New regime slabs for AY 2026-27
| Income slab | Tax rate | Planning note |
|---|---|---|
| Up to Rs. 4,00,000 | Nil | Default regime under section 115BAC. |
| Rs. 4,00,001 to Rs. 8,00,000 | 5% above Rs. 4,00,000 | Use taxable income after eligible deductions such as salary standard deduction. |
| Rs. 8,00,001 to Rs. 12,00,000 | Rs. 20,000 + 10% above Rs. 8,00,000 | Resident individuals may get section 87A rebate up to Rs. 60,000 if taxable income does not exceed Rs. 12,00,000. |
| Rs. 12,00,001 to Rs. 16,00,000 | Rs. 60,000 + 15% above Rs. 12,00,000 | No automatic zero-tax result merely because gross salary was near Rs. 12 lakh; compute taxable income first. |
| Rs. 16,00,001 to Rs. 20,00,000 | Rs. 1,20,000 + 20% above Rs. 16,00,000 | Check surcharge only if total income crosses Rs. 50 lakh. |
| Rs. 20,00,001 to Rs. 24,00,000 | Rs. 2,00,000 + 25% above Rs. 20,00,000 | Special-rate income needs separate handling. |
| Above Rs. 24,00,000 | Rs. 3,00,000 + 30% above Rs. 24,00,000 | Cess is 4% on tax plus surcharge. |
Old regime slabs for AY 2026-27
| Taxpayer age | Old-regime slab | Key note |
|---|---|---|
| Below 60 years | Nil up to Rs. 2.5 lakh; 5% up to Rs. 5 lakh; 20% up to Rs. 10 lakh; 30% above Rs. 10 lakh | Can claim eligible deductions/exemptions such as 80C, HRA, 80D and self-occupied house-property interest. |
| Senior citizen 60 to below 80 | Nil up to Rs. 3 lakh; 5% up to Rs. 5 lakh; 20% up to Rs. 10 lakh; 30% above Rs. 10 lakh | Old regime basic exemption is higher for resident seniors. |
| Super senior 80 or above | Nil up to Rs. 5 lakh; 20% up to Rs. 10 lakh; 30% above Rs. 10 lakh | New regime slab does not vary by age. |
Section 87A, cess and surcharge
- Resident individuals only: 87A rebate is up to Rs. 60,000 in the new regime where taxable income does not exceed Rs. 12 lakh.
- Old regime rebate is up to Rs. 12,500 where taxable income does not exceed Rs. 5 lakh.
- NRIs do not get section 87A rebate.
- Health and education cess is 4% on tax plus surcharge.
- Enhanced surcharge on income chargeable under sections 111A, 112, 112A and dividend income is capped as per official guidance; verify high-income cases separately.
Applicable year and source discipline
Last fact-checked: 25 May 2026.
AY 2026-27 means FY 2025-26 income and is still filed under the Income-tax Act, 1961 using forms/instructions for that assessment year. Tax Year 2026-27 means FY 2026-27 income under the Income Tax Act, 2025. The two should not be mixed.
Where this page discusses a new form, rate, portal label or transition item, treat it as usable only when supported by the live e-filing portal, a CBDT notification, the Income Tax Department guidance page, the supplied Act PDF, or ICAI material.
What a serious tax expert should verify
- Financial year, assessment year or tax year being handled.
- Residential status, age category, taxpayer type and whether business/professional income exists.
- Correct ITR form, utility validation rules and schedule requirements.
- AIS, TIS, Form 26AS, Form 16/Form 16A, TDS/TCS credits and advance-tax challans.
- Special-rate income such as section 111A, 112, 112A or VDA before applying section 87A rebate.
- Whether a claim is notified law, portal functionality, a draft/proposal, or a competitor summary.
FAQs
Which year should I use for Income Tax Slab Rates FY 2025-26?
Use AY 2026-27 for FY 2025-26 income under the Income-tax Act, 1961. Use Tax Year 2026-27 for FY 2026-27 income under the Income Tax Act, 2025.
What documents should I share with a tax expert?
Share the portal screenshot, exact year, income breakup, certificates, AIS/Form 26AS, notices, challans and any computation already prepared.
Can WorkIndex help me find a specialist?
Yes. Post a requirement with the legal year, records and deadline so experts can quote on the real issue instead of a generic page title.