Income Tax Slab Rates FY 2025-26 (AY 2026-27)
Created & Published by: Bhavik Bhoot
Strategic Tax, GST & Corporate Compliance Advisory
Published: March 2026
This comprehensive guide explains income tax slab rates for FY 2025-26 including old vs new regime, deductions, surcharge, audit limits and tax planning insights.
₹7L Rebate
No tax liability under new regime
Lower Rates
Reduced tax structure
₹10 Cr Audit Limit
Higher threshold for businesses
Income Tax Slab – New Regime
| Income | Rate |
|---|
| Up to ₹3L | Nil |
| ₹3L–₹6L | 5% |
| ₹6L–₹9L | 10% |
| ₹9L–₹12L | 15% |
| ₹12L–₹15L | 20% |
| Above ₹15L | 30% |
Income Tax Slab – Old Regime
| Income | Rate |
|---|
| Up to ₹2.5L | Nil |
| ₹2.5L–₹5L | 5% |
| ₹5L–₹10L | 20% |
| Above ₹10L | 30% |
4. Deductions under Chapter VI-A
Available in Old Regime
- 80C – ₹1.5 lakh
- 80D – Medical Insurance
- 80G – Donations
- 80E – Education Loan Interest
- 80TTA / 80TTB – Interest
Allowed in New Regime
- Employer NPS Contribution (80CCD(2))
- Standard Deduction ₹50,000
- Family Pension Deduction
5. Comparison – Old vs New Regime
| Particulars | Old Regime | New Regime |
|---|
| Tax Rates | Higher | Lower |
| Deductions | Allowed | Restricted |
| Best For | High investments | Salaried / low deductions |
6. Tax for Other Assessees
Firms / LLP
Flat 30% + surcharge
Domestic Company
- 25% / 30% normal
- 22% u/s 115BAA
- 15% for new manufacturing
Co-operative Societies
22% u/s 115BAD optional
7. Surcharge Rates
| Income | Surcharge |
|---|
| ₹50L – ₹1Cr | 10% |
| ₹1Cr – ₹2Cr | 15% |
| ₹2Cr – ₹5Cr | 25% |
| Above ₹5Cr | 37% (Old), 25% (New cap) |
8. Tax Audit Limits
- ₹1 Crore – Normal business
- ₹10 Crore – Digital transactions
- ₹50 Lakh – Professionals
9. Which Regime is Better?
- Salaried with deductions → Old Regime
- Minimal investments → New Regime
- High income individuals → Case-specific
10. Strategic Tax Planning Insights
- Compare both regimes annually
- Use NPS & insurance smartly
- Plan capital gains
- Track AIS mismatches
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Conclusion
Selecting the appropriate tax regime requires a structured comparison based on income, deductions and financial objectives. A well-planned approach ensures optimal tax efficiency and compliance.
For professional assistance, consult a
Tax Consultant in Mumbai.
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