Revised Slab Rates (FY 2025-26)
The new simplified regime has been recalibrated with progressive brackets: 5% (₹3L-₹7L), 10% (₹7L-₹10L), 15% (₹10L-₹12L), 20% (₹12L-₹15L), and 30% above ₹15 Lakhs. Combined with Section 87A rebate and ₹75k standard deduction, income up to ₹7.75 Lakhs is effectively 100% tax-free.
Standard Deduction increased to ₹75,000 for Salaried Assessees
Capital Gains & Angel Tax
Standardized holding periods for financial and non-financial assets. Long-Term Capital Gains (LTCG) on listed equities calibrated to 12.5% with the exemption ceiling elevated to ₹1.25 Lakhs per fiscal year. Complete abolition of the Angel Tax to encourage startup investment.
Angel Tax abolished for private investments in Indian startups
New Simplified Regime Tax Slab Rates (FY 2025-26 / AY 2026-27)
| Total Income Slab (₹) | Tax Rate | Applicability / Special Notes |
|---|---|---|
| Up to ₹ 3,00,000 | Nil (0%) | Basic exemption limit for all individual taxpayers |
| ₹ 3,00,001 to ₹ 7,00,000 | 5% | Covered under Section 87A rebate (Zero net tax if income ≤ ₹7L) |
| ₹ 7,00,001 to ₹ 10,00,000 | 10% | Lower rate encourages high compliance among middle earners |
| ₹ 10,00,001 to ₹ 12,00,000 | 15% | Substantial reduction compared to 20% in Old Regime |
| ₹ 12,00,001 to ₹ 15,00,000 | 20% | Provides relief for senior management and entrepreneurs |
| Above ₹ 15,00,000 | 30% | Surcharge applies as per total income thresholds |