This page collects the main income-tax figures an individual investor meets in tax year 2026–27, under the Income-tax Act, 2025 as amended by the Finance Act, 2026. Tax year 2026–27 runs from 1 April 2026 to 31 March 2027; earlier years follow the Income-tax Act, 1961. Each row gives the figure, who it applies to and from when, and a link to the official source. Figures change with each Finance Act, notification and quarterly review, so check the date and the source before you rely on a number. The explanations sit in the Academy lessons linked at the end of the page.
Slabs, deductions and rebate
| Item | Figure | Who and when it applies | Source |
|---|---|---|---|
| New-regime slab rates (the default) | Nil up to ₹4,00,000; 5% on ₹4–8 lakh; 10% on ₹8–12 lakh; 15% on ₹12–16 lakh; 20% on ₹16–20 lakh; 25% on ₹20–24 lakh; 30% above ₹24 lakh | Individuals who do not opt out of the default regime; tax year 2026–27 (1 April 2026 to 31 March 2027) | Income-tax Act 2025, section 202 |
| Old-regime slab rates, below 60 | Nil up to ₹2,50,000; 5% on ₹2.5–5 lakh; 20% on ₹5–10 lakh; 30% above ₹10 lakh | Individuals who opt out under section 202(4); also non-residents of any age who opt out; tax year 2026–27 | Finance Act 2026, First Schedule, Part III, Paragraph A |
| Old-regime slab rates, resident aged 60 to 79 | Nil up to ₹3,00,000; 5% on ₹3–5 lakh; 20% on ₹5–10 lakh; 30% above ₹10 lakh | Resident individuals aged 60 or more but under 80 who opt out; tax year 2026–27 | Finance Act 2026, First Schedule, Part III, Paragraph A |
| Old-regime slab rates, resident aged 80 or more | Nil up to ₹5,00,000; 20% on ₹5–10 lakh; 30% above ₹10 lakh | Resident individuals aged 80 or more who opt out; tax year 2026–27 | Finance Act 2026, First Schedule, Part III, Paragraph A |
| Standard deduction from salary | ₹75,000 in the new regime; ₹50,000 in the old regime (or the salary, if lower) | Salary income; tax year 2026–27 | Income-tax Act 2025, section 19 |
| Resident rebate, new regime | Up to ₹60,000, so no tax is payable where total income does not exceed ₹12,00,000; marginal relief applies just above ₹12 lakh | Resident individuals taxed under the new regime; tax year 2026–27 | Income-tax Act 2025, section 156(2) |
| Resident rebate, total income up to ₹5 lakh | Up to ₹12,500, so no tax is payable where total income does not exceed ₹5,00,000 | Resident individuals (the rebate that matters in the old regime); tax year 2026–27 | Income-tax Act 2025, section 156(1) |
| Rebate and special-rate gains | The new-regime rebate cannot exceed tax worked out at the slab rates, so it does not reduce tax on special-rate gains such as listed-equity gains; for long-term equity gains this is stated expressly | Resident individuals with capital gains taxed at special rates; tax year 2026–27 | Section 156(3); section 198(7) |
| Health and education cess | 4% of income tax plus surcharge | All individuals, both regimes; tax year 2026–27 | Memorandum explaining the Finance Bill 2026, rates of tax |
| Surcharge bands (headline) | 10% where total income exceeds ₹50 lakh; 15% above ₹1 crore; 25% above ₹2 crore; 37% above ₹5 crore in the old regime only (25% is the top rate in the new regime). Surcharge on dividends and on gains taxed under sections 196 to 198 is capped at 15%. Marginal relief applies at each band | Individuals with high total income; tax year 2026–27 | Finance Act 2026, First Schedule, Part III, Paragraph F; Finance Bill 2026 memorandum |
Capital gains on shares and funds
| Item | Figure | Who and when it applies | Source |
|---|---|---|---|
| Holding period: listed securities, equity-oriented fund units, UTI units, zero-coupon bonds | Short-term if held 12 months or less; long-term if held for more than 12 months | Transfers in tax year 2026–27 | Income-tax Act 2025, section 2(101) |
| Holding period: most other capital assets (for example property, physical gold, unlisted shares) | Short-term if held 24 months or less; long-term if held for more than 24 months | Transfers in tax year 2026–27, unless a special rule applies | Income-tax Act 2025, section 2(101) |
| Short-term gains: equity shares, equity-oriented fund units, business trust units | 20% | Where securities transaction tax is charged on the sale; tax year 2026–27; plus surcharge (capped at 15%) and cess | Income-tax Act 2025, section 196 |
| Long-term gains: equity shares, equity-oriented fund units, business trust units | 12.5% on the year's total of such gains above ₹1,25,000 | Where the securities transaction tax conditions are met; tax year 2026–27; plus surcharge (capped at 15%) and cess | Income-tax Act 2025, section 198 |
| Equity-oriented fund test | At least 65% of the fund's proceeds in equity shares of domestic companies listed on a recognised stock exchange (a fund of funds has a separate 90% test) | Decides whether a fund's units get the equity rates above | Income-tax Act 2025, section 198(8) |
| Specified mutual fund units (debt-oriented funds) | Gains are treated as short-term whatever the holding period, so they are taxed at your slab rate | Units acquired on or after 1 April 2023 of a fund investing more than 65% in debt and money-market instruments (or 65% or more in units of such a fund) | Income-tax Act 2025, section 76 |
TDS thresholds
| Item | Figure | Who and when it applies | Source |
|---|---|---|---|
| Interest from a bank, co-operative bank or post office | TDS applies only once interest exceeds ₹1,00,000 for a senior citizen or ₹50,000 for anyone else | Resident recipients; tax year 2026–27; deducted at the rates in force | Income-tax Act 2025, section 393(1), Table Sl. No. 5(ii) |
| Interest from other payers (for example a company deposit) | TDS applies once interest exceeds ₹10,000 | Resident recipients; tax year 2026–27 | Section 393(1), Table Sl. No. 5(iii) |
| Dividends from an Indian company | TDS at 10%; no TDS where dividends paid to a resident individual other than in cash total ₹10,000 or less in the tax year | Resident shareholders; tax year 2026–27 | Section 393(1), Sl. No. 7, and 393(4), Sl. No. 10(f) |
| Income distributed on mutual fund units | TDS at 10% once the income exceeds ₹10,000 | Resident unit holders; tax year 2026–27 | Section 393(1), Table Sl. No. 4(i)(a) |
How to use these figures
Each figure is one step in a full calculation, not an answer on its own. A TDS threshold only decides whether tax is deducted; the income is still taxable. The rebate depends on total income, including gains, not on salary alone. Work through the method in these lessons:
- Choosing a tax regime: slabs, the rebate and comparing both regimes on the same income.
- Capital gains: classifying an asset and working out the gain before applying a rate.
- Mutual fund taxation: equity-oriented and specified funds, and matching units sold to purchase dates.
- Interest, dividends and TDS: gross income, tax credits and declarations.
Last checked against sources: 23 October 2026. This is the date the figures above were compared with the official sources linked in each row. It is not a professional review of anyone's tax or investment position.