INCOME TAX RATES

ASSESSMENT YEAR 2025-2026

RELEVANT TO FINANCIAL YEAR 2024-2025
The normal tax rates applicable to an resident individual will depend on the age of the
individual.
For the purpose of ascertainment of the applicable tax slab, an individual can be classified as
follows:
• Individual below the age of 60 year, i.e. born on or after 01-04-1965
• Individual of the age of 60 years or above at any time during the year but below the age of
80 year, i.e. born during 01-04-1945 to 31-03-1965
• Individual of the age of 80 years or above at any time during the year, i.e. born before 01-
04-1945

The Finance Act 2024 has amended the provisions of Section 115BAC w.e.f AY 2024-25
to make new tax regime the default tax regime for the assessee being an Individual,
HUF, AOP (not being co-operative societies), BOI or Artificial Juridical Person.
However, the eligible taxpayers have the option to opt out of new tax regime and choose
to be taxed under old tax regime. The old tax regime refers to the system of income tax
calculation and slabs that existed before the introduction of the new tax regime. In the
old tax regime, taxpayers have the option to claim various tax deductions and
exemptions.
In "non-business cases", option to choose the regime can be exercised every year
directly in the ITR to be filed on or before the due date specified under section 139(1).
In case of eligible taxpayers having income from business and profession, new tax
regime is default regime. If assessee wants to opt out of new tax regime, they can furnish
Form-10-IEA on or before the due date u/s 139(1) for furnishing the return of income.
Also, for the purpose of withdrawal of such option i.e. opting out of old tax regime shall
also be done by way of furnishing Form No.10-IEA. However, option to switch to old
tax regime and withdraw the option in any subsequent AY is available only once in
lifetime for eligible taxpayers having income from business and profession.

I. In case of an Individual (resident or non-resident) or HUF or Association of Person or

Body of Individual or any other artificial juridical person
Old Tax Regime Slab Rate FY 2024-25 New Tax Regime Slab Rate FY 202

Net Taxable Income Tax Rate *Surcharge Net Taxable Income Tax Rate
 Up to ₹ 2,50,000 Nil Nil Up to ₹ 3,00,000 Nil

₹ 2,50,001 to Rs 5% above ₹ 2,50,000 ₹ 3,00,001 to Rs 5% above ₹ 3,00,000

5,00,000 7,00,000

₹ 7,00,001 to ₹ ₹ 20,000 + 10%

10,00,000 above ₹ 7,00,000

₹ 10,00,001 to ₹ ₹ 50,000 + 15%

12,00,000 above ₹ 10,00,000

₹ 5,00,001 to ₹ ₹ 12,500 + 20% Nil ₹ 12,00,001 to ₹ ₹ 80,000 + 20%

10,00,000 above ₹ 5,00,000 15,00,000 above ₹ 12,00,000

₹ 10,00,001 to ₹ ₹ 1,12,500 + 30% Nil ₹ 15,00,001 to ₹ ₹ 1,40,000 + 30%

50,00,000 above ₹ 10,00,000 50,00,000 above ₹ 15,00,000

₹ 50,00,001 to ₹ ₹ 1,12,500 + 30% 10% ₹ 50,00,001 to ₹ ₹ 1,40,000 + 30%

1,00,00,000 above ₹ 10,00,000 1,00,00,000 above ₹ 15,00,000

₹ 1,00,00,001 to ₹ ₹ 1,12,500 + 30% 15% ₹ 1,00,00,001 to ₹ ₹ 1,40,000 + 30%

2,00,00,000 above ₹ 10,00,000 2,00,00,000 above ₹ 15,00,000

₹ 2,00,00,001 to ₹ ₹ 1,12,500 + 30% 25% Above ₹ 2,00,00,000 ₹ 1,87,500 + 30%

5,00,00,000 above ₹ 10,00,000 above ₹ 15,00,000

Above ₹ 5,00,00,000 ₹ 1,12,500 + 30% 37%

above ₹ 10,00,000

Less: Rebate under Section 87A [see Note]

*Add: Surcharge and Health & Education Cess [see Note]

II. In case of a resident or non-resident senior citizen (who is 60 years or more at any
time during the previous year but less than 80 years on the last day of the previous year)

Old Tax Regime Slab Rate FY 2023-24 New Tax Regime Slab Rate FY 202

Net Taxable Income Tax Rate *Surcharge Net Taxable Income Tax Rate

Up to ₹ 3,00,000 Nil Nil Up to ₹ 3,00,000 Nil

 ₹ 3,00,001 to Rs 5% above ₹ 3,00,000 Nil ₹ 3,00,001 to Rs 5% above ₹ 3,00,000
5,00,000 7,00,000

