Income Tax Slabs FY 2025-26: Zero Tax Up to ₹12.75 Lakh – Budget 2025 Highlights
The Union Budget 2025 (presented February 1, 2025) delivered major relief for middle-class taxpayers, making incomes up to ₹12 lakh tax-free under the new regime (or ₹12.75 lakh for salaried with ₹75,000 standard deduction). This benefits ~85% of filers, per experts. Old regime slabs remain unchanged, but the new regime's revised structure (with a 25% slab up to ₹24 lakh) favors those with fewer deductions. Use our updated Income Tax Calculator to compare regimes and estimate savings.
New Regime Tax Slabs (Post-Budget 2025)
Applies to income above ₹12 lakh (after rebate u/s 87A):
- ₹0 – ₹4,00,000: 0% (exemption + rebate)
- ₹4,00,001 – ₹8,00,000: 5%
- ₹8,00,001 – ₹12,00,000: 10%
- ₹12,00,001 – ₹16,00,000: 15%
- ₹16,00,001 – ₹20,00,000: 20%
- ₹20,00,001 – ₹24,00,000: 25% (new slab)
- Above ₹24,00,000: 30%
Key Changes & Who Benefits
Budget 2025 hiked the standard deduction to ₹75,000 (from ₹50,000) and extended updated ITR filing to 4 years. Seniors get TDS relief on interest (up to ₹1 lakh, doubled from ₹50,000).
- Middle-Class Salaried (₹10–15L income): Save up to ₹17,500 annually in new regime.
- High-Deduction Filers: Stick to old regime for 80C (₹1.5L), 80D (₹25K–₹50K), home loan interest (₹2L).
- NPS Contributors: Extra ₹50,000 deduction u/s 80CCD(1B) extended to NPS Vatsalya.
Example: ₹15 Lakh Salaried Income
New Regime: After ₹75,000 standard deduction (taxable ₹14.25L), tax works out to ₹97,500. Old Regime with no deductions beyond the ₹50,000 standard deduction (taxable ₹14.5L): ₹2,57,400. Savings: ₹1,59,900.
Pro Tip: File by July 31, 2026 (AY 2026-27) with new disclosures. Consult a CA for personalized advice. Calculate tax →