Income Tax Slab Rates for FY 2025-26 (AY 2026-27)
As the new financial year 2025–26 unfolds, taxpayers in India must stay informed about the latest updates in Income Tax Slab Rates. These slab rates form the foundation for determining your income tax liability and selecting the appropriate regime (Old or New). Whether you're a salaried employee, a business owner, or a senior citizen, understanding the applicable rates is crucial for effective tax planning.
This guide, brought to you by a reputed Tax Consultant Company in Delhi, breaks down the slab structures, compares both tax regimes, and provides insights to help you make informed decisions.
What Are Income Tax Slabs?
Income tax in India is structured progressively. As your income increases, the rate at which you are taxed also increases. These progressive rates are grouped into "slabs," and each financial year may see revisions in these limits or applicable rates.
" Choosing the right tax slab or regime can help you reduce your tax outgo while remaining compliant. "
Key Highlights for FY 2025–26 (AY 2026–27)
- No major changes were announced in the slab rates during the recent Budget.
- The New Tax Regime continues to be the default system unless the taxpayer opts for the Old Regime.
- The standard deduction of Rs. 50,000 is now applicable under both regimes.
- Senior citizens and super senior citizens continue to enjoy enhanced basic exemption limits under the Old Regime.
Income Tax Slab Rates Under the New Tax Regime
The New Tax Regime introduced in Budget 2020 aims to simplify the tax structure. It offers lower slab rates but removes most exemptions and deductions.
For Individuals (Below 60 Years), HUF, and NRIs:
| Income Slab | Tax Rate |
|---|---|
| Up to Rs. 3,00,000 | Nil |
| Rs. 3,00,001 – Rs. 6,00,000 | 5% |
| Rs. 6,00,001 – Rs. 9,00,000 | 10% |
| Rs. 9,00,001 – Rs. 12,00,000 | 15% |
| Rs. 12,00,001 – Rs. 15,00,000 | 20% |
| Above Rs. 15,00,000 | 30% |
Rebate: Taxpayers with income up to Rs. 7 lakh are eligible for full tax rebate under Section 87A.
" The New Regime is ideal for those who do not claim multiple deductions and prefer a simplified filing process. "
Income Tax Slab Rates Under the Old Tax Regime
The Old Regime allows taxpayers to claim various exemptions and deductions such as:
- HRA
- 80C (up to Rs. 1.5 lakh)
- 80D (medical insurance)
- Home loan interest, and more
For Individuals (Below 60 Years):
| Income Slab | Tax Rate |
|---|---|
| Up to Rs. 2,50,000 | Nil |
| Rs. 2,50,001 – Rs. 5,00,000 | 5% |
| Rs. 5,00,001 – Rs. 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
For Senior Citizens (60–80 Years):
| Income Slab | Tax Rate |
|---|---|
| Up to Rs. 3,00,000 | Nil |
| Rs. 3,00,001 – Rs. 5,00,000 | 5% |
| Rs. 5,00,001 – Rs. 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
For Super Senior Citizens (Above 80 Years):
| Income Slab | Tax Rate |
|---|---|
| Up to Rs. 5,00,000 | Nil |
| Rs. 5,00,001 – Rs. 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
Comparison Between New and Old Regime
| Feature | New Regime | Old Regime |
|---|---|---|
| Lower Slab Rates | Yes | No |
| Deductions Allowed | No (except few) | Yes |
| Standard Deduction | Yes (Rs. 50,000) | Yes |
| HRA, 80C, 80D, etc. | Not Allowed | Allowed |
| Default Regime | Yes | No |
" While the New Regime offers simplicity, the Old Regime remains beneficial for those with multiple investments and exemptions. "
Choosing the Right Regime
Opt for the New Regime if:
- You have fewer deductions to claim
- Prefer a straightforward, no-calculation approach
- Want faster ITR filing
Opt for the Old Regime if:
- You invest heavily in tax-saving instruments (e.g., PPF, LIC, ELSS)
- You claim home loan deductions or education loan interest
- Your HRA and medical insurance deductions are significant
" A thorough tax simulation is necessary before selecting the regime. Professional tax consultants can help optimize your liability. "
Surcharge and Cess
Both regimes attract the following surcharge and cess:
Surcharge:
- 10% on income above Rs. 50 lakh
- 15% on income above Rs. 1 crore
Health & Education Cess: 4% on total tax including surcharge
How Can a Tax Consultant Help?
A reliable Tax Consultant Company in Delhi can:
- Analyze both regimes based on your income and deductions
- Prepare simulations to minimize tax liability
- Guide you through investment strategies for optimal tax savings
- File your returns accurately and promptly
- Ensure compliance with the latest CBDT guidelines
Our expert Tax consultant services in Delhi go beyond just filing. We help you plan, save, and grow with a compliant and strategic tax approach.
Conclusion
Understanding the Income Tax Slab Rates for FY 2025–26 (AY 2026–27) is critical to planning your finances efficiently. Choosing between the Old and New tax regimes requires a close look at your income sources, deductions, and financial goals.
Partner with the Best Tax Consultant company in Delhi to navigate these choices confidently. Our Income Tax service in Delhi and Tax consultant services in Delhi ensure you make informed decisions, avoid compliance risks, and save more.
Stay ahead of the tax curve – consult experts and file your returns with clarity and confidence!