₹ 7,00,001 to ₹ ₹ 20,000 + 10%

10,00,000 above ₹ 7,00,000

₹ 10,00,001 to ₹ ₹ 50,000 + 15%

12,00,000 above ₹ 10,00,000

₹ 5,00,001 to ₹ ₹ 10,000 + 20% Nil ₹ 12,00,001 to ₹ ₹ 80,000 + 20%

10,00,000 above ₹ 5,00,000 15,00,000 above ₹ 12,00,000

₹ 10,00,001 to ₹ ₹ 1,12,500 + 30% Nil ₹ 15,00,001 to ₹ ₹ 1,40,000 + 30%

50,00,000 above ₹ 10,00,000 50,00,000 above ₹ 15,00,000

₹ 50,00,001 to ₹ ₹ 1,12,500 + 30% 10% ₹ 50,00,001 to ₹ ₹ 1,40,000 + 30%

1,00,00,000 above ₹ 10,00,000 1,00,00,000 above ₹ 15,00,000

₹ 1,00,00,001 to ₹ ₹ 1,12,500 + 30% 15% ₹ 1,00,00,001 to ₹ ₹ 1,40,000 + 30%

2,00,00,000 above ₹ 10,00,000 2,00,00,000 above ₹ 15,00,000

₹ 2,00,00,001 to ₹ ₹ 1,12,500 + 30% 25% Above ₹ 2,00,00,000 ₹ 1,40,000 + 30%

5,00,00,000 above ₹ 10,00,000 above ₹ 15,00,000

Above ₹ 5,00,00,000 ₹ 1,12,500 + 30% 37%

above ₹ 10,00,000

Less: Rebate under Section 87A [see Note]

*Add: Surcharge and Health & Education Cess [see Note]

III. In case of a resident or non-resident super senior citizen (who is 80 years or above at
any time during the previous year)

Old Tax Regime Slab Rate FY 2023-24 New Tax Regime Slab Rate FY 202

Net Taxable Income Tax Rate *Surcharge Taxable Income Tax Rate

Up to ₹ 5,00,000 Nil Nil Up to ₹ 3,00,000 Nil

 ₹ 3,00,001 to Rs 5% above ₹ 3,00,000
7,00,000

₹ 7,00,001 to ₹ ₹ 20,000 + 10%

10,00,000 above ₹ 7,00,000

₹ 10,00,001 to ₹ ₹ 50,000 + 15%

12,00,000 above ₹ 10,00,000

₹ 5,00,001 to ₹ 20% above ₹ Nil ₹ 12,00,001 to ₹ ₹ 80,000 + 20%

10,00,000 5,00,000 15,00,000 above ₹ 12,00,000

₹ 10,00,001 to ₹ ₹ 1,12,500 + 30% Nil ₹ 15,00,001 to ₹ ₹ 1,40,000 + 30%

50,00,000 above ₹ 10,00,000 50,00,000 above ₹ 15,00,000

₹ 50,00,001 to ₹ ₹ 1,12,500 + 30% 10% ₹ 50,00,001 to ₹ ₹ 1,40,000 + 30%

1,00,00,000 above ₹ 10,00,000 1,00,00,000 above ₹ 15,00,000

₹ 1,00,00,001 to ₹ ₹ 1,12,500 + 30% 15% ₹ 1,00,00,001 to ₹ ₹ 1,40,000 + 30%

2,00,00,000 above ₹ 10,00,000 2,00,00,000 above ₹ 15,00,000

₹ 2,00,00,001 to ₹ ₹ 1,12,500 + 30% 25% Above ₹ 2,00,00,000 ₹ 1,40,000 + 30%

5,00,00,000 above ₹ 10,00,000 above ₹ 15,00,000

Above ₹ 5,00,00,000 ₹ 1,12,500 + 30% 37%

above ₹ 10,00,000

*Add: Surcharge and Health & Education Cess [see Note]

*Note:
1. The enhanced surcharge of 25% & 37%, as the case may be, is not levied, from income
chargeable to tax under sections 111A, 112, 112A and Dividend Income. Hence, the
maximum rate of surcharge on tax payable on such incomes shall be 15%, except when the
income is taxable under section 115A, 115AB, 115AC, 115ACA and 115E.
2. **Rebate u/s 87A: Resident Individuals are also eligible for a Rebate of up to 100% of
income tax subject to a maximum limit depending on tax regimes as under:
Rebate under Section 87A

Total Old Tax Regime New Tax Regime

 Income

Up to Rs. 5 Tax rebate up to Rs.12,500 is applicable for resident Tax rebate up to Rs.25,000 is applicab
Lakh individuals if the total income does not exceed Rs individuals if the total income does no
5,00,000 (not applicable for NRIs 7,00,000 (not applicable for NRIs

From 5 NIL
Lakhs to 7
Lakhs

***Note : Health & Education cess @ 4% to be paid on the amount of income tax plus
Surcharge (if any) in both the regimes.
Marginal relief can be claimed from surcharge if the amount of income earned exceeding ₹
50 lakhs, ₹ 1 crore, ₹ 2 crore or ₹ 5 crores respectively as under:
Net Income Range Marginal Relief

Exceeds Does not

(Rs.) exceed (Rs.)

50 Lakh 1 Crore Amount payable as income tax and surcharge shall not exceed the total amount
income tax on total income of Rs 50 Lakh by more than the amount of income t
Rs 50 Lakhs

1 Crore 2 Crore Amount payable as income tax and surcharge shall not exceed the total amount
income-tax on total income of Rs. 1 crore by more than the amount of income t
Rs. 1 crore

2 Crore 5 Crore Amount payable as income tax and surcharge shall not exceed the total amount
income-tax on total income of Rs. 2 crore by more than the amount of income t
Rs. 2 crore

5 Crore ---- Amount payable as income tax and surcharge shall not exceed the total amount
income-tax on total income of Rs. 5 crore by more than the amount of income t
Rs. 5 crore.