Tax rates for residents other than Individuals or HUF
There is no change in the tax rates applicable to Corporates. Also, no changes have been made in the old tax regime applicable to individuals.
Amendments in Income Tax Rates, as introduced by the Finance Act, 2025
Under the new tax regime contained in section 115BAC, concessional tax rates are provided to resident Individuals/ HUF/ AOP (other than co-operative society) / BOI without availing specified deductions. With effect from assessment year 2026-27, the tax rate structure has been further revised to benefit the taxpayers. A comparative chart of the existing tax rates under the provisions of Section 115BAC applicable for AY 2025-26 vis-à-vis the amended tax rates applicable for AY 2026-27 is provide hereunder:
| Amended Tax Rates (AY 2026–27) | Existing Tax Rates (AY 2025–26) | ||
|---|---|---|---|
| Total Income (INR) | Tax Rate | Total Income (INR) | Tax Rate |
| Up to 4,00,000 | Nil | Up to 3,00,000 | Nil |
| 4,00,001 to 8,00,000 | 5% | 3,00,001 to 7,00,000 | 5% |
| 8,00,001 to 12,00,000 | 10% | 7,00,001 to 10,00,000 | 10% |
| 12,00,001 to 16,00,000 | 15% | 10,00,001 to 12,00,000 | 15% |
| 16,00,001 to 20,00,000 | 20% | 12,00,001 to 15,00,000 | 20% |
| 20,00,001 to 24,00,000 | 25% | Above 15,00,000 | 30% |
| Above 24,00,000 | 30% | — | — |
Tax rates for non-residents
There is no change in the tax rates applicable to non-residents.
