New Income Tax Regime 2026: Tax Slabs & Section 87A
The New Income Tax Regime 2026 is an important topic for salaried individuals, professionals and taxpayers planning their income tax return for AY 2026-27. The new tax regime is the default regime for eligible taxpayers, although the option to choose the old regime may be available subject to applicable conditions. Taxpayers should compare both regimes before filing their ITR.
New Tax Regime Slabs for AY 2026-27
- Up to ₹4 lakh – Nil Tax
- ₹4 lakh to ₹8 lakh – 5%
- ₹8 lakh to ₹12 lakh – 10%
- ₹12 lakh to ₹16 lakh – 15%
- ₹16 lakh to ₹20 lakh – 20%
- ₹20 lakh to ₹24 lakh – 25%
- Above ₹24 lakh – 30%
The Section 87A rebate under the new tax regime can provide a rebate of up to ₹60,000 to eligible resident individuals where taxable income does not exceed ₹12 lakh, subject to the applicable provisions. This makes tax planning and correct income calculation especially important.
Before selecting a tax regime, taxpayers should calculate salary or business income, bank interest, capital gains, deductions, exemptions and other taxable income. The new regime generally offers lower slab rates but allows fewer deductions and exemptions compared with the old regime.
Choosing the right regime depends on your individual financial situation. If you have significant eligible deductions or exemptions, compare the final tax liability under both options before filing your Income Tax Return.
