*Key Changes in Income Tax Slabs under New Tax Regime for Financial Year 2025-26 (Assessment Year 2026-27)*
Income up to ₹4,00,000 – No tax (previously ₹3,00,000).
₹4,00,001 to ₹8,00,000 – 5% tax.
₹8,00,001 to ₹12,00,000 – 10% tax.
₹12,00,001 to ₹16,00,000 – 15% tax.
₹16,00,001 to ₹20,00,000 – 20% tax.
₹20,00,001 to ₹24,00,000 – 25% tax (new slab introduced).
Above ₹24,00,000 – 30% tax.
*Additional Points*
The basic exemption limit has been raised from ₹3 to ₹4 lakh, providing greater tax relief for lower-income groups.
A new 25% tax slab has been introduced for income between ₹20 and ₹24 lakh.
The tax rebate under Section 87A has been expanded to cover incomes up to ₹12 lakh, effectively making tax liability zero for incomes up to this limit.
The highest surcharge rate has been capped at 25%.
The new tax regime remains the default tax regime, with fewer deductions allowed, making it more beneficial for those with few exemptions to claim.
Salaried and pensioned individuals get an enhanced standard deduction of ₹75,000.
These changes simplify the tax structure, reduce tax burden on many taxpayers and make the new regime more attractive , relative to the old regime.
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