No income tax up to Rs 12 lakh under the new regime from FY 2025-26

The Union Budget 2025-26 restructured the new personal income tax regime so that no income tax is payable up to a total income of Rs 12 lakh (other than special-rate income such as capital gains), and up to Rs 12.75 lakh for salaried taxpayers after the Rs 75,000 standard deduction. The nil-tax outcome is produced by a combination of the revised slab rates and an enhanced rebate. The first slab is 0 to Rs 4 lakh at nil.

Applies to the new regime only; the old regime slabs were not changed by this announcement. The Government estimated about Rs 1 lakh crore of direct tax revenue forgone.

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