changes in Income Tax — Budget 2025
The Union Budget 2025 (presented February 1, 2025) introduced the most significant income tax reform in years:
- New regime is now DEFAULT — Taxpayers must actively opt for Old Regime
- Zero tax up to ₹12 lakh via enhanced 87A rebate (₹60,000 vs ₹25,000 earlier)
- Revised slabs — Nil slab extended to ₹4L, new 25% slab added
- Standard deduction ₹75,000 — increased from ₹50,000 (effective ₹12.75L zero-tax)
- Old regime unchanged — Still beneficial for those with home loans, HRA, heavy 80C investments
ITR Filing Due Date — FY 2025-26
The deadline to file Income Tax Return for FY 2025-26 (AY 2026-27) is July 31, 2026 for non-audit cases. Audit cases: October 31, 2026. Late filing fee: ₹1,000 (income ≤ ₹5L) or ₹5,000 (others) under Section 234F.
Frequently Asked Questions
Not sure which regime is better for you?
Get your regime compared and your ITR filed accurately by a CA.
Disclaimer: Slab rates and thresholds per Finance Act 2025. Figures are indicative for individual residents; actual tax may vary with exemptions, capital gains and special-rate income.
- Open the New Tax Regime tab to see the seven revised slabs and the 87A rebate.
- Switch to the Old Tax Regime tab for old slabs and the list of available deductions.
- Use the Surcharge and Cess tab to check high-income surcharge and the 4% cess.
- Open the Worked Examples tab to see full computations for ₹10L, ₹20L and ₹50L incomes.
What are the New Regime slabs for FY 2025-26?
Up to ₹4L is nil, ₹4L to ₹8L is 5%, ₹8L to ₹12L is 10%, ₹12L to ₹16L is 15%, ₹16L to ₹20L is 20%, ₹20L to ₹24L is 25%, and above ₹24L is 30%.
How is tax zero up to ₹12.75L?
Salaried taxpayers get a ₹75,000 standard deduction, which brings ₹12.75L salary down to ₹12L. The Section 87A rebate of ₹60,000 then wipes out the tax on income up to ₹12L.
What are the Old Regime slabs?
Up to ₹2.5L is nil, ₹2.5L to ₹5L is 5%, ₹5L to ₹10L is 20%, and above ₹10L is 30%. The nil limit is ₹3L for senior citizens and ₹5L for super seniors.
When does surcharge apply?
Surcharge applies once income crosses ₹50L: 10% up to ₹1Cr, 15% up to ₹2Cr, and 25% above that. The Old Regime can go up to 37%, while the New Regime is capped at 25%.
Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.