Is there any change in the income tax slab in the Union Budget 2026?

No, the Union Budget 2026 presented by Finance Minister Nirmala Sitharaman on February 1st 2026, has not made any changes in the existing income tax slab structure in FY 2026-27. Both the new and old tax regime slabs are still the same as the previous year. However, the budget had other important reforms, such as the extension of the deadline for filing revised returns and the revision of the threshold for TDS.

Are the new income tax slabs applicable to all age groups?

Yes, as per the new tax regime for Financial Year (FY) 2026-27, the income tax new slab rate structure is applicable for all taxpayers irrespective of their age. Individuals below 60 years, senior citizens (60 - 80 years) and super senior citizens (above 80 years) are all taxed under the same slabs. This is in contrast to the old regime, which had a differentiated basic exemption limit depending on age categories.

Can I change between the old and new tax regimes?

Yes, salaried personnel who do not have business income can elect the old and new tax regimes at the point of filing their ITR in the respective form. Taxpayers who have business income have the option to change it by filing the 10IEA form.

Isn't the income up to 12 lakhs completely tax-free in the financial year 2026-27?

Yes. Under the new tax system, resident individuals earning up to a taxable income of Rs 12 lakhs pay no tax as a result of a higher rebate of Rs 60,000 in accordance with Section 87A of the Tax Act. For salaried taxpayers, after the standard deduction of Rs 75,000, the tax-exempt income limit increases to about Rs 12.75 lakh.

What is the standard deduction in FY 2026 27 for salaried employees?

Standard deduction for salaried employees in the new tax regime for the tax year 2026-27 is Rs. 75,000. This deduction is automatic, and there is no need to prove investment or expenditure. It is deducted from the gross salary to calculate the taxable income.