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New Income Tax Bill 2025: Slab and rates for ₹12 lakh or any income under old and new regimes
3 min read | Updated on August 13, 2025, 12:54 IST
SUMMARY
Modified Income Tax Bill 2025 slab and rates: The income tax slabs and rates provided in the new bill are the same as those applicable currently for salaried individuals, business persons, professionals, and all other taxpayers.
New Income Tax Bill 2025 has been passed by Lok Sabha. | Image source: Shutterstock
The New Income Tax Bill will replace the Income Tax Act, 1961. It includes all the relevant tax laws updated till the Finance Act, 2025.
Therefore, the income tax slab and rates provided in the new bill are the same as those applicable currently for salaried individuals, business persons, professionals, and all other taxpayers.
One major change in the Income Tax Bill 2025 is that it has ended the confusion over assessment year (AY) and financial year (AY) by using the term "Tax Year".
Here's a look at the tax slab and rates mentioned in the New Income Tax Bill 2025 for income up to ₹12 lakh and even more:
New tax regime rates for individuals, Hindu Undivided family and others are mentioned under Clause 202(I) of the New Income Tax Bill.
| Total Income (₹) | Rate of Tax |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹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% |
The above rates will apply to an individual, a Hindu undivided family, an association of persons (other than a co-operative society), a body of individuals, whether incorporated or not, an artificial juridical person.
The Bill says that the total income of the assessee under the new tax regime shall be computed without any exemption or deduction (other than those already available under the Finance Act, 2025).
What about the old tax regime rates?
The income tax slab and rates applicable to taxpayers are not explicitly mentioned in the new Income Tax Bill as they are subject to revision through annual finance bills presented during the Union Budget.
Currently, the following slab rates are applicable under the old tax regime:
| Category | Income Slab (₹) | Tax Rate |
|---|---|---|
| General Citizens | Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% | |
| ₹5,00,001 – ₹10,00,000 | 20% | |
| Above ₹10,00,000 | 30% | |
| Senior Citizens | Up to ₹3,00,000 | Nil |
| (Age 60 to <80) | ₹3,00,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% | |
| Above ₹10,00,000 | 30% | |
| Super Senior Citizens | Up to ₹5,00,000 | Nil |
| (Age 80 and above) | ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Chapter II on the 'Basis of Charge' in the new bill states that income tax for a tax year shall be charged at the rates enacted by any Central Act.
"Where any Central Act enacts that income-tax shall be charged for any tax year at any rate or rates, income-tax for such tax year shall be charged at that rate or those rates in accordance with and subject to the provisions of this Act," says Clause 4(I) of the New Income Tax Bill 2025.
The bill further says the charge of income tax shall be on the total income of the tax year of every person as per the provisions of the new bill.
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