📖 Income Tax Guide 2026-27
New Regime Slabs (2026-27):
0-4L: 0% | 4-8L: 5% | 8-12L: 10% | 12-16L: 15% | 16-20L: 20% | 20-24L: 25% | 24L+: 30%
Standard Deduction: ₹75,000 | Rebate u/s 87A (renumbered as Section 157 under the Income Tax Act, 2025): Taxable Income up to ₹12L = Zero Tax
Old Regime Slabs:
0-2.5L: 0% | 2.5-5L: 5% | 5-10L: 20% | 10L+: 30%
+ Deductions: 80C (₹1.5L), 80D, HRA, Standard ₹50,000
❓ Frequently Asked Questions
▶ New Regime vs Old Regime — which is better?
New Regime is better if: taxable income below ₹12L (zero tax), or you have few deductions. Old Regime is better if: you have 80C investments (₹1.5L), HRA, home loan interest, and deductions exceed ₹4.5L.
▶ What is Section 87A rebate?
Under New Regime, if your taxable income is up to ₹12 lakhs, you get full tax rebate under Section 87A (up to ₹60,000) — meaning ZERO tax payable. Under Old Regime, rebate applies for income up to ₹5 lakhs.
▶ What is Health and Education Cess?
4% cess is charged on calculated income tax. This goes towards health and education initiatives. It's added after calculating basic tax and surcharge.
▶ What deductions can reduce tax under Old Regime?
Key deductions: 80C (PPF, ELSS, LIC - ₹1.5L), 80D (Health Insurance - ₹25K), HRA Exemption, Home Loan Interest (₹2L under 24b), Standard Deduction (₹50K), 80CCD(1B) NPS (₹50K extra).
▶ When is ITR filing deadline?
For salaried individuals: July 31 of assessment year. For businesses requiring audit: October 31. Late filing attracts penalty of ₹5,000 (₹1,000 if income below ₹5L).
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