⌖ Utility / Direct Tax
Rates of Income Tax.
Slab rates, surcharge, cess and rebate for FY 2025-26: Old vs New regime.
As of
Finance Act, 2024, applicable from 1 April 2025
⌖ Context
Income tax slab structure for FY 2025-26 (AY 2026-27). The new tax regime under Section 115BAC is the default. The old regime is available only on a positive opt-in via Form 10-IEA for taxpayers with business / professional income (and via the return itself for salaried). Rebate under Section 87A is available under both regimes within the thresholds shown. Health & education cess at 4% applies on tax plus surcharge.
New regime (default), Section 115BAC: all individual taxpayers
| Income slab (₹) | Rate |
|---|---|
| Up to 3,00,000 | Nil |
| 3,00,001 – 7,00,000 | 5% |
| 7,00,001 – 10,00,000 | 10% |
| 10,00,001 – 12,00,000 | 15% |
| 12,00,001 – 15,00,000 | 20% |
| Above 15,00,000 | 30% |
Standard deduction for salaried / pensioners is ₹75,000 under the new regime. Rebate u/s 87A: full tax rebate if total income ≤ ₹7,00,000 (max ₹25,000).
Old regime: resident individual below 60
| Income slab (₹) | Rate |
|---|---|
| Up to 2,50,000 | Nil |
| 2,50,001 – 5,00,000 | 5% |
| 5,00,001 – 10,00,000 | 20% |
| Above 10,00,000 | 30% |
Standard deduction ₹50,000 (salaried). Rebate u/s 87A: full tax rebate if total income ≤ ₹5,00,000 (max ₹12,500).
Old regime: resident senior citizen (60 to < 80)
| Income slab (₹) | Rate |
|---|---|
| Up to 3,00,000 | Nil |
| 3,00,001 – 5,00,000 | 5% |
| 5,00,001 – 10,00,000 | 20% |
| Above 10,00,000 | 30% |
Old regime: resident super senior citizen (80+)
| Income slab (₹) | Rate |
|---|---|
| Up to 5,00,000 | Nil |
| 5,00,001 – 10,00,000 | 20% |
| Above 10,00,000 | 30% |
Surcharge on income tax: individuals / HUF / AOP / BOI
| Total income (₹) | Surcharge (old regime) | Surcharge (new regime) |
|---|---|---|
| Up to 50 lakh | Nil | Nil |
| 50 lakh – 1 crore | 10% | 10% |
| 1 crore – 2 crore | 15% | 15% |
| 2 crore – 5 crore | 25% | 25% |
| Above 5 crore | 37% | 25% |
Marginal relief is available where additional surcharge exceeds the increase in income over the threshold. Surcharge on capital gains under 111A / 112 / 112A and on dividend income is capped at 15% in both regimes.
Domestic companies: income tax rate
| Category | Rate |
|---|---|
| Turnover ≤ 400 Cr in FY 2023-24 | 25% |
| Other domestic companies | 30% |
| Section 115BAA (concessional, no exemptions) | 22% |
| Section 115BAB (new manufacturing co. set up before 31.03.2024) | 15% |
| MAT (Section 115JB) | 15% of book profit |
Surcharge: 7% (income 1Cr–10Cr), 12% (>10Cr). For 115BAA / 115BAB: flat 10% surcharge. Cess 4% on all.
Other entities
| Entity | Rate |
|---|---|
| Partnership firm / LLP | 30% |
| Local authority | 30% |
| Co-operative society (slab 0-10K / 10-20K / >20K) | 10% / 20% / 30% |
| Co-operative society (Section 115BAD, opted) | 22% |
| Co-operative society (Section 115BAE, new manufacturing) | 15% |
| Foreign company | 35% |
Surcharge for firms/LLPs/local authorities: 12% if income > 1Cr. Foreign co.: 2% (1Cr–10Cr), 5% (>10Cr). Cess 4% on all.
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