Mitali
For the Financial Year 2025-26 (AY 2026-27), the Section 115BAC New Tax Regime is the default option while the Old Tax Regime remains available as a choice with no changes to its existing slabs.
New Tax Regime Slabs (FY 2025-26 & AY 2026-27)
These slabs are applicable for individuals, senior citizens and super senior citizens.
| Taxable Income (₹) | Tax Rate |
| Up to 4,00,000 | NIL |
| 4,00,001 – 8,00,000 | 5% |
| 8,00,001 – 12,00,000 | 10% |
| 12,00,001 – 16,00,000 | 15% |
| 16,00,001 – 20,00,000 | 20% |
| 20,00,001 – 24,00,000 | 25% |
| Above 24,00,000 | 30% |
Key Benefits From New Tax Regime
Zero Tax Threshold: Resident individuals with taxable income up to ₹12 lakh can pay zero tax under Section 87A rebate provisions.
Rebate u/s 87A: The rebate of ₹60,000 is available which fully offsets tax liabilities for net taxable with an income up to ₹12 lakh.
Standard Deduction: Salaried individuals earning up to ₹12.75 lakh can pay zero income tax i.e., standard deduction up to ₹75,000.
Old Tax Regime Slabs (FY 2025-26)
The old regime retains different exemption limits based on age groups.
| Income Slab (₹) | Individuals (upto 60 yrs) | Senior Citizens (60-80 yrs) | Super Seniors (>80 yrs) |
| Up to 2,50,000 | NIL | NIL | NIL |
| 2,50,001 – 3,00,000 | 5% | NIL | NIL |
| 3,00,001 – 5,00,000 | 5% | 5% | NIL |
| 5,00,001 – 10,00,000 | 20% | 20% | 20% |
| Above 10,00,000 | 30% | 30% | 30% |
Key Benefits From Old Tax Regime
Standard Deduction: Remains at ₹50,000 for salaried individuals.
Rebate: A rebate of up to ₹12,500 is available for income up to ₹5 lakh.
Surcharge and Cess
The surcharge rates are as follows:
| Income Limit | New Tax Regime | Old Tax Regime |
| Up to Rs. 50 lakh | Nil | Nil |
| Rs. 50 lakh to Rs. 1 Crore | 10% | 10% |
| Rs. 1 Crore to Rs. 2 Crore | 15% | 15% |
| Rs. 2 Crore to Rs. 5 Crore | 25% | 25% |
| Above Rs. 5 Crore | 25% | 37% |
Both regimes apply the same 4% health and education cess on the tax liability.
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