Income Tax Slab For 2025-26 is proposed in the the Union Budget 2025 as new direct tax slabs and rates under the new income tax regime so that no income tax is needed to be paid for total income up to ₹ 12 Lakh per annum, i.e. average income of Rs 1 Lakh per month, other than special rate income such as Capital Gain. Income Tax Slab For 2025-26 given more relief for middle class people.
Income tax for salary person earning up to ₹ 12.75 Lakh per annum will be NIL, due to standard deduction of ₹ 75,000. Towards the new tax structure and other direct tax proposals, Government is set to lose revenue of about ₹ 1 lakh crore.
Under the guidance of PM of India, the Government has taken steps to understand the needs voiced by the people. The direct tax proposals include Income tax for salary person For 2025-26 reform with special focus on middle class, TDS/TCS rationalization, encouragement to voluntary compliances along with reduction of compliance burden, ease of doing business and incentivizing employment and investment in Income Tax Slab For 2025-26
The Budget proposes revised tax rate structure under the Income Tax Slab For 2025-26 as follows:
| Total Income Per Annum | Rate of Tax |
|---|---|
| ₹ 0 – 4 Lakh | NIL |
| ₹ 4 – 8 Lakh | 5% |
| ₹ 8 – 12 Lakh | 10% |
| ₹ 12 – 16 Lakh | 15% |
| ₹ 16 – 20 Lakh | 20% |
| ₹ 20 – 24 Lakh | 25% |
| Above ₹ 24 Lakh | 30% |
To rationalize TDS/TCS, Budget doubles limit for tax deduction on interest earned by senior citizens from the present ₹ 50,000 to ₹ 1 Lakh. Further, TDS threshold on rent has been increased to ₹ 6 Lakh from ₹ 2.4 Lakh per annum. Other measures include, increasing of threshold to collect TCS to ₹ 10 Lakh and continuing with higher TDS deductions only in non-PAN cases. After the decriminalization of delay in payment of TDS, delay in TCS payments has now been decriminalized in income Tax Slab For 2025-26
Example of your Income Tax Slab For 2025-26
| Income (In lac) | Basic Salary (In lac) | NPS Contribution (14% of basic) (Rs) | Taxable Income (In lac) | Total Tax (In lac) |
|---|---|---|---|---|
| 13.7 | 6.8 | ₹ 95,800 | 11.98 | NIL |
| 16 | 8 | ₹ 1,12,000 | 14.13 | ₹ 91,951 |
| 24 | 12 | ₹ 1,68,000 | 21.57 | ₹ 2,39,000 |
| 32 | 16 | ₹ 2,24,000 | 29.02 | ₹ 4,50,000 |
| 48 | 24 | ₹ 3,36,000 | 43.90 | ₹ 8,97,000 |
Tax variations for Income Tax Slab for 2025
Encouraging voluntary compliance, Budget extends time-limit to file updated returns for any assessment year, from the current limit of two years, to four years. Over 90 Lakh taxpayers paid additional tax to update their income. Small charitable trusts/institutions have been given the benefit by increasing their period of registration from 5 to 10 years, reducing compliance burden. Further, tax payers can now claim annual value of two self-occupied properties as NIL, without any condition. Last budget’s Vivad Se Vishwas Scheme has received a great response, with nearly 33,000 tax payers having availed the scheme to settle their disputes. Giving benefits to senior and very senior citizens, withdrawals made from National Savings Scheme Accounts on or after 29th of August, 2024 have been exempted as part of Income Tax Slab for FY 2025-26 in India for senior citizens. NPS Vatsalya accounts also to get similar benefits as part of Income Tax Slab For 2025-26.
For ease of doing business, Budget introduces a scheme for determining arm’s length price of international transaction for a block period of three years. This is in line with global best practices. Further, self harbor rules are being expanded to provide certainty in international taxation.
To promote employment and investment, a presumptive taxation regime is envisaged for non-residents who provide services to a resident company that is establishing or operating an electronics manufacturing facility. Further, benefits of existing tonnage tax scheme are proposed to be extended to inland vessels. To promote start-up ecosystem, period of incorporation has been extended for a period of 5 years. To promote investment in the infrastructure sector, Budget extends the date of making investment in Sovereign Wealth Funds and Pension Funds by five more years, to 31st March, 2030.
As part of rationalization of Customs tariffs of industrial goods, Budget proposes to; (i) Remove seven tariffs, (ii) apply appropriate CESS to maintain effective duty incidence, and (iii) levy not more than one CESS or surcharge.
As relief on import of Drugs/Medicines, 36 lifesaving drugs and medicines for treating cancer, rare diseases and chronic diseases have been fully exempted from Basic Customs Duty (BCD). Further, 37 medicines along with 13 new drugs and medicines under Patient Assistance Programs have been exempted from Basic Customs Duty (BCD), if supplied free to patients.
To support Domestic Manufacturing and Value Addition, BCD on 25 critical minerals, that were not domestically available, were exempted in July 2024. The Income Tax Slab For 2025-26 fully exempts cobalt powder and waste, scrap of lithium-ion battery, Lead, Zinc and 12 more critical minerals. To promote domestic textile production, two more types of shuttle-less looms added to fully exempted textile machinery. Further, BCD on knitted fabrics covering nine tariff lines from “10% to 20%” revised to “20% or ₹ 115 kg, whichever is higher”.
To rectify inverted duty structure and promote “Make in India”, BCD on Interactive Flat Panel Display (IFPD) increased to 20% and on Open cells reduced to 5%. Further to promote manufacture of Open cells, BCD on parts of Open Cells stands exempted.
