Direct Tax Related Changes
Tax Rate for Assessment Year 2026-27 and Financial Year 2025-26
Individuals (New Regime – Revised Slabs)
- Income up to ₹4,00,000 – No tax
- ₹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%
Old Regime
- Income up to ₹2,50,000 – No tax
- ₹2,50,001 – ₹5,00,000 – 5%
- ₹5,00,001 – ₹10,00,000 – 20%
- Above ₹10,00,000 – 30%
Business Entities
- Partnership Firm – 30% on all income
- Domestic Companies
- Turnover < ₹400 crore in FY 2023-24: 25%
- Other Domestic Companies: 30%
- Foreign Companies: 35%
No Income Tax Payable for Income Up to ₹12 Lakhs in 2025-26
The new tax scheme allows individuals earning up to ₹12.75 lakhs (including a ₹75,000 standard deduction for salaried employees) to pay zero tax under the new regime.
Example Table (Tax Savings)
| Income | Tax 24-25 | Tax 25-26 | Tax Savings |
|---|---|---|---|
| ₹10,00,000 | ₹52,000 | ₹0 | ₹52,000 |
| ₹12,00,000 | ₹83,200 | ₹0 | ₹83,200 |
| ₹15,00,000 | ₹1,45,600 | ₹1,09,200 | ₹36,400 |
| ₹20,00,000 | ₹3,01,600 | ₹2,08,000 | ₹93,600 |
| ₹25,00,000 | ₹4,57,600 | ₹3,43,200 | ₹1,14,400 |
Marginal Relief Provision
Ensures taxpayers do not pay excessive taxes on income marginally above ₹12 lakhs.
GST Amendments
Key changes include allowing Input Service Distributors (ISDs) to distribute ITC on RCM under IGST, removing GST on vouchers, and stricter compliance for ITC reversal.
Contact Information:
CA Aman Rajput
Contact: 8209604735
Email: aman.rajput@mail.ca.in
