The income tax slabs for individuals in India vary depending on the age group and whether you're opting for the old tax regime (with deductions and exemptions) or the new tax regime (without deductions but with lower rates). Here's a breakdown of both: 1. Income Tax Slabs under the New Tax Regime (FY 2023-24) The new tax regime offers reduced tax rates but does not allow most exemptions and deductions like HRA, standard deduction, or deductions under sections like 80C. For Individuals Below 60 Years of Age: Income up to ₹2.5 lakh – No tax ₹2,50,001 to ₹5 lakh – 5% ₹5,00,001 to ₹7.5 lakh – 10% ₹7,50,001 to ₹10 lakh – 15% ₹10,00,001 to ₹12.5 lakh – 20% ₹12,50,001 to ₹15 lakh – 25% Above ₹15 lakh – 30% For Senior Citizens (Aged 60 to 80 Years): Income up to ₹3 lakh – No tax ₹3,00,001 to ₹5 lakh – 5% ₹5,00,001 to ₹7.5 lakh – 10% ₹7,50,001 to ₹10 lakh – 15% ₹10,00,001 to ₹12.5 lakh – 20% ₹12,50,001 to ₹15 lakh – 25% Above ₹15 lakh – 30% For Super Senior Citizens (Aged 80 Years and Above): Income up to ₹5 lakh – No tax ₹5,00,001 to ₹10 lakh – 20% Above ₹10 lakh – 30% 2. Income Tax Slabs under the Old Tax Regime (FY 2023-24) The old tax regime offers tax exemptions and deductions like HRA, 80C, 80D, etc., but has higher tax rates. For Individuals Below 60 Years of Age: Income up to ₹2.5 lakh – No tax ₹2,50,001 to ₹5 lakh – 5% ₹5,00,001 to ₹10 lakh – 20% Above ₹10 lakh – 30% For Senior Citizens (Aged 60 to 80 Years): Income up to ₹3 lakh – No tax ₹3,00,001 to ₹5 lakh – 5% ₹5,00,001 to ₹10 lakh – 20% Above ₹10 lakh – 30% For Super Senior Citizens (Aged 80 Years and Above): Income up to ₹5 lakh – No tax ₹5,00,001 to ₹10 lakh – 20% Above ₹10 lakh – 30% Key Points to Remember: 1. Rebate under Section 87A: A rebate of ₹12,500 is available for individuals with income up to ₹5 lakh. This reduces their tax liability to zero (for those in this income bracket). 2. Health and Education Cess: An additional 4% cess is added to the income tax calculated, which is applied to the total tax payable. 3. Deductions under Old Regime: The old tax regime allows various deductions like 80C (up to ₹1.5 lakh), 80D (for health insurance premiums), and others that can help reduce taxable income. 4. No Deductions in the New Regime: The new tax regime does not allow any deductions except for NPS and EPF contributions, so it's beneficial for those with minimal deductions to opt for it. Which Regime to Choose? New Regime: Offers lower tax rates, but you cannot claim most exemptions and deductions. Old Regime: Allows deductions but has higher tax rates. If you have significant deductions or exemptions, it might be more beneficial. It all comes down to your financial situation, so it’s always a good idea to do a comparison based on your income and deductions.

Dear Client, Income tax brackets for individuals in India for Financial Year 2025-26 Assessment Year 2026-27). The New Tax Regime (default) and the Old Tax Regime (optional). New Tax Regime (Default) This is what we see as the standard tax regime for private taxpayers. It features low tax rates which in turn are accompanied by few deductions and exemptions. Tax Slabs and Rates for FY 2025-26: Taxable Income (in ₹) Tax Rate Up to ₹ 4,00,000 Nil From ₹ 4,00,001 to ₹ 8,00,000 5% From ₹ 8,00,001 to ₹ 12,00,000 10% From ₹ 12,00,001 to ₹ 16,00,000 15% From ₹ 16,00,001 to ₹ 20,00,000 20% From ₹ 20,00,001 to ₹ 24,00,000 25% Above ₹ 24,00,000 30% In this administration we see that which individuals have a net taxable income of up to 12,00,000 will be entitled to tax rebate also bringing the total tax liability down to zero at this income level. Also a standard deduction of 75,000 is made available to salaried individuals and pensioners. Old Tax Regime (Optional) This option is a choice which taxpayers have in this regime. We see higher taxes here but also see that it includes many deductions and exemptions like those under Section 80C (for investments in PPF, ELSS, etc., Section 80D (for health insurance premiums) and House Rent Allowance (HRA). Tax Slabs and Rates for FY 2025-26: For Individuals (below 60 years of age), HUF, and NRI: Taxable Income (in ₹) Tax Rate Up to ₹ 2,50,000 Nil From ₹ 2,50,001 to ₹ 5,00,000 5% From ₹ 5,00,001 to ₹ 10,00,000 20% Above ₹ 10,00,000 30% For Senior Citizens (60 to 80 years of age): Taxable Income (in ₹) Tax Rate Up to ₹ 3,00,000 Nil From ₹ 3,00,001 to ₹ 5,00,000 5% From ₹ 5,00,001 to ₹ 10,00,000 20% Above ₹ 10,00,000 30% For Super Senior Citizens (80 years and above): Taxable Income (in ₹) Tax Rate Up to ₹ 5,00,000 Nil From ₹ 5,00,001 to ₹ 10,00,000 20% Above ₹ 10,00,000 30% Note: The former tax system had a provision which gave out tax rebates as per Section 87A to individuals with a tax income of up to Rs 5,00,000 which in turn brought tax liability to zero. In what which regime you fall into depends on your income level and what tax savings deductions and breaks you plan to claim. I wish that my response has resolved your issues. Feel free to get in touch with us for more questions. Thank you!