New Delhi:
The Government of India has clarified the income tax slabs for salaried persons for the Financial Year 2025–26 (Assessment Year 2026–27) under the New Tax Regime, which continues to remain the default option for taxpayers.
Under the revised structure, individuals with a taxable income of up to ₹12,00,000 will pay zero income tax, owing to the combined benefit of the standard deduction of ₹75,000 and the rebate under Section 87A.
New Tax Regime Slabs (FY 2025–26):
Income 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%
Major Relief for Salaried Taxpayers
Salaried individuals are entitled to a standard deduction of ₹75,000, significantly reducing their taxable income. For example, a person earning a gross salary of ₹12.75 lakh will have a taxable income of ₹12 lakh after deduction, resulting in zero tax liability.
Tax experts say the new regime offers simpler compliance and lower rates, though it allows fewer exemptions compared to the old tax regime. Taxpayers can still choose between the old and new regimes while filing their Income Tax Returns (ITR), depending on which is more beneficial.
Additionally, a 4% Health and Education Cess will continue to apply on the calculated tax amount.
The revised slabs are expected to boost disposable income and provide relief to the middle class, especially salaried employees.
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