Here’s a concise summary and key takeaways from the New Income Tax Slabs for FY 2025-26 (AY 2026-27):
🧾 New Tax Regime – FY 2025-26 Slabs
| Income Slab | Tax Rate |
| Up to ₹4 lakh | NIL |
| ₹4 lakh – ₹8 lakh | 5% |
| ₹8 lakh – ₹12 lakh | 10% |
| ₹12 lakh – ₹16 lakh | 15% |
| ₹16 lakh – ₹20 lakh | 20% |
| ₹20 lakh – ₹24 lakh | 25% |
| Above ₹24 lakh | 30% |
Rebate under 87A:
- Increased to ₹60,000 for FY 2025-26
- No tax up to ₹12 lakh (₹12.75 lakh for salaried individuals after standard deduction of ₹75,000)
⚖️ Comparison with FY 2024-25 Slabs (New Regime)
| Income Slab | Tax Rate (FY 2024-25) |
| Up to ₹3 lakh | NIL |
| ₹3 lakh – ₹7 lakh | 5% |
| ₹7 lakh – ₹10 lakh | 10% |
| ₹10 lakh – ₹12 lakh | 15% |
| ₹12 lakh – ₹15 lakh | 20% |
| Above ₹15 lakh | 30% |
Rebate under 87A (FY 2024-25): ₹25,000 (for income up to ₹7 lakh)
📋 Key Features of New Regime
- Default regime (unless old regime opted)
- Uniform rates across age groups
- Standard deduction for salaried: ₹75,000
- Deduction on employer NPS contribution: up to 14%
- Family pension deduction increased to ₹25,000
- Highest surcharge capped at 25% (was 37%)
❌ Major Deductions/Exemptions Not Allowed in New Regime
- 80C (LIC, PPF, etc.), 80D (Medical), 80E (Education Loan)
- HRA, LTA, Home Loan interest (self-occupied)
- Donations (80G), Children education allowance, etc.
✅ Still Allowed in New Regime
- Transport allowance for specially-abled
- Conveyance & travel allowances
- Gratuity, VRS compensation, leave encashment
- Interest on let-out property loans
- Gifts up to ₹50,000
- Deduction under 80CCD(2) (employer NPS) and 80JJAA
🧮 Sample Tax Calculation (FY 2025-26) – ₹21 lakh Income
Net Taxable Income: ₹20.25 lakh
Tax (New Regime): ₹2,97,500
+ Cess @4%: ₹11,900
Total: ₹3,09,400
Old Regime Equivalent: ₹4,44,600
➡️ New regime saves ₹1,35,200 in this example
🧮 Tax Calculation (FY 2025-26) – ₹10 lakh Income
Under new slabs + rebate: Zero Tax
