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Income Tax in India: Slabs, Exemption Limit and Deductions

New regime FY 2026-27: income up to ₹12 lakh is tax-free via the ₹60,000 rebate. Old regime exemption limit is ₹2.5 lakh.

Credsir Editorial Team · MBA · 14 years in fintech
Updated 17 Sep 2026

Under the new tax regime for FY 2026-27, income up to ₹4 lakh is exempt, and taxable income up to ₹12 lakh pays no tax because of the ₹60,000 rebate. With the ₹75,000 standard deduction, a salary of up to ₹12.75 lakh is tax-free.

The old regime keeps a ₹2.5 lakh basic exemption limit (₹3 lakh from age 60, ₹5 lakh from 80) and deductions such as ₹1.5 lakh under Section 80C.

FY 2026-27 is tax year 2026-27 under the Income-tax Act, 2025, which applies from 1 April 2026. Returns for FY 2025-26 are still filed under the Income-tax Act, 1961. The slab rates are unchanged between the two years. Full tables are on income tax slabs for FY 2026-27, and the old vs new regime calculator works out which regime costs you less.

Gross salary Taxable income after ₹75,000 standard deduction Tax with 4% cess, new regime
₹8.5 lakh ₹7,75,000 Nil
₹10 lakh ₹9,25,000 Nil
₹12.75 lakh ₹12,00,000 Nil
₹30 lakh ₹29,25,000 ₹4,75,800
₹40 lakh ₹39,25,000 ₹7,87,800
₹50 lakh ₹49,25,000 ₹10,99,800
₹75 lakh ₹74,25,000 ₹20,67,780 (includes 10% surcharge)

Assumes salary is the only income, no employer NPS contribution and a resident individual. Surcharge starts at 10% once taxable income crosses ₹50 lakh.

Rankings and comparisons

Old vs New Tax Regime

The exact deduction total you need for the old regime to beat the new one, computed at every income level.

How to

How to File Your ITR

File on the income tax portal, then e-verify within 30 days — the steps, the deadlines and the fee for missing them.

Guides and explainers

Advance Tax

Who owes advance tax, the four instalment dates, and the interest under the renumbered Sections 424 and 425 if you miss them.

All Income Tax Deductions

Every deduction with its limit and its regime — and why almost none of them applies under the default new regime.

Capital Gains Exemptions

The rollover sections CBDT names, what each covers, and the deadline that costs people the exemption.

Capital Gains on Property

24 months, 12.5% or 20% with indexation, and how sections 54, 54F and 54EC actually differ.

Capital Gains Tax Rates

STCG and LTCG by asset class after the 2024 rules, and the holding period that decides which one applies.

Crypto & VDA Taxation

30% flat, 1% TDS on sale value and no set-off of losses — with the new Income-tax Act 2025 section numbers.

F&O and Intraday Taxation

How F&O and intraday income is taxed, how turnover is computed and when an audit applies.

Form 16, 26AS, AIS & TIS

What each document actually shows, and how to reconcile all four before you file.

GST Rates & Slabs

India's GST is now two rates — 5% and 18% — plus nil and a 40% de-merit rate. What changed on 22 September 2025, and what did not.

GST Registration

These limits change by state and business type

GST Returns and Due Dates

Which GST return you file and when — GSTR-1 by the 11th, GSTR-3B by the 20th, the annual return by 31 December.

HRA Exemption

The three-way least-of calculation, the metro split, and whether rent paid to your parents counts.

Income Tax Refund Status

Refunds usually take four to five weeks after e-verification. What each status word means, why refunds fail, and how to unstick one.

Income Tax Slabs for FY 2026-27: New and Old Regime

The full slab tables, the ₹60,000 rebate, surcharge caps and cess — and the misreading that costs people money.

ITR Due Dates & Penalties

Every filing deadline, the section 234F fee, and the interest that costs more than the fee does.

LTCG on Shares & Mutual Funds

12.5% above ₹1.25 lakh a year, on holdings of more than 12 months. What counts and what does not.

