In India, income tax is not the same for everyone. The government divides income into slabs (ranges), and each slab has a different tax rate. This is called the income tax slab system.
The more you earn, the higher the rate — but only on the portion above each limit, not on your entire income. This guide covers every slab for AY 2025-26 in simple language.
The New Tax Regime is now the default option. It offers lower tax rates but does not allow most deductions like 80C, HRA, home loan interest, etc.
| Income Range | Tax Rate (New Regime) |
|---|---|
| Up to ₹3,00,000 | NIL — Zero Tax |
| ₹3,00,001 to ₹7,00,000 | 5% |
| ₹7,00,001 to ₹10,00,000 | 10% |
| ₹10,00,001 to ₹12,00,000 | 15% |
| ₹12,00,001 to ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
The Old Regime has higher rates but lets you claim deductions like 80C, HRA, home loan interest, etc. to reduce your taxable income. You must actively choose it while filing ITR.
| Income Range | Tax Rate |
|---|---|
| Up to ₹2,50,000 | NIL |
| ₹2,50,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
| Income Range | Tax Rate |
|---|---|
| Up to ₹3,00,000 | NIL |
| ₹3,00,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
| Income Range | Tax Rate |
|---|---|
| Up to ₹5,00,000 | NIL |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
On top of basic tax, high earners pay a surcharge. Everyone also pays 4% Health & Education Cess on their tax amount.
| Income Range | Surcharge Rate |
|---|---|
| Up to ₹50 Lakh | NIL |
| ₹50 Lakh to ₹1 Crore | 10% |
| ₹1 Crore to ₹2 Crore | 15% |
| ₹2 Crore to ₹5 Crore | 25% |
| Above ₹5 Crore | 37% (Old) / 25% (New) |
Not sure how much tax you owe? Use KotaTaxPro's Tax Reverse Engine to calculate your exact tax liability for AY 2025-26 in seconds. Supports Old & New Regime, all assessee types.
Try Free Tax Calculator →It depends on your deductions. If your total deductions (80C + HRA + home loan etc.) exceed ₹3.75 lakh, Old Regime may save more. Otherwise, New Regime is simpler and usually better.
Under the New Regime, Section 87A rebate brings your tax to zero if income is up to ₹7 lakh. If you are salaried, the effective zero-tax limit is ₹12,75,000.
The last date for most individuals is 31st July 2025. For businesses requiring audit, it is 31st October 2025.
You can file a belated return till 31st December 2025 with a late fee of ₹5,000 (₹1,000 if income is below ₹5 lakh).