Income Tax Slabs for FY 2026-27 (AY 2027-28): Old vs New Comparison
आयकर स्लैब दरें (वित्तीय वर्ष 2026-27 / कर निर्धारण वर्ष 2027-28)
Detailed statutory comparison of income tax slabs, basic exemption limits, standard deduction (₹75k New / ₹50k Old), tax rebates, surcharge rates, and 4% health & education cess under both regimes for FY 2026-27 (AY 2027-28).
Chartered Accountancy Review Panel • Senior Direct Tax Review Desk
Tax Litigation & Legal Review Panel • Tax Appeal & Procedure Review Desk
Key Statutory Highlights (FY 2026-27 (AY 2027-28))
Who is Eligible & When Does it Apply?
All individual taxpayers, Senior Citizens (60-80 yrs), Super Senior Citizens (80+ yrs in Old Regime), and HUFs.
Step-by-Step Procedure & Compliance Roadmap
Distinguish Financial Year vs Assessment Year
Ensure you evaluate income earned during Financial Year 2026-27 (1 April 2026 – 31 March 2027), which is assessed in Assessment Year 2027-28.
Apply Salaried Standard Deduction
Deduct ₹75,000 under New Regime (or ₹50,000 under Old Regime) from gross salary before calculating taxable income.
Calculate Slab-Wise Marginal Tax
Break down net taxable income into progressive slab brackets and compute tax at applicable percentage rates.
Apply Rebate, Surcharge & 4% Cess
Claim statutory tax rebate if income is within zero-tax limits, add applicable surcharge for income above ₹50 Lakh, then add 4% Cess.
Mandatory Documents Checklist
Common Mistakes & Compliance Risks to Avoid
Frequently Asked Questions
What is the difference between Financial Year (FY 2026-27) and Assessment Year (AY 2027-28)?
Financial Year (FY 2026-27) is the period during which income is earned (1st April 2026 to 31st March 2027). Assessment Year (AY 2027-28) is the immediately following financial year during which that income is evaluated, assessed, and tax returns are filed.
What is the Standard Deduction for salaried employees in FY 2026-27 (AY 2027-28)?
Salaried taxpayers are eligible for a standard deduction of ₹75,000 under the New Tax Regime (Section 16(ia)) and ₹50,000 under the Old Tax Regime.
How does the tax rebate work under the New Tax Regime for FY 2026-27?
Under the New Tax Regime for FY 2026-27 (AY 2027-28), eligible resident individuals with taxable income up to ₹12,00,000 receive a tax rebate resulting in zero net tax liability.
Are senior citizens entitled to higher exemption under the New Regime?
Under the New Tax Regime (Section 115BAC), the basic exemption limit is ₹3,00,000 (with 0% tax bracket up to ₹4,00,000) uniformly for all individual taxpayers regardless of age. Senior citizen higher exemption limits (₹3 Lakh for 60-80 yrs / ₹5 Lakh for 80+ yrs) apply exclusively under the Old Tax Regime.
Need clarification on this tax topic? Ask our bilingual AI Guide for instant conceptual guidance.
Need filing assistance or personalized case representation? Connect with a qualified active professional.