Tax Rates FY 2026-27
Your simplified guide to the latest Direct Tax Provisions (Finance Bill 2026).
B.1 New Tax Regime Default
This is the default regime under Section 202 (ITA 2025). It applies automatically unless you opt out.
| Total Income Slab | Tax Rate |
|---|---|
| Upto ₹4,00,000 | NIL |
| ₹4,00,001 to ₹8,00,000 | 5% |
| ₹8,00,001 to ₹12,00,000 | 10% |
| ₹12,00,001 to ₹16,00,000 | 15% |
| ₹16,00,001 to ₹20,00,000 | 20% |
| ₹20,00,001 to ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
💡 Real-World Calculation Example
Let’s compare the tax liability for Mr. Arjun (Age 45) with a Gross Annual Income of ₹15,00,000.
New Regime (Default)
Assumption: No deductions claimed.
0 – 4L (Nil) ₹0
4L – 8L (5% of 4L) ₹20,000
8L – 12L (10% of 4L) ₹40,000
12L – 15L (15% of 3L) ₹45,000
Total Tax
₹1,05,000
Lower Tax Liability
Old Regime (Optional)
Assumption: Claiming ₹1.5L (80C) + ₹50k (Std Ded). Taxable: ₹13L
0 – 2.5L (Nil) ₹0
2.5L – 5L (5%) ₹12,500
5L – 10L (20%) ₹1,00,000
10L – 13L (30%) ₹90,000
Total Tax
₹2,02,500
Higher tax unless deductions > ₹4.5L
* Calculations exclude 4% Cess for simplicity.
B.2 Old Tax Regime Optional
Rates applicable if you exercise the option under Section 115BAC(6). Useful for those with high deductions (Home Loan, HRA, etc).
General (< 60 years)
- Upto ₹2.5L: Nil
- ₹2.5L – ₹5L: 5%
- ₹5L – ₹10L: 20%
- Above ₹10L: 30%
Senior Citizens (60-80 yrs)
- Upto ₹3L: Nil
- ₹3L – ₹5L: 5%
- ₹5L – ₹10L: 20%
- Above ₹10L: 30%
🏢 Corporate Tax Rates
| Domestic Co. (Default) | 30% |
| Domestic (Turnover ≤ ₹400Cr) | 25% |
| Sec 115BAA Optees | 22% |
| Sec 115BAB (New Mfg) | 15% |
📈 Surcharge (New Regime)
- Income > ₹50L to ₹1Cr: 10%
- Income > ₹1Cr to ₹2Cr: 15%
- Income > ₹2Cr: 25% (Max Cap)
Note: 4% Health & Education Cess applies to Tax + Surcharge.
