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Income Tax Slab Rates FY 2025-26

New tax regime vs old tax regime — complete slab tables, surcharge, cess, and rebate under Section 87A. Updated for Budget 2025.

New Tax Regime (Default from FY 2023-24)

Standard deduction of ₹75,000 for salaried. Rebate u/s 87A: No tax if income ≤ ₹7,00,000.

Recommended for most
Income RangeTax RateMax Tax in Slab
Up to ₹3,00,000NIL₹0
₹3,00,001 – ₹7,00,0005%Up to ₹20,000
₹7,00,001 – ₹10,00,00010%Up to ₹30,000
₹10,00,001 – ₹12,00,00015%Up to ₹30,000
₹12,00,001 – ₹15,00,00020%Up to ₹60,000
Above ₹15,00,00030%30% on excess
+ 4% Health & Education Cess on income tax + surcharge. Marginal relief applicable near slab boundaries.

Old Tax Regime (Opt-in required)

Allows deductions: 80C (₹1.5L), HRA, 80D, home loan interest, NPS (80CCD). Rebate u/s 87A: No tax if income ≤ ₹5,00,000.

Income RangeTax RateMax Tax in Slab
Up to ₹2,50,000NIL₹0
₹2,50,001 – ₹5,00,0005%Up to ₹12,500
₹5,00,001 – ₹10,00,00020%Up to ₹1,00,000
Above ₹10,00,00030%30% on excess

Senior Citizens (60–80 yrs): Exemption up to ₹3,00,000 | Super Senior (80+ yrs): Exemption up to ₹5,00,000

+ 4% Health & Education Cess on income tax + surcharge.

Surcharge Rates

Applicable on income tax (before cess) when total income exceeds ₹50 lakh.

Total IncomeSurcharge Rate
Up to ₹50,00,000NIL
₹50,00,001 – ₹1,00,00,00010%
₹1,00,00,001 – ₹2,00,00,00015%
₹2,00,00,001 – ₹5,00,00,00025%
Above ₹5,00,00,00037% (old) / 25% (new)

Key Points for FY 2025-26

  • New regime is the default. You must explicitly opt out to use old regime.
  • Standard deduction raised to ₹75,000 (from ₹50,000) under new regime — Budget 2024.
  • Section 87A rebate (new regime): zero tax up to income of ₹7,00,000.
  • Max surcharge for new regime capped at 25% (vs 37% old regime for >₹5 crore).
  • 4% Health & Education Cess applies on (income tax + surcharge) for all taxpayers.

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