Income Tax Calculation: Everything you need to know for FY 2025-26

No tax on income up to Rs 12 lakh under the new tax regime.
Salaried taxpayers: No tax up to Rs 12.75 lakh (including Rs 75,000 standard deduction).

Income up to Rs 4 lakh – Nil
Rs 4 lakh - Rs 8 lakh – 5%
Rs 8 lakh - Rs 12 lakh – 10%

Rs 12 lakh - Rs 16 lakh – 15%
Rs 16 lakh - Rs 20 lakh – 20%
Rs 20 lakh - Rs 24 lakh – 25%
Above Rs 24 lakh – 30%

Taxpayers earning up to Rs 12 lakh will pay zero tax due to slab reductions and rebate.
The new regime will provide more disposable income for middle-class taxpayers.

For Rs 12 lakh: Tax reduced to Rs 60,000 from Rs 80,000 – a savings of Rs 80,000.
For Rs 16 lakh: Tax reduced to Rs 1.2 lakh from Rs 1.7 lakh – a savings of Rs 50,000.

For Rs 20 lakh income: Tax reduced to Rs 2 lakh from Rs 2.9 lakh – a savings of ₹90,000.
For Rs 24 lakh income: Tax reduced to Rs 3 lakh from Rs 4.1 lakh – a savings of ₹1.1 lakh.

Income of up to Rs 1 lakh per month (excluding capital gains) is now tax-free.
Marginal tax relief applies for those slightly exceeding Rs 12 lakh.