New tax regime 2025: Income tax slab rates define

income tax slab rates define how much tax the individuals should pay for different income groups. The income tax slabs relaxation is the biggest relief brought in the financial year 2025 -26, greatly reducing the tax liability for many. Other added benefits come from higher rebate limit and TDS threshold limits. Key Highlights Tax slab changes under the new regime for FY 2025 -26: Income up to Rs. 12 lakhs made zero- tax due to an increased rebate of Rs. 60,000. Basic exemption limit extended ... The Indian government introduced significant changes to the income tax regime for FY 2025 -26, impacting millions of taxpayers. The Union Budget 2025 -26 simplified the tax structure, revised tax slabs, and introduced new deductions to benefit salaried individuals and pensioners. Budget 2025 Income tax slab changes: The new tax regime is the default tax regime . Currently, the highest tax rate of 30% is applicable from net taxable income above Rs 15 lakh. However, the new tax regime offers limited deductions to taxpayers. Read this story to understand the income tax slabs proposed for the upcoming financial year 2025 -26 and the current financial year 2024-25. The New Tax Vision: Goals and Direction The Income Tax Act, 2025 has been introduced to modernize India’s direct tax framework, focusing to simplify and streamline tax legislation, making it more accessible, transparent, and less prone to litigation. By adopting plain language and restructuring provisions logically, the Act aims to reduce taxpayer confusion and improve voluntary compliance. It also seeks to minimize disputes through clearer definitions and harmonized assessment timelines ...