{"id":7100,"date":"2025-06-26T10:20:26","date_gmt":"2025-06-26T10:20:26","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=glossary&#038;p=7100"},"modified":"2025-06-26T10:20:38","modified_gmt":"2025-06-26T10:20:38","slug":"income-tax-slabs-fy-2025-26-ay-2026-27","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/income-tax-slabs-fy-2025-26-ay-2026-27\/","title":{"rendered":"Income Tax Slabs FY 2025-26 | AY 2026-27"},"content":{"rendered":"<p>Here are the latest <strong><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/income-tax\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Income Tax<\/a> Slabs for Financial Year (FY) 2025&#x2013;26<\/strong> (Assessment Year 2026&#x2013;27) under both the <strong>New<\/strong> and <strong>Old <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/tax\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>Tax<\/a> Regimes<\/strong> in India, as announced in the Union Budget 2025.<\/p>\n\n\n\n<h2 id=\"new-tax-regime-default-from-fy-2025-26\" class=\"wp-block-heading\">New Tax Regime (Default from FY 2025&#x2013;26)<\/h2>\n\n\n\n<p>The New Tax Regime offers simplified tax slabs with lower rates but limited exemptions and deductions.<\/p>\n\n\n\n<h3 id=\"income-tax-slabs-and-rates\" class=\"wp-block-heading\">Income Tax Slabs and Rates:<\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Annual Income (&#x20B9;)<\/th><th>Tax Rate<\/th><\/tr><\/thead><tbody><tr><td>Up to &#x20B9;4,00,000<\/td><td>Nil<\/td><\/tr><tr><td>&#x20B9;4,00,001 &#x2013; &#x20B9;8,00,000<\/td><td>5%<\/td><\/tr><tr><td>&#x20B9;8,00,001 &#x2013; &#x20B9;12,00,000<\/td><td>10%<\/td><\/tr><tr><td>&#x20B9;12,00,001 &#x2013; &#x20B9;16,00,000<\/td><td>15%<\/td><\/tr><tr><td>&#x20B9;16,00,001 &#x2013; &#x20B9;20,00,000<\/td><td>20%<\/td><\/tr><tr><td>&#x20B9;20,00,001 &#x2013; &#x20B9;24,00,000<\/td><td>25%<\/td><\/tr><tr><td>Above &#x20B9;24,00,000<\/td><td>30%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 id=\"key-features\" class=\"wp-block-heading\">Key Features:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Rebate under <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/section-87a\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Section 87A<\/a><\/strong>: Increased to &#x20B9;60,000 for individuals with income up to &#x20B9;12,00,000, effectively resulting in zero tax liability for such taxpayers. <\/li>\n\n\n\n<li><strong><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/standard-deduction\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Standard Deduction<\/a><\/strong>: &#x20B9;75,000 for salaried individuals and pensioners.<\/li>\n\n\n\n<li><strong>Default Regime<\/strong>: The New Tax Regime is now the default; however, taxpayers can opt for the Old Regime when filing returns.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"old-tax-regime\" class=\"wp-block-heading\">Old Tax Regime<\/h2>\n\n\n\n<p>The Old Tax Regime allows various exemptions and deductions, such as those under Sections 80C, 80D, HRA, etc.<\/p>\n\n\n\n<h3 id=\"income-tax-slabs-and-rates-1\" class=\"wp-block-heading\">Income Tax Slabs and Rates:<\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Annual Income (&#x20B9;)<\/th><th>Tax Rate<\/th><\/tr><\/thead><tbody><tr><td>Up to &#x20B9;2,50,000<\/td><td>Nil<\/td><\/tr><tr><td>&#x20B9;2,50,001 &#x2013; &#x20B9;5,00,000<\/td><td>5%<\/td><\/tr><tr><td>&#x20B9;5,00,001 &#x2013; &#x20B9;10,00,000<\/td><td>20%<\/td><\/tr><tr><td>Above &#x20B9;10,00,000<\/td><td>30%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 id=\"rebate-under-section-87a\" class=\"wp-block-heading\">Rebate under Section 87A:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#x20B9;12,500 for individuals with income up to &#x20B9;5,00,000, resulting in zero tax liability for such taxpayers.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"choosing-between-new-and-old-regimes\" class=\"wp-block-heading\">Choosing Between New and Old Regimes<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Opt for the New Regime<\/strong> if you prefer lower tax rates and have minimal investments in tax-saving instruments.<\/li>\n\n\n\n<li><strong>Opt for the Old Regime<\/strong> if you have significant deductions and exemptions to claim, which can reduce your taxable income substantially.<\/li>\n<\/ul>\n\n\n\n<p>For a detailed comparison and to calculate your tax liability under both regimes, you can use the Income Tax Calculator provided by the Income Tax Department.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here are the latest Income Tax Slabs for Financial Year (FY) 2025&#x2013;26 (Assessment Year 2026&#x2013;27) under both the New and Old Tax Regimes in India, as announced in the Union Budget 2025. New Tax Regime (Default from FY 2025&#x2013;26) The New Tax Regime offers simplified tax slabs with lower rates but limited exemptions and deductions. [&#x2026;]<\/p>\n","protected":false},"author":9,"featured_media":0,"menu_order":0,"template":"","meta":{"footnotes":""},"class_list":["post-7100","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7100","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/9"}],"version-history":[{"count":1,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7100\/revisions"}],"predecessor-version":[{"id":7101,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7100\/revisions\/7101"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=7100"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}