The government has introduced new income tax slabs for the financial year 2025-26, significantly altering the tax rates and benefits. With the new tax structure, individuals earning up to โน12 lakh annually will not be liable to pay any income tax, thanks to rebates and revised slab rates. Hereโs a detailed breakdown of the changes and how they impact taxpayers.
Key Highlights of the New Tax Regime
- 0% tax on income up to โน12 lakh (โน12.75 lakh for salaried employees)
- No tax for individuals earning โน1 lakh per month
- Revised slab rates for incomes above โน12 lakh
- New tax slabs with reduced tax rates compared to the previous structure
Revised Income Tax Slabs for FY 2025-26
Below are the revised tax slabs that will apply to individuals based on their annual income:
| Income Slab (โน) | Tax Rate (%) |
|---|---|
| 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% |
Tax Benefits and Savings
With the new tax slabs, individuals earning up to โน12 lakh will get full tax rebate benefits. The following table compares the previous and revised tax rates, showcasing the savings:
| Income (โน) | Previous Tax (โน) | Proposed Tax (โน) | Benefit Per Slab (โน) | Rebate Benefit (โน) | Total Benefit (โน) | Tax Payable After Benefit (โน) |
| Up to 8 lakh | 30,000 | 20,000 | 10,000 | 20,000 | 30,000 | 0 |
| 9 lakh | 40,000 | 30,000 | 10,000 | 30,000 | 40,000 | 0 |
| 10 lakh | 50,000 | 40,000 | 10,000 | 40,000 | 50,000 | 0 |
| 11 lakh | 65,000 | 50,000 | 15,000 | 50,000 | 65,000 | 0 |
| 12 lakh | 80,000 | 60,000 | 20,000 | 60,000 | 80,000 | 0 |
| 16 lakh | 1,70,000 | 1,20,000 | 50,000 | 0 | 50,000 | 1,20,000 |
| 20 lakh | 2,90,000 | 2,00,000 | 90,000 | 0 | 90,000 | 2,00,000 |
| 24 lakh | 4,10,000 | 3,00,000 | 1,10,000 | 0 | 1,10,000 | 3,00,000 |
| 50 lakh | 11,90,000 | 10,80,000 | 1,10,000 | 0 | 1,10,000 | 10,80,000 |
The revised tax regime for FY 2025-26 brings significant relief to middle-class taxpayers, eliminating tax liability for individuals earning up to โน12 lakh. The new slab structure ensures progressive taxation, reducing the burden on lower-income groups while maintaining higher tax rates for higher earners. Taxpayers should review these changes carefully to optimize their tax planning.
Tags: new income tax slabs, revised tax slabs 2025, tax benefits 2025, new tax regime India, income tax savings
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