Income Tax Slabs after Budget 2025: Changes in New Tax Regime, New vs Old Tax Regime:

Income Tax Slabs after Budget 2025: Changes in New Tax Regime, New vs Old Tax Regime Budget 2025 has brought major change in Income Tax slabs for Personal Taxation. The New Slabs applicable for Financial Year 2025-26 (Assessment Year 2026-27) are as follows: New Slabs under the New Tax Regime

0-4L	0%
4-8L	5%
8-12L	10%
12-16L	15%
16-20L	20%
20-24L	25%
Above 24L	30%

There has been no change in slabs under the Old Tax Regime: Income Tax Slabs under the Old Tax Regime

0-2.5L	0%
2.5-5L	5%
5-10L	20%
Above 10L	30%

Here is a comparison between Slabs under the New Tax Regime up to AY 2025-26 and updated slabs by Budget 2025.

Slabs under New Tax Regime
Upto AY 2025-26		Budget 2025
0-3L	0%	0-3L	0%
3-4L	5%	3-4L	0%
4-7L	5%	4-7L	5%
7-8L	10%	7-8L	5%
8-10L	10%	8-10L	10%
10-12L	15%	10-12L	10%
12-15L	20%	12-15L	15%
15-16L	30%	15-16L	15%
16-20L	30%	16-20L	20%
20-24L	30%	20-24L	25%
Above 24L	30%	Above 24L	30%

Some Analysis: Salaried Taxpayers under New Tax Regime:

• Salary Income of Rs.12,75,000 will be Tax-Free under the New Tax Regime. Salaried Taxpayers in New Tax Regime enjoy a Standard Deduction of Rs.75,000, Which means the Taxable Salary is Rs.12,00,000.
• Rebate under Section 87A increased from Rs.25000 to Rs.60,000 under New Tax Regime with annual income up to Rs.12,00,000.
• Therefore Total Tax will be Zero after the rebate.

For other than Salaried Taxpayers, Income of Rs.12,00,000 will be Tax-Free under the New Tax Regime. Once your income is more than Rs.1200000, no benefit of rebate will be available. However, you will be eligible for the benefit of marginal relief.

Income	Tax	Comments
1200000	0	Rebate of Rs.60000
1250000	50000	Tax=67500 Increase in Income=50000 An increase In Tax is more than Increase in Income, so Marginal Relief is available
1300000	75000	No Rebate Benefit
1500000	109200	No Rebate Benefit
2500000	343200	No Rebate Benefit

Here is a comparison between Slabs under the New Tax Regime up to AY 2025-26 and updated slabs by Budget 2025 and Income Tax Slabs as per the Old Tax Regime:

Old Tax Regime (No Change)		New Tax Regime (Updated Slabs)		New Tax Regime (Upto AY 2025-26)
0-2.5L	0%	0-2.5L	0%	0-2.5L	0%
2.5-3L	5%	2.5-3L	0%	2.5-3L	0%
3-4L	5%	3-4L	0%	3-4L	5%
4-5L	5%	4-5L	5%	4-5L	5%
5-7L	20%	5-7L	5%	5-7L	5%
7-8L	20%	7-8L	5%	7-8L	10%
8-10L	20%	8-10L	10%	8-10L	10%
10-12L	30%	10-12L	10%	10-12L	15%
12-15L	30%	12-15L	15%	12-15L	20%
15-16L	30%	15-16L	15%	15-16L	30%
16-20L	30%	16-20L	20%	16-20L	30%
20-24L	30%	20-24L	25%	20-24L	30%
Above 24L	30%	Above 24L	30%	Above 24L	30%

Some Analysis:

• Taxpayers with Income of up to Rs. 12,00,000 will always opt for the New Tax Regime.
• For a taxpayer with an income of Rs. 2400000, his deductions should be more than Rs. 775000, to opt for Old Tax Regime.

Analysis for Salaried Taxpayers   Taxpayers with Income of up to Rs. 12,00,000 will always opt for the New Tax Regime. For a taxpayer with a Salary income of Rs. 2400000, his deductions should be more than Rs. 800000, to opt for Old Tax Regime.