Income Tax FY 2025-26 Slab Rates: New and Old Tax Regime Detailed Comparison. Indian Finance Minister has presented the Union Budget on 1st Feb 2025 and announced attractive Tax Slab Rates in New Tax Regime. Now the comparison for the Old Tax Regime and New Tax Regime in 2025 has become a must for All Citizens of India as the New Tax Regime 2025 has got much attraction. Let us see the detailed comparison of Tax Slab Rates for 2025-25 FY below.
Personal Income- tax Reforms with special focus on middle class
156. Democracy, Demography and Demand are the key support pillars in our journey towards Viksit Bharat. The middle class provides strength for India’s growth.
159. To tax payers upto ` 12 lakh of normal income (other than special rate income such as capital gains) tax rebate is being provided in addition to the benefit due to slab rate reduction in such a manner that there is no tax payable by them.
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Income Tax FY 2025-26 Slab Rates: New and Old Tax Regime Detailed Comparison
First let us see the Detailed speech of the Finance Minister on Income Tax Slab Rates 2025-26
156. Democracy, Demography and Demand are the key support pillars in our journey towards Viksit Bharat. The middle class provides strength for India’s growth.
In recognition of Middle Class contribution, we have periodically reduced their tax burden. Right after 2014, the ‘Nil tax’ slab was raised to ` 2.5 lakh, which was further raised to ` 5 lakh in 2019 and to ` 7 lakh in 2023.
This is reflective of our Government’s trust on the middle-class tax payers. I am now happy to announce that there will be no income tax payable upto income of ` 12 lakh (i.e. average income of ` 1 lakh per month other than special rate income such as capital gains) under the new regime. This limit will be ` 12.75 lakh for salaried tax payers, due to standard deduction of ` 75,000.
157. Slabs and rates are being changed across the board to benefit all tax-payers. The new structure will substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investment.
Tax Slab Rates 2025 in New Tax Regime
| Income Bracket | Tax |
|---|---|
| 0-4 lakh rupees | Nil |
| 4-8 lakh rupees | 5 per cent |
| 8-12 lakh rupees | 10 per cent |
| 12-16 lakh rupees | 15 per cent |
| 16-20 lakh rupees | 20 per cent |
| 20- 24 lakh rupees | 25 per cent |
| Above 24 lakh rupees | 30 per cent |
159. To tax payers upto ` 12 lakh of normal income (other than special rate income such as capital gains) tax rebate is being provided in addition to the benefit due to slab rate reduction in such a manner that there is no tax payable by them.
The total tax benefit of slab rate changes and rebate at different income levels can be illustrated with examples. A tax payer in the new regime with an income of ` 12 lakh will get a benefit of ` 80,000 in tax (which is 100% of tax payable as per existing rates). A person having income of ` 18 lakh will get a benefit of ` 70,000 in tax (30% of tax payable as per existing rates).
A person with an income of ` 25 lakh gets a benefit of ` 1,10,000 (25% of his tax payable as per existing rates).
A person with an income of ` 25 lakh gets a benefit of ` 1,10,000 (25% of his tax payable as per existing rates).
Rebate on income-tax
Resident individual with total income up to ` 7,00,000 do not pay any tax due to rebate under the new tax regime. It is proposed to increase the rebate for the resident individual under the new regime so that they do not pay tax if their total income is up to ` 12,00,000. Marginal relief as provided earlier under the new tax regime is also applicable for income marginally higher than ` 12,00,000.
Examples of Calculation of Income Tax Benefit
| Income | Tax on Slabs and rates | Benefit of | Rebate benefit | Total Benefit | Tax after rebate Benefit | |
| Present | Proposed | Rate /Slab | Full upto Rs 12 lacs | |||
| 8 lac | 30,000 | 20,000 | 10,000 | 20,000 | 30,000 | 0 |
| 9 lac | 40,000 | 30,000 | 10,000 | 30,000 | 40,000 | 0 |
| 10 lac | 50,000 | 40,000 | 10,000 | 40,000 | 50,000 | 0 |
| 11 lac | 65,000 | 50,000 | 15,000 | 50,000 | 65,000 | 0 |
| 12 lac | 80,000 | 60,000 | 20,000 | 60,000 | 80,000 | 0 |
| 16 lac | 1,70,000 | 1,20,000 | 50,000 | 0 | 50,000 | 1,20,000 |
| 20 lac | 2,90,000 | 2,00,000 | 90,000 | 0 | 90,000 | 2,00,000 |
| 24 lac | 4,10,000 | 3,00,000 | 1,10,000 | 0 | 1,10,000 | 3,00,000 |
| 50 lac | 11,90,000 | 10,80,000 | 1,10,000 | 0 | 1,10,000 | 10,80,000 |
Income Tax Slab Rates 2025-26 are per Old Tax Regime
| S. No | Total Income | Rate of tax |
| 1 | Where the total income does not exceed Rs. 2,50,000/-. | Nil; |
| 2 | Where the total income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-. | 5 per cent of the amount by which the total income exceeds Rs. 2,50,000/-; |
| 3 | Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-. | Rs. 12,500/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-; |
| 4 | Where the total income exceeds Rs. 10,00,000/-. | Rs. 1,12,500/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/-. |
Income Tax 2025-26 Tax Slabs Calculator
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