Reviewed 2 October 2026. This guide covers FY 2025-26, assessed in AY 2026-27. It does not label an earlier tax-year table as a new Budget 2026 rule. Compare actual eligible deductions and income types before choosing a regime.
New-regime slabs for AY 2026-27
| Taxable income band | Rate on that band |
|---|---|
| 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% |
Eligible resident individuals with total taxable income up to ₹12 lakh can receive the ordinary-rate rebate up to ₹60,000. Special-rate income needs separate treatment. A rebate is different from the nil-rate slab.
Old-regime comparison for an individual under 60
The ordinary slab rates are nil up to ₹2.5 lakh, 5% on ₹2.5–5 lakh, 20% on ₹5–10 lakh and 30% above ₹10 lakh. Eligible residents with taxable income up to ₹5 lakh can receive a rebate up to ₹12,500. Senior-citizen old-regime thresholds differ.
Add applicable surcharge and 4% health and education cess after considering relief. The website calculator assumes a resident individual under 60 and ordinary slab-rate income.
Checked ₹12 lakh salary example
Assume a resident under 60, salary of ₹12 lakh, no other income and no eligible deduction apart from the standard deduction. New regime: ₹12 lakh − ₹75,000 = ₹11.25 lakh taxable salary. Ordinary slab tax is ₹52,500 before rebate, reduced to zero by the eligible rebate.
Old regime: ₹12 lakh − ₹50,000 = ₹11.5 lakh taxable salary. Slab tax is ₹1,57,500; 4% cess gives ₹1,63,800. This example changes if you have other income or valid old-regime deductions. It corrects the earlier claim that the old regime won in a ₹12 lakh example using outdated new-regime slabs.
How to make the election
Identify the year, residency, age, income types and deductions first. An employer’s declaration concerns payroll withholding and is not always the final return election. People with business or professional income face different election procedures and switching restrictions from people without that income. Follow the portal’s current filing guidance and applicable deadlines.
Sources and further reading
Useful tools and related guides
Educational information: The Invest Mate does not provide personalised financial advice. Examples are illustrations, not promised returns. Check applicable rules and product documents before acting.
