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Difference Between Businessman and Entrepreneur: Example, Meaning
Income tax is a direct tax which follows a progressive slab system, where tax rates increase with higher income. The taxpayers can choose between the old regime, which offers deductions and exemptions, and the new regime, which offers lower tax rates but without deductions and exemptions. In this article, we will explore the different slabs under both the old and new regimes and help you understand which one is more beneficial for you.
Income Tax Slabs for FY 2025-26 (AY 2026-27)
Under the Budget 2025, individuals with income up to Rs. 12,00,000 will have zero tax liability for the FY 2025-26 (AY 2026-27) under the new tax regime. Here's how:
The revised tax slabs are as follows:
Annual Income Tax Slabs | Income Tax Rates |
Upto Rs.4,00,000 | NIL |
Rs.4,00,001 - Rs.8,00,000 | 5% |
Rs.8,00,001 - Rs.12,00,000 | 10% |
Rs.12,00,001 - Rs.16,00,000 | 15% |
Rs.16,00,001 - Rs.20,00,000 | 20% |
Rs.20,00,001 - Rs.24,00,000 | 25% |
Above Rs.24,00,000 | 30% |
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About the Author
Mayashree Acharya
I am an advocate by profession and write articles on legal and business topics. I am happy to interpret legal and business topics and put them in simple and easy-to-understand content. Apart from writing, I like to explore new places and try new things in life.. Read more
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