New Income Tax Slabs for FY 2025-26: Finance Minister Nirmala Sitharaman, in her Budget 2025 speech, announced the latest income tax slabs for the financial year 2025-26. The revised tax structure is aimed at providing relief to middle-income earners while maintaining a progressive taxation system.
New Income Tax Slabs for FY 2025-26
- Income up to Rs 4 lakh – No tax
- Rs 4 lakh to Rs 8 lakh – 5%
- Rs 8 lakh to Rs 12 lakh – 10%
- Rs 12 lakh to Rs 16 lakh – 15%
- Rs 16 lakh to Rs 20 lakh – 20%
- Rs 20 lakh to Rs 24 lakh – 25%
- Above Rs 24 lakh – 30%
The updated slabs show a shift in the tax-free income threshold from Rs 3 lakh to Rs 4 lakh, which is expected to provide significant relief to low-income taxpayers. At the same time, the new structure ensures that higher-income individuals continue to contribute progressively.
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