Period check: AY 2026–27 concerns FY 2025–26 under the 1961 Act. Tax Year 2026–27 concerns April 2026–March 2027 under the 2025 Act. Familiar old section names below are explanatory labels, not current filing references.
New-regime slabs
| Taxable ordinary income | New-regime rate |
|---|---|
| Up to ₹4 lakh | Nil |
| ₹4–8 lakh | 5% |
| ₹8–12 lakh | 10% |
| ₹12–16 lakh | 15% |
| ₹16–20 lakh | 20% |
| ₹20–24 lakh | 25% |
| Above ₹24 lakh | 30% |
These are marginal rates: apply a rate to income within its band, not the whole salary. Salary standard deduction is up to ₹75,000 in the new regime. The resident ordinary-income rebate can reduce tax to zero at taxable income up to ₹12 lakh. That is not a blanket exemption for every kind of income.
Rebate and marginal relief
For an ordinary salary-only example, ₹12.75 lakh gross less ₹75,000 standard deduction leaves ₹12 lakh taxable. Eligible rebate can eliminate the slab tax. Slightly above the threshold, marginal relief prevents the tax before cess exceeding the eligible excess income. Special-rate capital gains require a separate computation.
Old-regime comparison
For a resident under sixty, the normal old-regime bands are nil up to ₹2.5 lakh, five percent to ₹5 lakh, twenty percent to ₹10 lakh and thirty percent thereafter. Senior-age basic exemptions differ. Salary standard deduction is up to ₹50,000; eligible deductions and HRA can change taxable income. The ordinary resident rebate threshold is ₹5 lakh taxable income.
Cess and surcharge
Health and education cess is four percent. Higher incomes may attract surcharge and marginal relief at its thresholds. The salary and TDS calculator includes these for the resident ordinary-salary scope and exposes the taxable amount, standard deduction and annual tax.
Choose by your actual deductions
There is no universal deduction amount at which one regime always wins. Compare your full income, eligibility and tax period. Use the transition guide for the new references and retain proof for deductions used.
Official sources and scope
Source review: 2026-10-08. Check the relevant notification and your own records before filing or settling an entitlement.