Budget 2025 has brought major change in Income Tax slabs for Personal Taxation. The New Regime Slabs applicable for FY2025-26 has been revised.
CA Pratibha Goyal | Feb 1, 2025 |
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:
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:
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.
In case of any Doubt regarding Membership you can mail us at [email protected]
Join Studycafe's WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"