Income Tax Slabs India — FY 2025-26 (Old & New Regime)

Complete income tax slab rates for FY 2025-26. New regime vs old regime comparison. Updated for Budget 2025. Source: Finance Act 2025.

Updated: March 2025 — Finance Act 2025 (Budget, February 2025)
Under the new regime (FY 2025-26), income up to ₹12 lakh is fully tax-free due to the Section 87A rebate of ₹60,000. Most salaried taxpayers pay zero income tax under the new regime if their income is up to ₹12.75 lakh (after standard deduction of ₹75,000).

New Tax Regime Slabs — FY 2025-26 (Default)

Income RangeTax RateTax on this slab
Up to ₹4,00,0000%₹0
₹4,00,001 – ₹8,00,0005%Up to ₹20,000
₹8,00,001 – ₹12,00,00010%Up to ₹40,000
₹12,00,001 – ₹16,00,00015%Up to ₹60,000
₹16,00,001 – ₹20,00,00020%Up to ₹80,000
₹20,00,001 – ₹24,00,00025%Up to ₹1,00,000
Above ₹24,00,00030%30% on excess

Standard deduction: ₹75,000 for salaried employees. Section 87A rebate: Up to ₹60,000 if taxable income ≤ ₹12,00,000 (before rebate). Net result: zero tax up to ₹12,75,000 for salaried (after standard deduction).

Old Tax Regime Slabs — FY 2025-26

Income RangeTax RateNotes
Up to ₹2,50,0000%Basic exemption limit
₹2,50,001 – ₹5,00,0005%Section 87A rebate available
₹5,00,001 – ₹10,00,00020%—
Above ₹10,00,00030%—

Standard deduction: ₹50,000 for salaried. Senior citizens (60–79): exemption up to ₹3L. Super seniors (80+): exemption up to ₹5L. Section 87A rebate: up to ₹12,500 if income ≤ ₹5L.

Senior Citizen Higher Exemptions (Old Regime Only)

Age groupBasic exemption limit
Below 60 years₹2,50,000
Senior citizen (60–79 years)₹3,00,000
Super senior citizen (80+ years)₹5,00,000
These higher exemption limits apply only to the old tax regime. Under the new regime, the basic exemption is ₹4 lakh for all ages.

Surcharge on High Incomes

Total incomeSurcharge rate
Up to ₹50 lakh0%
₹50 lakh – ₹1 crore10%
₹1 crore – ₹2 crore15%
₹2 crore – ₹5 crore25%
Above ₹5 crore37% (capped at 15% for capital gains)

Marginal relief applies to prevent sudden jumps at surcharge thresholds. Capital gains surcharge is capped at 15%.

Health and Education Cess

4% cess is added on the total tax (including surcharge) for everyone. This applies to both old and new regimes.

Capital Gains Tax Rates — FY 2025-26

Asset TypeHolding PeriodTax RateExemption
Indian equity / equity MF — short-term< 12 months20%None
Indian equity / equity MF — long-term≥ 12 months12.5%₹1.25 lakh per year
Debt MF (purchased Apr 2023+)AnySlab rateNone
Property — short-term< 24 monthsSlab rateNone
Property — long-term (post Budget 2024)≥ 24 months12.5%No indexation
US / foreign equity — short-term< 24 monthsSlab rateNone
US / foreign equity — long-term≥ 24 monthsSlab rateNone
Crypto / VDAAny30% flatNo set-off of losses
Capital gains tax (especially STCG and LTCG) is NOT eligible for the Section 87A rebate. Even if your total income is below ₹12 lakh, capital gains are taxed at 20% or 12.5% separately.

Section 87A Rebate — FY 2025-26

RegimeIncome limitMaximum rebateNet effect
New regime₹12,00,000₹60,000Zero tax up to ₹12,75,000 (after ₹75K standard deduction)
Old regime₹5,00,000₹12,500Zero tax up to ₹5,00,000

Standard Deduction — FY 2025-26

RegimeStandard deduction
New regime (FY 2025-26)₹75,000
Old regime₹50,000

Data source and verification

These rates are sourced from the Finance Act 2025 (Union Budget, February 2025). Last verified March 2025. All figures are estimates — always verify current rates on the official Income Tax Department portal at incometax.gov.in before filing.

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