Income Tax Slab For 2025-26 as per Union Budget 2025-26 To boost manufacturing of Lithium-ion battery in the country, 35 additional capital goods for EV battery manufacturing, and 28 additional capital goods for mobile phone battery manufacturing added to the list of exempted capital goods. Union Budget 2025-26 also continues exemption on BCD on raw materials, components, consumables or parts for ship building for another ten years. Budget also reduced BCD from 20% to 10% on Carrier Grade ethernet switches to make it at par with Non-Carrier Grade ethernet switches.
For export promotion, Budget 2025-26 facilitates exports of handicrafts, fully exempts BCD on Wet Blue leather for value addition and employment, reduce BCD from 30% to 5% on Frozen Fish Paste and reduce BCD from 15% to 5% on fish hydrolysate for manufacture of fish and shrimp feeds.
Union Minister of Finance and Corporate Affairs said that Democracy, Demography and Demand are key pillars of Viksit Bharat journey. She said that the middle class gives strength of India’s growth and the Government has periodically hiked the ‘Nil tax’ slab in recognition to their contribution. She said the proposed new income tax for salaried employee and middle class will substantially boost consumption, savings and investment, by putting more money in the hands of the middle class.
As Income Tax Slab For 2025-26 for Women will remain same like last financial year 2024-25
Income Tax Slabs for Women Below 60 Years (FY 2024-25) Union Budget
If you are wondering how much income comes under the income tax slab for ladies, the answer varies depending on the age and taxable income bracket. In India, the income tax slabs for FY 2024-25 are the same for men and women below 60, regardless of the chosen tax regime. Here are the tax rates for different income tax for women below 60:
Old tax regime for Women (FY 2024-25)
| Income Slab (₹) | Tax Rate (%) |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹ 2,50,001 – ₹ 5,00,000 | 5% above ₹2,50,000 |
| ₹ 5,00,001 – ₹ 10,00,000 | ₹ 12,500 + 20% above ₹ 5,00,000 |
| Above ₹ 10,00,000 | ₹ 1,12,500 + 30% above ₹ 10,00,000 |
New Tax Regime for Women (FY 2024-25)
| Income Slab (₹) | Tax Rate (%) |
|---|---|
| Up to ₹ 3,00,000 | Nil |
| ₹ 3,00,001 – ₹ 6,00,000 | 5% above ₹ 3,00,000 |
| ₹ 6,00,001 – ₹ 9,00,000 | ₹ 15,000 + 10% above ₹ 6,00,000 |
| ₹ 9,00,001 – ₹ 12,00,000 | ₹ 45,000 + 15% above ₹ 9,00,000 |
| ₹ 12,00,001 – ₹ 15,00,000 | ₹ 90,000 + 20% above ₹ 12,00,000 |
| Above ₹ 15,00,000 | ₹ 1,50,000 + 30% above ₹ 15,00,000 |
Income Tax Slabs for Women Between 60-80 Income (FY 2024-25) Union Budget
Taxable income for women for FY 2024-25 differs for senior citizens between 60 and 80 years old compared to younger individuals. Let us take a look at these:
Old tax regime for Women Between 60-80 (FY 2024-25)
| Income Slab (₹) | Tax Rate (%) |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 – ₹5,00,000 | 5% above ₹3,00,000 |
| ₹5,00,001 – ₹10,00,000 | ₹10,000 + 20% above ₹5,00,000 |
| Above ₹10,00,000 | ₹1,10,000 + 30% above ₹10,00,000 |
New tax regime for Women Between 60-80 (FY 2024-25)
| Income Slab (₹) | Tax Rate (%) |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 – ₹6,00,000 | 5% above ₹ 3,00,000 |
| ₹6,00,001 – ₹9,00,000 | ₹ 15,000 + 10% above ₹6,00,000 |
| ₹9,00,001 – ₹12,00,000 | ₹45,000 + 15% above ₹9,00,000 |
| ₹12,00,001 – ₹15,00,000 | ₹90,000 + 20% above ₹12,00,000 |
| Above ₹ 15,00,000 | ₹1,50,000 + 30% above ₹15,00,000 |
Income Tax Slab for Super Senior Citizens (Women Above 80 Years) (FY 2024-25) Union Budget
The income tax slabs are the same for super senior citizens (women above 80 years) as other age groups. However, they benefit from a much higher tax exemption limit. Here are the income tax rates for super seniors in India:
Old tax regime for Women Above 80 Years (FY 2024-25)
| Income Slab (₹) | Tax Rate (%) |
|---|---|
| Up to ₹5,00,000 | Nil |
| ₹5,00,001 – ₹10,00,000 | 20% above ₹5,00,000 |
| Above ₹10,00,000 | ₹1,00,000 + 30% above ₹10,00,000 |
New tax regime for Women Above 80 Years (FY 2024-25)
| Income Slab (₹) | Tax Rate (%) |
|---|---|
| Up to ₹ 3,00,000 | Nil |
| ₹3,00,001 – ₹6,00,000 | 5% above ₹3,00,000 |
| ₹ 6,00,001 – ₹9,00,000 | ₹ 15,000 + 10% above ₹6,00,000 |
| ₹9,00,001 – ₹12,00,000 | ₹ 45,000 + 15% above ₹9,00,000 |
| ₹12,00,001 – ₹15,00,000 | ₹90,000 + 20% above ₹12,00,000 |
| Above ₹15,00,000 | ₹1,50,000 + 30% above ₹15,00,000 |