Income Tax Slabs India
New regime vs old regime rates, 87A rebate, surcharge and cess — everything you need to calculate your tax liability for FY 2025-26.
New Tax Regime — FY 2025-26 (Default)
The new regime is now the default. It has lower rates but most deductions (80C, HRA, etc.) are not available.
| Income slab | Tax rate | Tax on slab amount |
|---|---|---|
| Up to ₹3,00,000 | Nil | — |
| ₹3,00,001 – ₹7,00,000 | 5% | ₹20,000 |
| ₹7,00,001 – ₹10,00,000 | 10% | ₹30,000 |
| ₹10,00,001 – ₹12,00,000 | 15% | ₹30,000 |
| ₹12,00,001 – ₹15,00,000 | 20% | ₹60,000 |
| Above ₹15,00,000 | 30% | 30% on amount above ₹15L |
Old Tax Regime — FY 2025-26
Opt for old regime if your deductions (80C, HRA, home loan, etc.) reduce taxable income more than the rate advantage of the new regime.
| Income slab | Tax rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Surcharge
Applied on the base income tax (before cess). New regime caps surcharge at 25%.
| Income range | Surcharge (old) | Surcharge (new) |
|---|---|---|
| Up to ₹50 lakh | Nil | Nil |
| ₹50L – ₹1 Cr | 10% | 10% |
| ₹1 Cr – ₹2 Cr | 15% | 15% |
| ₹2 Cr – ₹5 Cr | 25% | 25% |
| Above ₹5 Cr | 37% | 25% (capped) |
Health & Education Cess
4% on income tax + surcharge. Applied in both regimes.
New vs Old — Which Should You Choose?
- Lower slab rates
- Zero tax up to ₹12L (87A)
- ₹75,000 standard deduction (salaried)
- No 80C, 80D, HRA, home loan deductions
- Simple — just report income
- Higher slab rates (20% band)
- 87A up to ₹5L after deductions
- ₹50,000 standard deduction (salaried)
- Full 80C (₹1.5L), 80D, HRA, home loan
- Better if deductions exceed ~₹3.75L
Rule of thumb: if you have 80C + HRA + home loan totalling more than ₹3.75 lakh, run the numbers under old regime. We can calculate this for you free.
Figures are based on Union Budget 2025 (Finance Act 2025). Rates apply to individuals and HUFs (resident, below 60 years). Senior citizens (60-79 years) and super senior citizens (80+) have higher basic exemption under old regime. Always verify with a CA for your specific situation.
Last updated: April 2025