S.Tax Consultant

Income Tax FY 2025-26(AY 2026-2027)

Income Tax Filing AY2025-26(FY2024-25) Starting soon

Income Tax AY2026-27(FY 2025-26)new regime, no income tax will be payable on annual income of up to Rs 12,00,000. For salaried person individuals opting for the new regime, income of up to Rs 12,75,000 will be tax-free.

Budget 2025-26 highlights
Section 87A rebate under the new tax regime has been increased from Rs 25,000 to Rs 60,000
Basic income tax exemption limit raised from Rs 3,00,000 in existing new regime to Rs 4,00,000 in proposed new regime
Proposed increase in TCS threshold on remittances under RBI’s Liberalized Remittance Scheme (LRS) from Rs. 7 lakh to Rs. 10 lakh
TCS not applicable to educational remittances funded by loans from specified financial institutions
Time for filing updated returns for any AY extended by 2 years

No Income payable on income of up to Rs 12,00,000 in the new tax regime
Here is how the new (proposed) tax regime will now look like:
Zero to Rs 4,00,000- No Tax
Rs 4,00,000 to Rs 8,00,000---5%
Rs 8,00,0001 to Rs 12,00,000---10%
Rs 12,00,001 to Rs16 lakh--15%
Rs 16,00,001 to Rs 20 lakh--20%
Rs 20,00,001 to Rs 24 lakh-- 25%
Above 24 lakh---30%

Old and new income tax regime in budget 2025: Hike in standard deduction limits possible?
Taxpayers are hoping for a hike in the standard deduction limit under both tax regimes. Currently, the old tax regime offers a standard deduction of Rs 50,000. Under the new tax regime, taxpayers can claim a standard deduction of up to Rs 75,000. However, taxpayers are also demanding more exemptions and deductions under the new tax regime.