Question 1

What are the new income tax slabs under the Income Tax Act 2025?

Accepted Answer

The new tax regime under section 202 of the Income Tax Act 2025 has six slabs. Income up to ₹4 lakh is fully exempt. Income from ₹4–8 lakh is taxed at 5%, ₹8–12 lakh at 10%, ₹12–16 lakh at 15%, ₹16–20 lakh at 20%, ₹20–24 lakh at 25%, and above ₹24 lakh at 30%. Rebate under section 87A gives zero tax for taxable income up to ₹4 lakh. These slabs apply from FY 2026-27 onwards.

Question 2

Is the new income tax regime the default, and can I switch?

Accepted Answer

The new income tax regime is the default for every taxpayer from FY 2026-27 onwards. Under section 202 of the Income Tax Act 2025, individuals and HUFs without business or professional income can opt out by filing Form 10-IE before the ITR due date. The Income Tax Department's comparison tool at incometax.gov.in shows which regime costs you less. Once you opt out, you cannot revert to the new regime in a later year unless your income source changes.

Question 3

Who gets Rebate 87A and how much tax does it save?

Accepted Answer

Rebate under section 87A of the Income Tax Act 2025 gives a full tax rebate, so your tax can be zero. You get it when your total taxable income after all deductions stays up to ₹4 lakh a year. A gross salary of ₹7 lakh, after the ₹75,000 standard deduction, leaves you with no tax under the new regime. Only resident individuals and HUFs can claim it, and only under the new regime. You claim it automatically with your ITR.

Question 4

What is advance tax, and who must pay it in FY 2026-27?

Accepted Answer

Advance tax is the tax you pay in instalments during the financial year, instead of one lump sum at filing time. Under section 210 of the Income Tax Act 2025, you must pay it when your estimated tax after TDS is more than ₹10,000 for the year. The FY 2026-27 instalments fall on 15 June, 15 September, 15 December, and 15 March. A short payment costs 1% interest a month under section 234C.

Question 5

What is the last date to file Income Tax Return for FY 2025-26?

Accepted Answer

For financial year 2025-26 (assessment year 2026-27), the due date to file an Income Tax Return without late filing penalty is 31 July 2026 for most individuals not requiring audit. Businesses and professionals who need audit must file by 31 October 2026. Filing after the deadline attracts a penalty of up to ₹5,000 under section 234F of the Income Tax Act 2025. Always verify the exact deadline from the Income Tax Department's official portal before filing, as dates can shift.

Question 6

Which ITR form should I use — ITR-1, ITR-2, ITR-3 or ITR-4?

Accepted Answer

The Income Tax Department has four ITR forms for individuals. ITR-1 (Sahaj) is for salary income, one house property, and agricultural income up to ₹5,000. ITR-2 is for capital gains or foreign income. ITR-3 is for business or professional income. ITR-4 (Sugam) is for income you declare under the presumptive scheme in section 44AD or 44ADA. Most salaried employees use ITR-1. Using the wrong form gives a defective return notice under section 139(9). File at incometax.gov.in.

Income range	Rate	Tax on slab top
Up to ₹4 lakh	Nil	No tax
₹4–8 lakh	5%	₹20,000
₹8–12 lakh	10%	₹60,000
₹12–16 lakh	15%	₹1,20,000
₹16–20 lakh	20%	₹2,00,000
₹20–24 lakh	25%	₹3,00,000
Above ₹24 lakh	30%	30% of excess

Income Tax Act 2025 — new regime slabs, sections & rules

Browse by topic

Income Tax

New Tax Act 2025

GST

TDS

Compliance Calendar

Free Calculators

Free Calculators

EMI Calculator

Loan Eligibility Calculator

Income Tax Calculator

Latest from the blog

TDS on Property Purchase: 1% Rule, Limits, and Form 26QB

AIS vs Form 26AS vs CIBIL Score in India: Which Document Do You Actually Need

Annual Information Statement (AIS): What It Is and How to Use It

Popular tax & GST explainers

Business and Professional Income in India: How It Is Taxed Under the Income Tax Act 2025

Capital Gains on Equity and Mutual Funds in India: STCG and LTCG Explained

Capital Gains on Property in India: How It Is Taxed Under the Income Tax Act 2025

Quick reference

Frequently Asked Questions

Glossary

Income Tax Forms

GST Returns & Forms

Loans Hub

Compliance Calendar

Latest Updates

Editorial Team & Methodology

Find your tax slab in 30 seconds