Finance Minister Nirmala Sitharaman kept income tax rates and slabs unchanged in her Budget 2026, contradictory to last year’s major tax reforms. While the basic structure remains the same, there is no change in income tax rate and slabs.

Meanwhile, if you are planning to switch to the New Tax Regime after this year’s Budget announcement, you must be aware of the income tax slab. There will be no tax for income upto Rs 12 Lakh under New Tax Regime while Rs 12.75 lakh for salaried tax payers with standard deduction of Rs 75,000.

The old tax regime refers to the system of income tax calculation and slabs that existed before the introduction of the new tax regime. In the old tax regime, taxpayers have the option to claim various tax deductions and exemptions. However, in default tax regime, tax rates are lower compared to old tax regime

Tax rates for Individual (resident or non-resident) less than 60 years of age

Tax rates for Individual (resident or non-resident), 60 years or more but less than 80 years of age anytime during the previous year are as under:
 

Tax rates for Individual (resident or non-resident) 80 years of age or more anytime during the previous year are as under:

The new tax regime is the default tax regime for the assessees. However, the eligible taxpayers have the option to opt out of default tax regime and choose to be taxed under old tax regime.