Income Tax Slab Rate for Financial Year 2025-26

Summary: For the P.Y. 2025-26, the income tax slab rates differ based on age, with distinct provisions for individuals below 60 years, between 60 and 80 years, and those above 80 years. Under the old regime, individuals below 60 years are taxed starting at 5% for incomes between Rs. 2.5-5 lakhs, with higher rates for incomes exceeding Rs. 10 lakh. Senior citizens (60-80 years) enjoy a lower threshold for tax rates, starting at Rs. 3 lakh. Individuals over 80 years benefit from a higher exemption limit, with taxes starting at Rs. 5 lakh. Surcharges apply to income above Rs. 50 lakh, with varying rates from 10% to 37% depending on the income level. The new regime, under section 115 BAC, offers a progressive tax rate, starting at 5% for income exceeding Rs. 4 lakh and increasing to 30% for incomes above Rs. 24 lakh. Additionally, the rates for co-operative societies and firms are outlined, with specific surcharges depending on the income thresholds. Domestic companies with a turnover exceeding Rs. 400 crore are taxed at 25%, while others are taxed at 30%. For foreign companies, the tax rate varies based on income sources, with surcharges applying at higher income levels. The tax system incorporates surcharges to prevent excessive tax burdens at higher income levels.

Applicable Tax Rates for P.Y 2025-26 i.e. Financial Year 2025-26

Under Old Regime

• In case of every individual having age of < 60 Years, HUF or AOP or BOI, whether incorporated or not, or every AJP

Rates of Income – Tax

• In case of every individual, being a resident of India, having age of > 60 years, < 80 years

Rates of Income – Tax

• In case of every individual, being a resident in India, having age > 80 years

Rates of Income – Tax

Surcharge on Income – Tax

The amount of income- tax computed above shall be increased by a surcharge

In case of every Individual or HUF or AOP or BOI whether incorporated or not, or every AJP referred to in sub-clause (vii) of clause (31) of section 2 of the income – tax act,

Provided– In case where the total income includes any income by way of dividend or income under the provision of section 111A,112 & 112A of the Income- Tax Act, the rate of surcharge on the amt. of IT computed in respect of that part of income shall be < 15%

Provided further– In case of AOP consisting of any companies as its member, the rate of surcharge on the amt. of IT shall be < 15%.

Provided also– In case of persons mentioned above having total income exceeding, –

• 50 LAKH but < 1CR, total amt. payable as IT and surcharge on such incomes shall not exceed the sum of total amt. payable as IT on a total income of 50LAKH and the amt. of income that exceeds 50LAKH.
• 1CR but < 2CR total amt. payable as IT and surcharge on such incomes shall not exceed the total amt. payable as IT and surcharge on a total income of 1CR more than the amt. of income that exceeds 1CR.
• 2CR but < 5CR total amt. payable as IT and surcharge on such incomes shall not exceed the total amt. payable as IT and surcharge on a total income of 2CR more than the amt. of income that exceeds 2CR.
• 5CR total amt. payable as IT and surcharge on such incomes shall not exceed the total amt. payable as IT and surcharge on a total income of 5CR more than the amt. of income that exceeds 5CR.

Under New Regime (Sec 115 BAC)

In case of every co-operative society, –

 Surcharge on IT

Provided- In case of every co-operative society having total income > 1CR but < 10CR the total amt. payable as IT and surcharge on such income shall not exceed total amt. payable as IT on a total income of 1CR more than the amt. of income that >1CR.

Provided further- In case of every co-operative society having a total income >10CR the total amt. payable as IT and surcharge on such IT shall not exceed total amt. payable as IT and surcharge on a total income of 10CR more than the amt. of income that exceeds 10CR.

In case of every firm, –

Provided- In case of every firm mentioned above having total income >1CR total income payable as IT and surcharge on such income shall not exceed the total amt. payable as IT on a total income of 1CR more than the amt. of income that > 1CR

In case of every local authority, –

ON THE WHOLE OF THE TOTAL INCOME   30%

Surcharge on IT

Provided- In case of every local authority mentioned above having total income > 1CR, the total amt. payable as IT and surcharge on such IT shall not exceed the total amt. payable as IT on an income of 1CR more than the amt. of IT >1CR

In the case of a company

1. In case of a domestic company, –

2. In case of a company other than a domestic company, –

(a) On so much of the total income as consist of, – 50%

• • Royalties received from govt. or an Indian concern in pursuance of an agreement made by it with the Govt. or Indian concern after the 31^st March, 1961 but before the 1^st April,1976
  • Fees for rendering technical services received from Govt. or an Indian concern in pursuance of an agreement made by it with the Govt. or an Indian concern after the 29 February,1964 but before the 1^st April,1976,and where such agreement has, in either case, been approved by the Central Govt.

(b) On the balance, if any, of the total income -35%

Surcharge on IT

• In case of every domestic company, –

(B) In case of every company other than domestic company, –

Provided- In case of every company having a total income >1cr but <10cr the total amt. payable as IT and surcharge on such income shall not exceed the total amt. payable as IT on a total income of 1cr more than the amt. of income that exceed 1cr

Provided further – In case of every company having a total income >10cr the total amt. payable as IT and surcharge on a total income of 10cr by more than the amt. of income that > 10cr.