Taxpayers earning up to ₹4 lakh/year will pay nil income tax in the new tax regime, FM Nirmala Sitharaman announced in Union Budget 2025-26. A 5% tax will be levied on ₹4-8 lakh income, 10% on ₹8-12 lakh, 15% on ₹12-16 lakh, 20% on ₹16-20 lakh and 25% on ₹20-24 lakh. Income above ₹24 lakh will be taxed at 30%.