NRI Taxation

The day-count tests that decide your residential status, what India can tax once you are non-resident, and how DTAA relief actually works.

PAN, TAN & Aadhaar Linking

The linking deadlines, the ₹1,000 fee, what breaks when a PAN goes inoperative, and how TAN differs from PAN.

Presumptive Taxation: 44AD & 44ADA

How the 44AD and 44ADA presumptive schemes work, the five-year lock-out most freelancers miss, and the single advance tax date.

Professional Tax by State in India

Which states levy professional tax, the constitutional cap, and how it is deducted.

Property Tax in India: Rates, Rules and City Portals

India has no single property tax rate. Each city sets its own rate on an assessed value; Delhi's 2025-26 schedule taxed A and B colony homes at 12%.

Responding to Income Tax Notices

What a 139(9), 143(1), 143(2), 148 or 156 notice means, how long you have to reply, and what happens if you do not.

Revised & Updated Returns

Revised, belated and ITR-U compared, with the four-year window and the one-way-door rule.

Section 80C Investments

The ₹1.5 lakh options ranked by return and lock-in — and why 80C may be worth nothing to you.

Section 80D: Health Insurance

Section 80D limits for self, family and senior citizen parents in FY 2026-27 — and why the new regime cancels them entirely.

Stamp Duty & Registration Charges by State

What actually makes up your registration bill, the Maharashtra rates from the Act itself, and how the women-buyer concession works.

Standard Deduction

₹75,000 under the new regime, ₹50,000 under the old, for salary and pension. No bills, no proof, no claim form.

TDS Rates Chart

Section-wise TDS rates and thresholds for FY 2026-27, and the three things people get wrong about how thresholds work.

Which ITR Form Should You File?

Your income sources decide the form, not your income level — ITR-1 to ITR-7, and the conditions that push you out of the simple ones.

Frequently asked questions

What is the basic exemption limit for FY 2026-27?

Under the new regime it is ₹4 lakh for everyone, whatever their age. Under the old regime it is ₹2.5 lakh below 60, ₹3 lakh for senior citizens aged 60 to 79 and ₹5 lakh for those 80 and above.

How much tax is payable on a ₹10 lakh salary?

Nil under the new regime. After the ₹75,000 standard deduction your taxable income is ₹9.25 lakh, and the ₹60,000 rebate wipes out the tax on it. The same applies to a salary of ₹8.5 lakh.

How can I save tax on a salary above ₹10 lakh?

In the new regime, an employer’s NPS contribution of up to 14% of salary is still deductible, so ask whether your employer offers it. In the old regime you can claim ₹1.5 lakh under Section 80C, health insurance under Section 80D, and up to ₹2 lakh of home loan interest on a self-occupied house. Run both regimes before choosing; the list of income tax deductions shows which ones apply where.

What is the 80CCE limit?

₹1.5 lakh. Section 80CCE caps Sections 80C, 80CCC and 80CCD(1) together at ₹1,50,000 a year, and only in the old regime. Employer NPS contributions under Section 80CCD(2) sit outside this cap.

What is the 80TTB limit?

Resident senior citizens can deduct up to ₹50,000 of interest from bank, post office and co-operative bank deposits under Section 80TTB. Other taxpayers get up to ₹10,000 on savings account interest under Section 80TTA. Both are old-regime deductions.

Do I need to file an ITR if my income is below ₹2.5 lakh?

Usually not, if your income is below the basic exemption limit of the regime you are in. Some high-value transactions still make filing compulsory, and filing is the only way to claim a refund of TDS. Returns for tax year 2026-27 onward are filed under Section 263 of the Income-tax Act, 2025.

How is income above ₹50 lakh taxed?

The top slab rate is 30%, and a surcharge is added to the tax: 10% above ₹50 lakh, 15% above ₹1 crore and 25% above ₹2 crore. The old regime charges 37% above ₹5 crore, while the new regime caps it at 25%. Health and education cess of 4% applies on tax plus surcharge. For complex income, a chartered accountant can check your figures.

Sources

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