Current Income Tax Slabs in India

Assessment Year 2025-26

New Tax Regime

The new tax regime, also known as the alternative tax regime, is an optional tax regime for individuals and Hindu Undivided Families (HUFs). It provides for lower tax rates but with reduced deductions and exemptions.

Old Tax Regime

The old tax regime provides for higher tax rates but with more deductions and exemptions. Individuals and HUFs can choose to remain in the old tax regime if they prefer to avail of these deductions and exemptions.

Tax Slab Rates

• Up to Rs. 2.5 lakhs: Nil
• Rs. 2.5 lakhs to Rs. 5 lakhs: 5%
• Rs. 5 lakhs to Rs. 7.5 lakhs: 10%
• Rs. 7.5 lakhs to Rs. 10 lakhs: 15%
• Rs. 10 lakhs to Rs. 12.5 lakhs: 20%
• Rs. 12.5 lakhs to Rs. 15 lakhs: 25%
• Above Rs. 15 lakhs: 30%

**Note:** The above tax rates are applicable for the financial year 2024-25 and the assessment year 2025-26.

Key Changes from Previous Year

There have been no significant changes in the income tax slabs and rates for the financial year 2024-25.

Additional Points

• Individuals and HUFs can choose to switch between the new and old tax regimes each year.
• The choice of tax regime must be made at the time of filing the income tax return.
• It is advisable to compare the tax liability under both the new and old tax regimes before making a decision.