Income Tax Slabs Budget 2025: Live Updates & Expert Analysis
No income tax payable on an annual income of up to Rs 12 lakh under the new tax regime.
In the latest update from the Union Budget 2025-26, Finance Minister Nirmala Sitharaman announced a welcome relief for middle-class taxpayers. Under the new tax regime, no income tax will be levied on annual incomes of up to Rs 12,00,000. For salaried persons, factoring in the standard deduction, this relief extends to incomes up to Rs 12.75 lakh.
The revised income tax slabs not only aim to ease the financial burden on the middle class but also pave the way for a simplified and transparent tax system.
“As visualized by us and strongly stressed on multiple channels and in various mediums, the middle class has been given a welcome relief with no income tax up to Rs. 12 lakhs income. For salaried persons, it will go up to Rs. 12.75 lakhs by factoring in the standard deduction.”— Manoranjan Sharma, Chief Economist at Infomerics Ratings
Revised Income Tax Slabs 2025-26
Post the budget announcement by FM Nirmala Sitharaman, the proposed tax regime has been structured as follows:
| Income Range | Tax Rate |
|---|---|
| Zero to Rs 4,00,000 | No Tax |
| Rs 4,00,000 to Rs 8,00,000 | 5% |
| Rs 8,00,001 to Rs 12,00,000 | 10% |
| Rs 12,00,001 to Rs 16,00,000 | 15% |
| Rs 16,00,001 to Rs 20,00,000 | 20% |
| Rs 20,00,001 to Rs 24,00,000 | 25% |
| Above Rs 24,00,000 | 30% |