New Updates: Effective 1st April 2026
Starting from the financial year commencing 1st April 2026, the following additional changes are implemented:
- Zero Tax Threshold: For resident individuals, the effective tax-free limit (with rebates) is now confirmed at ₹12.75 Lakh (including standard deduction).
- Mandatory E-Verification: All returns filed after April 2026 must be e-verified within 30 days.
- New ITR-V Format: Simplified single-page verification form introduced for AY 2026-27.
New Tax Regime Slabs (FY 2025-26 & 2026-27)
The New Tax Regime is the default choice for individuals. For FY 2025-26, the threshold for Nil tax has been optimized to provide significant relief to the middle class.
| Income Range (₹) | Tax Rate |
|---|---|
| 0 – 4,00,000 | Nil |
| 4,00,001 – 8,00,000 | 5% |
| 8,00,001 – 12,00,000 | 10% |
| 12,00,001 – 16,00,000 | 15% |
| 16,00,001 – 20,00,000 | 20% |
| 20,00,001 – 24,00,000 | 25% |
| Above 24,00,000 | 30% |
Key Changes in 2025
- Standard Deduction: Increased to ₹75,000 for salaried individuals under the new regime.
- Rebate u/s 87A: Full tax rebate for income up to ₹12,00,000 (Resident Individuals).
- Surcharge: Highest surcharge rate capped at 25% for income exceeding ₹5 Crore.
New ITR Forms & Formats
The 2025 assessment year introduces streamlined forms to reduce the filing time. Here are the common formats: