{"id":44145,"date":"2025-02-01T16:05:50","date_gmt":"2025-02-01T10:35:50","guid":{"rendered":"https:\/\/coinswitch.co\/switch\/?p=44145"},"modified":"2025-02-01T16:05:59","modified_gmt":"2025-02-01T10:35:59","slug":"income-tax-slabs-and-rates","status":"publish","type":"post","link":"https:\/\/coinswitch.co\/switch\/personal-finance\/income-tax-slabs-and-rates\/","title":{"rendered":"Income Tax Slabs and Rates: 2025\u20132026 Taxpayers Best Guide"},"content":{"rendered":"\n

Finance Minister Nirmala Sitaraman presented the Union Budget 2025-2026<\/a> on 1st February 2025. While the budget provided major personal income tax cuts for middle-income earners, it maintained the status quo when it comes to taxation on Virtual Digital Assets (VDA) and cryptos.\u00a0<\/p>\n\n\n\n

Overall, the budget gave a major relief for the Indian middle class by tweaking the tax slabs and rates for those who have opted for the new tax regime. The result of these tweaks – zero income tax for annual income up to Rs. 12 lakh. <\/strong>The tax bonanza will lead to a savings of Rs. 80,000 for the middle class.  <\/p>\n\n\n\n

The budget had some major takeaways for agriculture and women empowerment but was silent on crypto taxation in India.\u00a0<\/p>\n\n\n\n

Here are the revised tax rates under the new tax regime. Read on to learn more. <\/p>\n\n\n\n

Overview of income tax slabs under the New Tax Regime for FY 2025-26 <\/h2>\n\n\n\n

The Union Budget 2025 offered a tax bonanza for middle-income taxpayers. <\/p>\n\n\n\n

Individuals filing income tax returns under the new regime will have tax-free income up to Rs. 12 lakhs and will save Rs. 80,000<\/em><\/strong> on taxes, which is essentially their entire tax liability, helped by a standard deduction of Rs. 75,000, <\/p>\n\n\n\n

The tax boost will bring cheer to the Indian middle class, boosting spending in the next financial year.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

A comparison of tax slabs between FY 2024-25 and FY 2025-26 under the new tax regime.<\/h3>\n\n\n\n
FY 2024-25 Income Tax Slab<\/strong><\/td>FY 2025-26 Income Tax Slab<\/strong><\/td>Income Tax Rates<\/strong><\/td><\/tr>
Up to Rs. 3 lakh<\/td>Up to Rs. 4 lakh<\/td>NIL<\/td><\/tr>
Rs.3 lakh – Rs.7 lakh<\/td>Rs.4 lakh – Rs.8 lakh<\/td>5%<\/td><\/tr>
Rs. 7 lakh – Rs. 10 lakh<\/td>Rs.8 lakh – Rs.12 lakh<\/td>10%<\/td><\/tr>
Rs. 10 lakh – Rs. 12 lakh<\/td>Rs.12 lakh – Rs.16 lakh<\/td>15%<\/td><\/tr>
Rs. 12 lakh – Rs. 15 lakh<\/td>Rs.16 lakh – Rs.20 lakh<\/td>20% <\/td><\/tr>
—<\/td>Rs.20 lakh – Rs.24 lakh<\/td>25%<\/td><\/tr>
Above Rs. 15 lakh<\/td>Above Rs. 24 Lakh<\/td>30%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Taxpayers opting for the new tax regime will enjoy lower income taxes, as the income limits for all tax slabs have been revised. <\/p>\n\n\n\n

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Key Direct Tax Proposals in the #UnionBudget2025<\/a>

Rebate on Income Tax;
\u2705 No tax for resident individuals with income up to \u20b912,00,000 under the new tax regime.
\u2705 Marginal relief applicable for incomes slightly exceeding \u20b912,00,000 to reduce the tax burden.@nsitharamanoffc<\/a>\u2026 pic.twitter.com\/EhIp9V2uEB<\/a><\/p>— Income Tax India (@IncomeTaxIndia) February 1, 2025<\/a><\/blockquote>