FAQ
Any person whose income exceeds the basic exemption limit is required to file the income tax return.
Assessment year is the year starting from April 1 and ending with March 31. As the assessment of the income is completed in the subsequent financial year, the assessment year succeeds the financial year. E.g. For the financial year 2024-25, the assessment year is 2025-26.
New regime of taxation is the method of calculation of taxable income where only limited and specified deductions are allowed and the tax slabs and rates are different.
Old regime of taxation is the method of calculation of taxable income where numerous deductions and exemptions are available under the provisions of the Income Tax Act, 1961.
| Income Tax Slabs – New Tax Regime (FY 2024–25, AY 2025–26) | ||
|---|---|---|
| Income Slab | Rate of Income Tax | Income Tax Amount |
| Income up to ₹3,00,000 | NIL | NIL |
| ₹3,00,001 – ₹6,00,000 | 5% | ₹15,000 |
| ₹6,00,001 – ₹9,00,000 | 10% | ₹15,000 + 10% of income in this slab |
| ₹9,00,001 – ₹12,00,000 | 15% | ₹45,000 + 15% of income in this slab |
| ₹12,00,001 – ₹15,00,000 | 20% | ₹90,000 + 20% of income in this slab |
| Above ₹15,00,000 | 30% | ₹1,50,000 + 30% of income in this slab |
Note: If taxable income is below ₹7,00,000, a 100% rebate is applicable. So, effective tax becomes Zero.
| Income Tax Slabs – New Tax Regime (FY 2025–26, AY 2026–27) | ||
|---|---|---|
| Income Slab | Rate of Income Tax | Income Tax Amount |
| Income up to ₹4,00,000 | NIL | NIL |
| ₹4,00,001 – ₹8,00,000 | 5% | ₹20,000 |
| ₹8,00,001 – ₹12,00,000 | 10% | ₹20,000 + 10% of income in this slab |
| ₹12,00,001 – ₹16,00,000 | 15% | ₹60,000 + 15% of income in this slab |
| ₹16,00,001 – ₹20,00,000 | 20% | ₹1,20,000 + 20% of income in this slab |
| ₹20,00,001 – ₹24,00,000 | 25% | ₹2,00,000 + 25% of income in this slab |
| Above ₹24,00,000 | 30% | ₹3,00,000 + 30% of income in this slab |
Note: If taxable income is below ₹12,00,000, a 100% rebate is applicable. So, effective tax becomes Zero.
| Income Tax Slabs – Old Tax Regime (FY 2024–25 & FY 2025–26 | AY 2025–26 & AY 2026–27) | ||
|---|---|---|
| Income Slab | Rate of Income Tax | Income Tax Amount |
| Income up to ₹2,50,000 | NIL | NIL |
| ₹2,50,001 – ₹5,00,000 | 5% | ₹12,500 |
| ₹5,00,001 – ₹10,00,000 | 20% | ₹12,500 + 20% of income in this slab |
| Above ₹10,00,000 | 30% | ₹1,12,500 + 30% of income in this slab |
Note: If taxable income is below ₹5,00,000, a 100% rebate is applicable. So, effective tax becomes Zero under the Old Regime.
An individual can be a Resident, Non Resident or Not Ordinarily Resident.
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