Income tax slabs for FY 2025-26 (AY 2026-27)
The old and new regime income-tax slabs that applied to income earned in FY 2025-26, filed in AY 2026-27. Every figure below — slabs, standard deduction, section 87A rebate, surcharge and the 4% cess — is taken from Finance Act, 2025 and the Income Tax Department, and was last checked on 28 October 2026.
FY 2025-26 at a glance
| Financial year | FY 2025-26 (income earned 1 April 2025 to 31 March 2026) |
|---|---|
| Assessment year | AY 2026-27 (the year you file and are assessed) |
| Default regime | New regime (section 115BAC) |
| Governing law | Finance Act, 2025 |
| Standard deduction (salary/pension) | ₹75,000 new regime, ₹50,000 old regime |
| Health & education cess | 4% on tax plus surcharge |
The financial year is when you earn the income; the assessment year is the next year, when you file the return and the income is assessed. The slabs on this page are the FY 2025-26 slabs — match them to the year you earned the money, not the year you file.
New regime slabs (section 115BAC) — FY 2025-26
The new regime offers lower slab rates in exchange for giving up most deductions and exemptions, though the standard deduction on salary is allowed. It was the default this year; you had to opt out to use the old regime.
| Income | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 to ₹8,00,000 | 5% |
| ₹8,00,001 to ₹12,00,000 | 10% |
| ₹12,00,001 to ₹16,00,000 | 15% |
| ₹16,00,001 to ₹20,00,000 | 20% |
| ₹20,00,001 to ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Standard deduction: ₹75,000 on salary or pension. Section 87A rebate: Up to ₹60,000, available where total income is at most ₹12,00,000, with marginal relief just above the limit.
Old (normal) regime slabs — FY 2025-26
The old regime keeps the deductions the new regime gives up — section 80C, HRA under section 10(13A), the home-loan interest deduction and the rest. Whether it beats the new regime depends on how much you actually claim. These slabs are for a resident individual below 60.
| Income | Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Senior citizens (60 to under 80) get a higher basic exemption of ₹3,00,000, and super-senior citizens (80 and over) ₹5,00,000 — the bands above are otherwise the same. Standard deduction: ₹50,000 on salary or pension. Section 87A rebate: Up to ₹12,500, available where total income is at most ₹5,00,000.
Surcharge and cess
10% on income over ₹50 lakh, 15% over ₹1 crore and 25% over ₹2 crore. The 37% band on income over ₹5 crore applies only in the OLD regime — the new regime is capped at 25%. On sections 111A, 112, 112A and dividends the surcharge is capped at 15%. Marginal relief applies at each threshold.
The 4% health and education cess is then added to the tax plus any surcharge.
Capital gains
On transfers on or after 23 July 2024 (the position for the whole of FY 2025-26): listed equity and equity mutual funds — short-term (section 111A) 20%, long-term (section 112A) 12.5% on gains above ₹1.25 lakh a year. Other long-term gains 12.5% without indexation; resident individuals and HUFs selling land or a building acquired before 23 July 2024 may instead choose 20% with indexation.
Estimate a sale with the capital gains calculator.
Tax audit and return due date
Tax audit (section 44AB): Business: accounts must be audited under section 44AB where turnover exceeds ₹1 crore, raised to ₹10 crore where cash receipts and cash payments are each ≤5% of the total. Professions: ₹50 lakh of gross receipts.
Return due date: 31 July 2026 for individuals not subject to audit (unless the CBDT extends it, as it has in several recent years).
Advance tax is payable in instalments where the liability for the year is ₹10,000 or more — see the advance tax calculator.
What changed in FY 2025-26
- New-regime slabs widened so that no tax is payable up to ₹12 lakh of normal income (₹12.75 lakh for salaried taxpayers after the ₹75,000 standard deduction).
- Section 87A rebate raised to ₹60,000, available up to ₹12 lakh of total income, with marginal relief just above the limit.
- A new ₹20–24 lakh slab at 25% was inserted; the 30% rate now starts above ₹24 lakh.
Introduced by Finance Act, 2025 (Union Budget 2025).
Other years and tools
- Income tax slabs for FY 2024-25 (the previous year)
- All financial years
- Compare old vs new regime with the income tax calculator.
Frequently asked questions
What are the new regime income tax slabs for FY 2025-26?
Under section 115BAC for FY 2025-26 (AY 2026-27): Up to ₹4,00,000 — Nil; ₹4,00,001 to ₹8,00,000 — 5%; ₹8,00,001 to ₹12,00,000 — 10%; ₹12,00,001 to ₹16,00,000 — 15%; ₹16,00,001 to ₹20,00,000 — 20%; ₹20,00,001 to ₹24,00,000 — 25%; Above ₹24,00,000 — 30%. A 4% health and education cess is added to the tax.
Is there a standard deduction in the new regime for FY 2025-26?
Yes — ₹75,000 on salary or pension income. In the old regime the standard deduction is ₹50,000.
What is the section 87A rebate for FY 2025-26?
New regime: Up to ₹60,000, available where total income is at most ₹12,00,000, with marginal relief just above the limit. Old regime: Up to ₹12,500, available where total income is at most ₹5,00,000. The rebate does not apply to tax on special-rate income such as capital gains.
Which was the default regime in FY 2025-26?
The new regime was the default in FY 2025-26. You could still opt for the old regime, but you had to choose it — a salaried taxpayer tells the employer or elects it in the return.
When was the income tax return for FY 2025-26 due?
31 July 2026 for individuals not subject to audit (unless the CBDT extends it, as it has in several recent years). The AY 2026-27 return reports income earned in FY 2025-26.
Sources
Every figure on this page is taken from the official sources below. Finance Acts change slabs and thresholds — check the source before you rely on a number. This is general information, not tax advice.
- Income Tax Department — Returns & Forms Applicable, AY 2026-27FY 2025-26 new (115BAC) and old regime slabs, the ₹60,000 section 87A rebate, surcharge and the 4% cess.
- PIB — Union Budget 2025-26 (no income tax up to ₹12 lakh, new regime)The revised FY 2025-26 new-regime slabs, the ₹12 lakh nil-tax threshold (₹12.75 lakh for salaried via the ₹75,000 standard deduction) and the ₹60,000 section 87A rebate.
- Income Tax Department — Tax rates (incometaxindia.gov.in)Individual slab rates for the old/normal regime and the new regime (section 115BAC), the section 87A rebate, surcharge bands and the 4% health & education cess, by assessment year.
- Income Tax Department — section 44AB (tax audit), Income-tax Act 1961₹1 crore business turnover audit threshold, the ₹10 crore threshold where cash receipts and payments are each ≤5% (Finance Act 2021, from AY 2021-22), and the ₹50 lakh professional-receipts threshold.
- PIB — capital gains rationalisation, Finance (No. 2) Act 2024 (from 23 July 2024)From 23 July 2024: listed STCG (111A) 20%, listed LTCG (112A) 12.5% above ₹1.25 lakh, other LTCG 12.5% without indexation, and the pre-23-July-2024 land/building indexation option.
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