Income Tax Slabs | No changes in Tax Emption in Union Budget 2026-2027

Combined Benefit of Lower Tax Slabs & Rebate

The table in the image shows the total tax benefit a person can get at different income levels after the tax brackets have been lowered and the rebate (up to ₹12 lakh) is applied.

For salaried individuals, the tax-free limit further increases to ₹12.75 lakh, owing to the standard deduction of ₹75,000. This expanded exemption limit is achieved by combining revised slab rates with an enhanced rebate system.

Key Highlights of the New Tax System

No Tax Up to ₹12–12.75 Lakh

• If you’re self-employed or have business income, you don’t pay any tax if your income is under ₹12 lakh.
• Salaried employees pay no tax up to ₹12.75 lakh after claiming the standard deduction.
• Significant Savings for Middle-Class Families
• Households will have less tax to pay.
• More money will be left for daily needs, lifestyle expenses, and future goals.
• You can save and invest more easily.

Simple & Easy-to-Understand Tax System

• The tax brackets are now clearer.
• It’s easier to plan your taxes.
• The system is more transparent and straightforward.

Important: The income tax exemption limits remain unchanged. Tax is calculated based on the following slabs for individual income per annum.

Important Note

These tax slabs apply to individual income per annum. The tax exemption limit remains at ₹4 lakhs (0% tax). For income above ₹4 lakhs, tax is calculated on a progressive basis, meaning only the income within each slab is taxed at the corresponding rate, not the entire income.