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Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minuteFor India’s new tax regime, the individual income-tax slabs for Assessment Year (AY) 2026-27 start at nil on income up to ₹4 lakh and rise to 30% on income above ₹24 lakh. The rates apply progressively, not to your entire income at the highest rate. A separate rebate may reduce tax to zero for qualifying resident individuals with total income up to ₹12 lakh; that does not make ₹12 lakh the nil-rate slab.
New tax regime slabs for AY 2026-27
The Income Tax Department’s individual slab schedule for the new regime is labelled AY 2026-27 onwards. Check the Department’s official individual tax guidance for the applicable period and taxpayer category.
| Total income | New-regime 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% |
These are marginal bands: each rate applies to the portion of income within that band. For example, the 30% rate applies to the part above ₹24 lakh, not to all income once total income crosses that threshold.
Does income up to ₹12 lakh mean no tax?
Not because of the slab schedule itself. Under the new regime, Section 87A provides a rebate of up to ₹60,000 for a qualifying resident individual whose total income does not exceed ₹12 lakh, applicable from AY 2026-27. It is a rebate against calculated tax and is subject to eligibility and statutory conditions; it is distinct from the nil-rate band, which ends at ₹4 lakh. See the Income Tax Department’s guidance on the new regime and rebate for the official conditions.
How the standard deduction affects taxable income
The Department’s current guidance provides a standard deduction under the new regime for salaried individuals and pensioners of up to ₹75,000 or salary, whichever is lower. This deduction reduces taxable income before applying the slabs; it does not alter the slab thresholds. Consequently, a qualifying salary-only case may reach a different gross-salary point before tax is payable than the taxable-income bands suggest. The deduction is not a universal adjustment for every taxpayer or income type.
AY 2026-27 versus Tax Year 2026-27
These labels refer to different legal frameworks during the transition. The Income Tax Department’s Budget 2026 FAQ identifies AY 2026-27 under section 115BAC(1A) of the Income-tax Act, 1961, and Tax Year (TY) 2026-27 onwards under section 202 of the Income-tax Act, 2025. Do not assume that an AY schedule and a TY schedule are interchangeable. For a return or calculation, use the period and governing provision that apply to the income in question, and confirm the TY-specific schedule in the Department’s Budget 2026 rate FAQ.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.New regime or old regime: how to compare
A slab table alone cannot show which regime produces less tax for you. The Department describes the new regime as offering concessional rates and liberal slabs, while generally disallowing deductions except those expressly allowed under the relevant provisions. Compare the applicable period, your eligible deductions and exemptions, the types of income you receive, and your calculated liability after rebate and other applicable amounts.
- Identify the correct assessment year or tax year and the schedule that applies.
- List deductions and exemptions you can actually claim under each regime.
- Account for your income mix, such as salary, pension, capital gains, or other income.
- Calculate the total liability under each option, including any rebate for which you qualify.
Because eligibility and income circumstances vary, these general slabs do not determine an individual’s final tax. The Income Tax Department’s AY 2026-27 return guidance also indicates that filing-form applicability depends on taxpayer facts.
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