Income Tax Slab For Ay 2025-25. The income tax and the tariff shall be further increased by a health and education cess calculated at 4% of such income tax and surcharge. In india, income tax is calculated using income tax slabs and rates for the applicable financial year (fy) and assessment year (ay).

The option to choose the regime can be exercised every year directly in the itr. Income above a certain limit in a financial year is taxable.