New tax regime vs old tax regime slabs explained
Many taxpayers are confused if their income tax slabs will change in the upcoming fiscal year (FY 26-27) as the Income-tax Act, 2025 is scheduled to take effect on April 1, 2026. Under the Income-tax Act, 2025, the government has redesigned the tax system, which has also led to confusion among many taxpayers if income tax slabs under the old and new tax regimes have also been changed.
In her Budget 2026 speech, Finance Minister Nirmala Sitharaman announced that the Income-tax Act, 2025, will be applicable from April 1, 2026. Income tax slabs mentioned in the Act will be applied to income earned during the Financial Year 2026-27.
Also read: No loss of income tax refund under new Income Tax Act 2025: Loss can be set-off with tax refund due under old 1961 income tax act
Let’s find out if under the Income Tax Act, 2025, income tax slabs have changed.
What are the income tax slabs under the old tax regime?
Income tax slabs under new tax regime for FY 2026-27 (AY 2027-28)
Features of new tax regime
Following are the features of the new tax regime for individual taxpayers:
a) The new tax regime is the default tax regime for individual taxpayers. However, an individual has the option to select the old tax regime while filing their income tax return (ITR) in a financial year, provided there is no business income.
c) Tax rebate under Section 87A will continue to be applicable for taxable incomes up to Rs 12 lakh, making them pay zero tax till the income up to Rs 12 lakh.
Will income tax slabs under the old and new tax regimes change from April 1, 2026?
There will be no change in income tax slabs under the old or the new tax regime as the government has not announced any changes in Budget 2026-27. Furthermore, there are no revisions to the current tax structure in the notified provisions under the Income Tax Act, 2025, indicating that the current slabs will not alter.
In her Budget 2026 speech, Finance Minister Nirmala Sitharaman announced that the Income-tax Act, 2025, will be applicable from April 1, 2026. Income tax slabs mentioned in the Act will be applied to income earned during the Financial Year 2026-27.
Also read: No loss of income tax refund under new Income Tax Act 2025: Loss can be set-off with tax refund due under old 1961 income tax act
Let’s find out if under the Income Tax Act, 2025, income tax slabs have changed.
What are the income tax slabs under the old tax regime?
Income tax slabs under new tax regime for FY 2026-27 (AY 2027-28)
Features of new tax regime
Following are the features of the new tax regime for individual taxpayers:
a) The new tax regime is the default tax regime for individual taxpayers. However, an individual has the option to select the old tax regime while filing their income tax return (ITR) in a financial year, provided there is no business income.
Will income tax slabs under the old and new tax regimes change from April 1, 2026?
There will be no change in income tax slabs under the old or the new tax regime as the government has not announced any changes in Budget 2026-27. Furthermore, there are no revisions to the current tax structure in the notified provisions under the Income Tax Act, 2025, indicating that the current slabs will not alter.
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