The new slab rates for the Assessment Year 2026-27 are as follows:
| Total Income (Rs.) | Rate of Tax |
|---|---|
| Up to 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% |
Increase in Section 87A Rebate
From assessment year 2026-27 onwards, the rebate under section 87A will be available to individuals resident in India whose income is chargeable to tax under subsection (1A) of section 115BAC. The limit of total income for rebate will be enhanced from Rs. 7,00,000 to Rs. 12,00,000. The limit of rebate will be increased from Rs. 25,000 to Rs. 60,000. The deduction under the first proviso to section 87A shall not exceed the amount of income tax payable as per the rates provided in subsection (1A) of section 115BAC.