From 1 April 2026 the Income-tax Act, 2025 replaces the Income-tax Act, 1961. The new law uses simpler language and a single "tax year" in place of "previous year" and "assessment year".
What stays the same for FY 2026-27
Budget 2026 did not change the slab rates. Under the default new regime:
- Nil up to ₹4 lakh, then 5%, 10%, 15%, 20% and 25% in ₹4 lakh steps, and 30% above ₹24 lakh
- Standard deduction for salaried employees: ₹75,000
- Section 87A rebate: no tax up to ₹12 lakh taxable income (about ₹12.75 lakh salary)
Old or new regime?
The old regime still allows HRA, 80C and other deductions. If your deductions are large, compare both.
Our India calculator compares both regimes for you.
Work out your own take-home pay with the India tax calculator →Related: Salary comparison · More tax news
This article is general information, not tax advice. Rates come from official government sources for the tax year shown.