Income Tax applies to individuals based on a slab system, where different tax rates are assigned to different income ranges. As the person’s income increases, the tax rates also increase. This type of taxation allows for a fair and progressive tax system in the country. The income tax slabs are revised periodically, typically during each budget. Tax Slabs for AY 2025-26"" The Finance Act 2024 has amended the provisions of Section 115BAC w.e.f AY 2024-25 to make new tax regime the default tax regime for the assessee being an Individual, HUF, AOP (not being co-operative societies), BOI and or Artificial Juridical Person. However, the eligible taxpayers have the option to opt out of default tax regime and choose to be taxed under old tax regime. The old tax regime refers to the system of income tax calculation and slabs that existed ... Income tax in India is levied based on a slab system, where different income ranges are taxed at different rates. As your income goes up, the tax rate on the higher income also increases. This system ensures that those with higher incomes pay a larger percentage in taxes . Income Tax Slabs and Income Tax Rates For FY 2024-25 (AY 2025-2026): Finance Minister Nirmala Sitharaman introduced modifications to the income tax slabs within the new tax income tax regime in ...
