Income tax slabs in India change with every Union Budget. For FY 2025-26 (Assessment Year 2026-27), Budget 2025 brought significant changes to the New Tax Regime — making it more attractive than ever while retaining the Old Regime for those with significant deductions. Here's the complete reference guide.
New Tax Regime Slabs — FY 2025-26
| Income Slab | Tax Rate | Tax on Slab |
|---|---|---|
| Up to ₹4,00,000 | Nil | ₹0 |
| ₹4,00,001 – ₹8,00,000 | 5% | Up to ₹20,000 |
| ₹8,00,001 – ₹12,00,000 | 10% | Up to ₹40,000 |
| ₹12,00,001 – ₹16,00,000 | 15% | Up to ₹60,000 |
| ₹16,00,001 – ₹20,00,000 | 20% | Up to ₹80,000 |
| ₹20,00,001 – ₹24,00,000 | 25% | Up to ₹1,00,000 |
| Above ₹24,00,000 | 30% | 30% on amount above ₹24L |
Zero tax up to ₹12 lakh: Standard deduction of ₹75,000 reduces taxable income to ₹11.25L. Section 87A rebate covers the tax on ₹11.25L under New Regime — making effective tax zero for income up to ₹12,75,000.
Old Tax Regime Slabs — FY 2025-26
| Income Slab | General | Senior (60-80 yrs) | Super Senior (80+) |
|---|---|---|---|
| Up to ₹2,50,000 | Nil | Nil | Nil |
| ₹2.5L – ₹3,00,000 | 5% | Nil | Nil |
| ₹3L – ₹5,00,000 | 5% | 5% | Nil |
| ₹5L – ₹10,00,000 | 20% | 20% | 20% |
| Above ₹10,00,000 | 30% | 30% | 30% |
Surcharge on Income Tax
| Income Range | Surcharge Rate |
|---|---|
| Up to ₹50 lakh | Nil |
| ₹50L – ₹1 crore | 10% |
| ₹1Cr – ₹2 crore | 15% |
| ₹2Cr – ₹5 crore | 25% (New) / 25% (Old) |
| Above ₹5 crore | 25% (New) / 37% (Old) |
NRI Tax Rules India 2025-26
- NRIs are taxed only on income earned or received in India
- NRI status: Stayed less than 182 days in India during the financial year
- NRE account interest: Tax-free for NRIs
- NRO account interest: Taxable at 30% + surcharge (TDS deducted at source)
- Capital gains on Indian stocks/MFs: Same rates as residents
- Property sold in India: TDS at 20% on capital gains (buyer must deduct)
Tax for Freelancers and Self-Employed
Freelancers file ITR-3 or ITR-4 (presumptive taxation). Under Section 44ADA, professionals (doctors, lawyers, consultants, engineers) with income up to ₹75 lakh can declare 50% of gross receipts as taxable income — remaining 50% deemed as expenses. This simplifies bookkeeping significantly.
Use our Income Tax Calculator to compute your exact tax under both regimes for FY 2025-26, compare the two, and find which saves you more.