{"id":"aigc-v0-f9a25aa1-a37c-5325-98cb-b0c109ff39c2","title":"Income Tax 2026: Slabs, Regime Changes & Key Announcements","description":"The Income Tax Budget 2026 brought forth several updates, primarily focusing on the new tax regime. Key aspects include unchanged tax rates and slabs for FY 2026-27, with emphasis on deductions and rebates. This summary covers the latest developments and their implications for taxpayers.","timestamp":1770103703,"category":"business","headline":"Income Tax 2026: Slabs, Regime Changes & Key Announcements","modifiedHeadline":"2026 Income Tax Slabs and Changes","subCategories":["scid_08f7a4b9"],"region":"IN","bundleMetaData":{"bundleId":"ece1ae3d-908e-48c7-9e53-a4aa910ee4db","bundleTitle":"Grow Your Money","cardData":null},"iabCategoryId":"415","fcSummary":"the union budget 2026 introduced updates to the income tax framework, with unchanged tax slabs for fiscal year 2026-2027. the new regime offers a higher standard deduction of rs 75,000 compared to rs 50,000 in the old regime, but home loan interest deduction is only available under the old system. the section 87a rebate makes income up to rs 12 lakh tax-free.","summary":"Income Tax 2026: New regime focus, rates & slabs unchanged for FY26-27. Deductions & rebates emphasized.","ctaUrl":"https://trends.glance.com/newz/science_and_technology/IN/en/feedpost-specials/aigc-v0-f9a25aa1-a37c-5325-98cb-b0c109ff39c2?byte=true","sourceUrl":"https://trends.glance.com/newz/science_and_technology/IN/en/feedpost-specials/aigc-v0-f9a25aa1-a37c-5325-98cb-b0c109ff39c2?byte=true","bannerImage":"https://g-mob.glance-cdn.com/public/fc/image/I63wtmBj7Mr0.webp","content":"

\n The Union Budget 2026 introduced updates to the income tax framework. Salaried individuals and the middle class awaited announcements from Finance Minister Nirmala Sitharaman. The new income tax regime has seen some changes. Let's explore the key takeaways and how they affect you.\n

Tax Slab Updates

For the fiscal year 2026-2027, the income tax slabs under both the old and new regimes remain unchanged. Under the new tax system, an income up to Rs 4

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lakh is exempt from taxation, providing a basic exemption limit at this level. Earnings between Rs 4 lakh and Rs 8 lakh are taxed at 5%. Income in the range of Rs 8 lakh to Rs 12 lakh attracts a 10% tax rate. Income from Rs 12 lakh to Rs 16 lakh is taxed at 15%, increasing to 20% for income between Rs 16 lakh and Rs 20 lakh, and further to 25% for income in the Rs 20 lakh to Rs 24 lakh bracket. Any income exceeding Rs 24 lakh is taxed at the highest rate, which is 30%.

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Section 87A Rebate

A significant benefit under the current system is the Section 87A rebate. This provision effectively makes income up to Rs 12 lakh – or Rs 12.75 lakh for salaried individuals – tax-free after the rebate is accounted for. Many taxpayers still prefer the old tax regime, hoping for lower tax rates and a higher basic exemption limit within it. This preference suggests the need for continued evaluation and potential adjustments to ensure fairness and competitiveness across both regimes, providing taxpayers with a balanced and advantageous tax structure.

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Standard Deduction Details

The standard deduction is a simple, straightforward deduction available for salaried taxpayers, eliminating the need for paperwork or proof of expenses. The standard deduction amount, however, varies between the old and new income tax regimes. Those who opt for the old income tax regime can claim a standard deduction of Rs 50,000, while those under the new income tax regime can benefit from a higher standard deduction of Rs 75,000. This differentiation provides flexibility, allowing taxpayers to choose the regime that best suits their financial situation and deduction needs, thereby optimizing their tax liability based on their specific circumstances.

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Home Loan Interest

Under the old tax regime, individuals can claim deductions on the interest they pay on their home loans. For a self-occupied residential property, interest payments up to Rs 2 lakh per year, or the actual interest paid if lower, can be deducted from taxable income. Tax experts had suggested that extending this benefit to the new tax regime could stimulate the housing sector. However, the budget did not announce such a provision. Therefore, those choosing the new tax regime will not get the home loan interest deduction benefits.

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Section 80C Deduction

Section 80C is a widely used deduction under the old tax regime. This section allows individuals to reduce their taxable income by investing in various instruments. These include investments in instruments such as provident fund, public provident fund (PPF), and mutual funds, as well as other common savings avenues. The maximum amount that can be claimed under this section is Rs 1.5 lakh. Taxpayers should ensure that they have made investments under Section 80C to avail of its benefits.

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Income Tax 2026: Slabs, Regime Changes & Key Announcements

SUMMARY