Income Tax Guide 2026‑27 new regime

Complete walkthrough for FY 2026–27 (AY 2027–28) – slabs, deductions, filing & more.
What’s new for the financial year 2026-27?

The Indian government has retained the dual tax regime. Below you’ll find the latest slab rates (as per Union Budget 2026), key deductions, and a step‑by‑step filing roadmap. All figures are in ₹.

Income Tax Slabs 2026-27

Total Income (₹)New Tax Regime (Default)Old Tax Regime
Up to 3,00,000NilNil
3,00,001 – 6,00,0005%5%
6,00,001 – 9,00,00010% (87A rebate up to 7L)20%
9,00,001 – 12,00,00015%30%
12,00,001 – 15,00,00020%30%
Above 15,00,00030%30%

* New regime offers lower rates but forgoes most deductions. Surcharge & cess extra.

Standard deduction

₹75,000 under new regime (increased from ₹50,000). Old regime: ₹50,000 + leave travel, HRA, etc.

Section 87A rebate

Full rebate for taxable income up to ₹7,00,000 under new regime (tax nil).

Deductions (old regime)

80C (1.5L), 80D (health), HRA, LTA, home loan interest – available only if you opt old regime.

Key deductions & exemptions

Old regime (section 80C, 80D, etc.)

If you choose the old tax regime, you can claim:
• 80C: up to ₹1.5 lakh (PPF, ELSS, life insurance, tuition fees)
• 80D: health insurance premium up to ₹25,000 (₹50,000 for senior citizens)
• HRA exemption (actual rent paid – 10% of salary)
• Home loan interest up to ₹2 lakh (section 24)
• Standard deduction ₹50,000

New regime – limited but simpler

Only a few deductions are allowed: standard deduction ₹75,000, employer's NPS contribution (section 80CCD(2)), and concessional tax on perquisites. No 80C, 80D, or HRA. Best for those with minimal investments.

How to file your ITR (step‑by‑step)

1 Collect documents – Form 16, bank interest certificates, investment proofs, Aadhaar, PAN.
2 Choose ITR form – ITR-1 (salaried, one house property, other income < ₹50L) or ITR-2 / ITR-3 for business/capital gains.
3 Compute income & tax – use our free calculator to compare regimes.
4 File online – log in to the e-filing portal, upload or fill the form, verify with Aadhaar OTP / DSC.

Due dates (AY 2027-28)

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