Income-tax rates AY 2025-26 — Finance Act, 2025

Independently re-read on 2 September 2026

A second pass went back to the department’s text at the sources listed at the foot of this page and read these figures again. That check is recorded in the record itself as verified_on: 2026-09-02.

What this year’s reading did not reach

No cess is recorded: the section 2 record (5121260) is truncated - its text stops inside sub-section (9), the last visible words being "...by more than the amount of income that exceeds ten crore rupees:" - so the Health and Education Cess sub-section was not reachable, and the First Schedule record contains no mention of the cess either. No rebate under section 87A is recorded; it is in the Income-tax Act, not in this Finance Act. The First Schedule record (13064100) is also truncated: it runs through PART I and into PART II and contains no PART III, so nothing for the following year was read (and nothing from Part III has been filed here). The third source, 13072627, is THE THIRD SCHEDULE [see section 103(b)], which amends the First Schedule to the Customs Tariff Act and carries no income-tax rates.

Cess established on verification from the rendered page of section 2 of the Finance Act, 2025, whose sub-section (11) applies the Health and Education Cess at 4 per cent to sub-sections (1) to (3); sub-section (1) is the charge for this assessment year.

New regime: No cap on surcharge specific to this regime could be established from statutory text; see the note under 2026-27, where the Finance Act, 2025 First Schedule was read and found to make no mention of section 115BAC in Paragraph A of Part I.

Which Act set these rates

Act

Finance Act, 2025

Assessment year

2025-26

Income of the previous year

2024-25

What was read

the charging section and the First Schedule

The Act itself

Finance Act, 2025 in this library

Finance Act, 2025 charged income-tax for the assessment year commencing 1 April 2025. What it charged was the income of the previous year 2024-25. The two are a year apart and the difference matters: a table headed by the wrong one is useless.

The slabs

Old

individual (other than a resident of the age of sixty years or more), Hindu undivided family, association of persons, body of individuals, artificial juridical person

Maximum amount not chargeable to income-tax: Rs 2,50,000

Total income	Rate of income-tax
Up to Rs 2,50,000	Nil
Rs 2,50,001 – Rs 5,00,000	5%
Rs 5,00,001 – Rs 10,00,000	20%
Rs 10,00,001 and above	30%

Part I, Paragraph A of the First Schedule. The Schedule expresses the rates cumulatively: nil up to 250000; 5 per cent of the amount by which the total income exceeds 250000; 12500 plus 20 per cent of the amount by which it exceeds 500000; 112500 plus 30 per cent of the amount by which it exceeds 1000000.

New (section 115BAC(1A))

person whose income is chargeable to tax under sub-section (1A) of section 115BAC

Rate table: section 115BAC(1A), as put there by Act No. 15 of 2024, with effect from 1-4-2025, as the department's footnote to section 115BAC names it - that is the Finance (No. 2) Act, 2024, the second Finance Act of 2024. It put in a further table within sub-section (1A) governing "any previous year relevant to the assessment year beginning on ... the 1st day of April, 2025", leaving the earlier table to the assessment year beginning 1 April 2024.

Maximum amount not chargeable to income-tax: Rs 3,00,000

Total income	Rate of income-tax
Up to Rs 3,00,000	Nil
Rs 3,00,001 – Rs 7,00,000	5%
Rs 7,00,001 – Rs 10,00,000	10%
Rs 10,00,001 – Rs 12,00,000	15%
Rs 12,00,001 – Rs 15,00,000	20%
Rs 15,00,001 and above	30%

Rebate under section 87A: total income up to Rs 7,00,000; rebate up to Rs 25,000 — First proviso to section 87A, still at seven hundred thousand rupees and twenty-five thousand rupees for this year. The department's 2025 edition of section 87A carries the footnotes "Word 'twelve' shall be sub. for 'seven' by Act No. 07 of 2025, w.e.f. 1-4-2026" and "Word 'sixty' shall be sub. for 'twenty-five' by Act No. 07 of 2025, w.e.f. 1-4-2026", so the higher figures do not reach this assessment year. Clause (b) of the first proviso gives marginal relief above seven hundred thousand rupees; the second proviso caps the deduction at the income-tax payable at the section 115BAC(1A) rates.

Figure taken from the clause of section 2(2) substituting "three lakh rupees" for cases under section 115BAC(1A). Part I of this First Schedule contains no rate table for the section 115BAC option; that table is in section 115BAC of the Income-tax Act and was not among the sources.

Senior citizens, very senior citizens, and women

Only where the Act for this year set a separate threshold or a separate table. Where it did not, this page says so.

Resident senior citizens

first proviso to Paragraph A, Part I: resident individual of the age of sixty years or more but less than eighty years at any time during the previous year

Maximum amount not chargeable to income-tax: Rs 3,00,000

Total income	Rate of income-tax
Up to Rs 3,00,000	Nil
Rs 3,00,001 – Rs 5,00,000	5%
Rs 5,00,001 – Rs 10,00,000	20%
Rs 10,00,001 and above	30%

Resident very senior citizens

second proviso to Paragraph A, Part I: resident individual of the age of eighty years or more at any time during the previous year

Maximum amount not chargeable to income-tax: Rs 5,00,000

Total income	Rate of income-tax
Up to Rs 5,00,000	Nil
Rs 5,00,001 – Rs 10,00,000	20%
Rs 10,00,001 and above	30%

Resident women

This year’s record carries no separate table or threshold under this head.

