Tax Slabs AY 2026-27
New Tax Regime (Default)
| Income Slab | Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 – ₹7,00,000 | 5% |
| ₹7,00,001 – ₹10,00,000 | 10% |
| ₹10,00,001 – ₹12,00,000 | 15% |
| ₹12,00,001 – ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Rebate u/s 87A: Tax rebate up to ₹25,000 for income up to ₹7 lakh.
Old Tax Regime
| Income Slab | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Senior Citizens: Basic exemption ₹3 lakh. Super Senior Citizens: ₹5 lakh. Surcharge and cess apply.
TDS Rate Chart FY 2025-26
| Section | Nature of Payment | Threshold | TDS Rate (Non-PAN) |
|---|---|---|---|
| 192 | Salary | Basic exemption | As per slab |
| 194A | Interest (Banks) | ₹40,000 / ₹50,000 (Sr. Citizen) | 10% |
| 194C | Contractor payments | ₹30,000 / ₹1,00,000 p.a. | 1% (Ind/HUF) / 2% |
| 194H | Commission / Brokerage | ₹15,000 | 5% |
| 194I | Rent | ₹2,40,000 p.a. | 2% (P&M) / 10% (Land/Building) |
| 194J | Professional / Technical fees | ₹30,000 | 10% (Prof) / 2% (Technical) |
| 194Q | Purchase of goods | ₹50,00,000 p.a. | 0.1% |
| 194T | Partner salary/interest | ₹20,000 | 10% |
| 195 | Payments to non-residents | Any amount | As per DTAA / IT Act |
Important Deductions & Exemptions
Section 80C, ₹1.5 Lakh
LIC premium, PPF, ELSS, NSC, home loan principal, children’s tuition fees, EPF contribution. Only under old regime.
Section 80D, Medical Insurance
₹25,000 for self/family; ₹50,000 for senior citizen parents. Additional ₹5,000 for preventive health check-ups.
Section 80E, Education Loan
Full deduction on interest paid on education loan for higher studies. Available for 8 years from year of first repayment.
Section 24(b), Home Loan Interest
₹2 lakh deduction on interest for self-occupied property. No limit for let-out property (set off restrictions apply).
Section 80G, Donations
50% or 100% deduction on donations to approved funds/institutions. Donations must be made via banking channels.
Standard Deduction
₹75,000 standard deduction available under the new tax regime for salaried employees from FY 2024-25 onwards.
Capital Gains Tax Rates
| Asset Type | Short Term (STCG) | Holding Period | Long Term (LTCG) | Holding Period |
|---|---|---|---|---|
| Listed Equity / Equity MF | 20% (Sec 111A) | <12 months | 12.5% above ₹1.25L (Sec 112A) | ≥12 months |
| Immovable Property | As per slab | <24 months | 12.5% (no indexation) | ≥24 months |
| Debt Mutual Funds | As per slab | Any period | As per slab | Any period |
| Unlisted Shares | As per slab | <24 months | 12.5% | ≥24 months |
| Gold / Jewellery | As per slab | <24 months | 12.5% (no indexation) | ≥24 months |
Note: Surcharge and health & education cess of 4% applicable. Rates as per Finance Act 2024 applicable from FY 2024-25.
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