New Slab Rates for Financial Year 2025-26 [AY 2026-27]:

New Slab Rates for Financial Year 2025-26 [AY 2026-27] The Union Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26 in the parliament today. Various measures has been taken in the budget towards the development of the economy and good conditioning of the country. In the direct taxation, new slab rates has been introduced under New Tax Regime for FY25-26 [AY26-27]. One of the major input in this that now taxpayers has to pay no income tax till Rs.12 Lakh Income under New Tax Regime.

New Slab Rates for FY25-26

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%

Measures undertaken with specially focus on Middle class:

• Slabs and rates being changed across the board to benefit all taxpayers.
• New structure to substantially reduce taxes of middle class and leave more money in their hands, boosting household consumption, savings and investment.
• ‘Nil tax’ slab up to Rs.12.00 lakh (Rs.12.75 lakh for salaried tax payers with standard deduction of Rs.75,000).
• 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.
• Such rebate of income-tax is not available on tax on incomes chargeable at special rates (for e.g.: capital gains u/s 111A, 112 etc.).
• No changes in the Old Tax Regime.