Surcharge

Total income	Surcharge on the income-tax
Rs 50,00,000 – Rs 1,00,00,000	10%
Rs 1,00,00,000 – Rs 2,00,00,000	15%
Rs 2,00,00,000 – Rs 5,00,00,000	25%
Rs 5,00,00,000 and above	37%

Surcharge on income-tax under Paragraph A of Part I. Where the total income includes dividend income or income chargeable under section 111A, section 112 or section 112A, the rate of surcharge on the income-tax computed on that part of the income shall not exceed fifteen per cent.

Cess

Cess	Rate
Health and Education Cess	4%

Marginal relief

Part I contains marginal-relief provisos at each surcharge threshold, in the form: "the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of fifty lakh rupees by more than the amount of income that exceeds fifty lakh rupees".

Companies, firms, co-operative societies and local authorities

Reproduced in the Act’s own words, because these rates carry conditions a single percentage cannot.

Assessee	Rate as the Act states it
Domestic company	25 per cent of the total income where the total turnover or the gross receipt in the previous year 2022-23 does not exceed 400 crore rupees, and 30 per cent of the total income in any other case; surcharge 7 per cent where the total income exceeds 1 crore rupees but does not exceed 10 crore rupees, and 12 per cent where it exceeds 10 crore rupees
Foreign company	50 per cent on royalty and on fees for rendering technical services received under the agreements of the specified pre-1976 dates, and 35 per cent on the balance of the total income; surcharge 2 per cent where the total income exceeds 1 crore rupees but does not exceed 10 crore rupees, and 5 per cent where it exceeds 10 crore rupees
Firms and limited liability partnerships	30 per cent on the whole of the total income; surcharge 12 per cent where the total income exceeds 1 crore rupees (Paragraph C, Part I). Paragraph D applies the same 30 per cent and 12 per cent to a local authority.
Co-operative societies	10 per cent where the total income does not exceed 10000 rupees; 1000 rupees plus 20 per cent of the amount by which the total income exceeds 10000 rupees, where it exceeds 10000 but does not exceed 20000 rupees; 3000 rupees plus 30 per cent of the amount by which the total income exceeds 20000 rupees, where it exceeds 20000 rupees. Surcharge 7 per cent where the total income exceeds 1 crore rupees but does not exceed 10 crore rupees, and 12 per cent where it exceeds 10 crore rupees.
Local authorities	The Act’s text for this was not reached. No figure is recorded, and none has been supplied from another year.

What changed from the year before

Worked out by comparing this record with the one for the preceding assessment year in this collection. Where a figure is absent from either record, that is said rather than guessed.

Against assessment year 2024-25 (Finance Act, 2024 (No. 1 of 2024)): a regime described as ‘new (section 115BAC(1A))’ carries an exemption limit of Rs 3,00,000 this year; the previous record carries no limit under that name.
Against assessment year 2024-25 (Finance Act, 2024 (No. 1 of 2024)): the previous record’s ‘new (section 115BAC)’ limit of Rs 3,00,000 has no counterpart under that name this year.
Against assessment year 2024-25 (Finance Act, 2024 (No. 1 of 2024)): the old regime’s exemption limit is unchanged at Rs 2,50,000.
The top slab rate is unchanged at 30%.
The surcharge is unchanged: 4 tiers, topping out at 37%.
The cess is unchanged: Health and Education Cess 4%.
The company rates are stated differently this year; read both years’ wording rather than taking a single number from either.
The firm rate are stated differently this year; read both years’ wording rather than taking a single number from either.
The co-operative society rates are stated differently this year; read both years’ wording rather than taking a single number from either.
Neither record reaches the local authority rate.
The separate threshold for resident senior citizens is unchanged at Rs 3,00,000.
The separate threshold for resident very senior citizens is unchanged at Rs 5,00,000.

Sources

The Income Tax Department’s own records for this Act. These are the documents the figures above were read out of.

The department’s index of Finance Acts is at https://www.incometaxindia.gov.in/finance-acts.

The years either side

← AY 2024-25 · AY 2026-27 →

What this page is, and what it is not

The figures are the Finance Act’s own. Every rate, threshold and exemption on this page was taken out of the Income Tax Department’s own text of the Act that charged the year — the charging section and the First Schedule — and the records we read are linked under Sources on each year’s page. The writing around the figures is ours: the arrangement, the headings, the comparison with the year before and every sentence of explanation. Those are not the Act.

These tables are for orientation. The Act governs. A rate table is a finding aid, not the law. The Act, its First Schedule and the provisos in it decide what is payable, and a table cannot carry the provisos. If you are about to rely on a figure here — in a return, in a computation, in a reply to a notice — open the source linked on the year’s page and read the figure in the Act for yourself. Where a record did not reach a rate, this library says so rather than filling the gap.

Income-tax rates for assessment year 2025-26