Income Tax Act 2025 Guide
Detailed handbook on new slabs, tax regimes, forms, and compliance standards.
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bolt New Updates: Effective 1st April 2026
- Zero Tax Threshold: For resident individuals, effective tax-free limit (with rebates) is confirmed at ₹12.75 Lakh (including standard deduction).
- Mandatory E-Verification: All returns filed 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. Slabs have been optimized to offer middle-class taxpayers maximum savings.
| 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 assessment year introduces streamlined forms to reduce filing times. Check the list of standard formats below:
ITR-1 (SAHAJ)
For salaried individuals with total income up to ₹50 Lakh.
ITR-2
For individuals & HUFs not having income from business or profession.
ITR-3
For individuals and HUFs having income from proprietary business or profession.
ITR-4 (SUGAM)
For individuals, HUFs, and Firms having presumptive income from business/profession.
warning Disclaimer & Disclosure
The information provided on this page, including tax rates, slabs, and calculation logic, is for educational and general informational purposes only. While we strive to keep the data updated with the latest Finance Act amendments, tax laws are subject to frequent changes. This tool does not constitute professional tax, legal, or financial advice. FAS26 and its affiliates are not responsible for any financial decisions made based on this information. Always consult a qualified Chartered Accountant or Tax Practitioner before filing your returns.