The Statutory Brief

IT Act 1961 → 2025 / Section 115BAC

Tax rates & regime

Section 115BAC → Section 202

New tax regime (default) for individuals, HUFs, AOPs, BOIs and artificial juridical persons

Section 115BAC of the old Income-tax Act, 1961 · new section 202 under the Income-tax Act, 2025

New reference Section 202

Income-tax Act, 1961Section 115BAC

  • Default regime from AY 2024-25; old regime by opting out
  • Slabs from FY 2025-26: nil up to ₹4 lakh, then 5% to 25% in ₹4 lakh steps, and 30% above ₹24 lakh
  • Most Chapter VI-A deductions and exemptions not allowed
  • Business taxpayers: limited option to switch back

Applies to FY 2025-26 (AY 2026-27) and earlier years.

Income-tax Act, 2025Section 202

  • Same regime, now section 202
  • Rates and slabs unchanged on transition
  • Rebate (old 87A) now section 156: no tax up to ₹12 lakh total income
  • Old-regime deductions (sections 123, 126 etc.) remain unavailable under it

Applies from tax year 2026-27 (from 1 April 2026).

What changed

Renumbered. Tax rates and slabs did not change with the new Act.

Practice notes

  • Salaried employees choose the regime with the employer each year; business taxpayers face restrictions on switching.
  • Standard deduction for salaried individuals under the new regime remains ₹75,000.

These are summaries, not the statutory text. Read the bare Act for both sections on the Income Tax Department's official site, which also has a side-by-side comparison utility.

Frequently asked

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

Section 202 keeps the slabs: nil up to ₹4 lakh, then 5% to 25% in ₹4 lakh steps, and 30% above ₹24 lakh; with the section 156 rebate there is no tax up to ₹12 lakh of normal-rate income.

What is section 115BAC called in the new Income-tax Act, 2025?

Section 115BAC of the Income-tax Act, 1961 corresponds to Section 202 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What changed in section 115BAC under the new Income Tax Act?

Renumbered. Tax rates and slabs did not change with the new Act.

Is section 115BAC still applicable for FY 2025-26?

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 115BAC of the 1961 Act. Section 202 of the 2025 Act applies from tax year 2026-27.

Related sections

80C→123Deduction for life insurance, PF, PPF, ELSS, tuition fees, home-loan principal and other specified savings80D→126Deduction for health insurance premium, preventive health check-up and medical expenditure for senior citizens