The Union Budget 2026 made no changes to income tax slab rates — here's what applies for FY 2026-27 (Assessment Year 2027-28).
| Income Slab | Tax Rate |
|---|---|
| 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% |
Under the new regime, individuals with taxable income up to ₹12,00,000 pay no tax after rebate under Section 87A (up to ₹60,000 rebate), plus the standard deduction of ₹75,000 for salaried taxpayers effectively raises this threshold further for salary income.
| Income Slab | Tax Rate |
|---|---|
| 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% |
The old regime allows deductions such as Section 80C (up to ₹1,50,000), HRA, home loan interest, and other exemptions not available under the new regime.
If you have significant deductions — home loan interest, HRA, 80C investments, health insurance premiums — the old regime may still work out cheaper. If you have few deductions, the new regime's lower rates and higher rebate threshold usually result in lower tax. The right choice depends on your specific income and deduction profile — our CA team can run both calculations for you.
Note: Tax rates are subject to change with future Union Budgets. This information reflects the position as of August 2026; please confirm current rates with our team before filing.