Income Tax Slabs for AY 2026-27: New Tax Regime vs Old Tax Regime | Kallapotti Learn [ Kallapotti](/) [About](/about-us) [Features](/features) Business Types [ Restaurants & Food Outlets Fine dine, QSR, cafe, bakery & cloud kitchens](/restaurant-billing-software) [ Textile & Garments Sarees, apparel, boutiques & footwear matrix](/textile-billing-software) [ Retail & Wholesale Supermarkets, FMCG, weighing scales & Khata](/retail-wholesale-billing-software) [Integrations](/integrations) [Learn](/learn) [Pricing](/pricing) Resources [ Downloads Windows PC & Android app stores](/downloads) [ FAQ Frequently asked questions & answers](/faq) [ GST Calculator Free Indian GST rate calculator](/gst-calculator) [ Guides & Articles Tutorials & POS documentation](/learn) [ Support & Contact Direct phone, email & helpdesk](/contact-us) [ Search Site Find features, blogs & outlets](/search) [Book A Demo](/contact-us?intent=demo) [Access Portal ](https://links.kallapotti.com/portal) [ All Articles](/learn) Personal Tax # Income Tax Slabs for AY 2026-27: New Tax Regime vs Old Tax Regime Official Income Tax Slabs for AY 2026-27 from incometax.gov.in. Compare New Regime (u/s 115BAC) slabs, Section 87A rebate up to ₹60,000 (tax-free up to ₹12 Lakh), Old Regime slabs, and surcharge rates. 8 min read Updated 16 September 2026 Ahopez Innovations Team Income TaxTax SlabsAY 2026-27New RegimeOld RegimeSection 87A115BAC As per the official Income Tax Department guidelines for Assessment Year 2026-27, the New Tax Regime under Section 115BAC is the default tax regime for Individuals, HUFs, AOPs, and BOIs. Taxpayers can opt out of the default regime and choose the Old Tax Regime. Salaried individuals can switch every year directly in their ITR before the Section 139(1) due date. ## New Tax Regime Slabs for AY 2026-27 (Default u/s 115BAC) Income SlabIncome Tax RateTax Calculation FormulaUp to ₹4,00,000NilNil₹4,00,001 – ₹8,00,0005%5% of amount exceeding ₹4,00,000₹8,00,001 – ₹12,00,00010%₹20,000 + 10% of amount exceeding ₹8,00,000₹12,00,001 – ₹16,00,00015%₹60,000 + 15% of amount exceeding ₹12,00,000₹16,00,001 – ₹20,00,00020%₹1,20,000 + 20% of amount exceeding ₹16,00,000₹20,00,001 – ₹24,00,00025%₹2,00,000 + 25% of amount exceeding ₹20,00,000Above ₹24,00,00030%₹3,00,000 + 30% of amount exceeding ₹24,00,000 Info Section 87A Full Tax Rebate (New Regime): Resident Individuals with total taxable income up to ₹12,00,000 receive a 100% tax rebate of up to ₹60,000 under Section 87A — making taxable income up to ₹12 Lakh 100% tax-free! For salaried taxpayers with the ₹75,000 standard deduction, income up to ₹12.75 Lakh incurs zero tax liability. ## Old Tax Regime Slabs for AY 2026-27 (Optional) Income SlabIndividual (< 60 Yrs)Senior Citizen (60–80 Yrs)Super Senior (> 80 Yrs)Up to ₹2,50,000NilNilNil₹2,50,001 – ₹3,00,0005% above ₹2.5LNilNil₹3,00,001 – ₹5,00,0005% above ₹2.5L5% above ₹3.0LNil₹5,00,001 – ₹10,00,000₹12,500 + 20% above ₹5L₹10,000 + 20% above ₹5L20% above ₹5LAbove ₹10,00,000₹1,12,500 + 30% above ₹10L₹1,10,000 + 30% above ₹10L₹1,00,000 + 30% above ₹10L Note Section 87A Rebate (Old Regime): Resident individuals with taxable income up to ₹5,00,000 receive a tax rebate of up to ₹12,500 (or actual tax, whichever is less). Taxable income up to ₹5 Lakh has zero tax in the Old Regime. ## Applicable Surcharge Rates (AY 2026-27) Total Income BracketSurcharge (New Tax Regime)Surcharge (Old Tax Regime)Up to ₹50 LakhNilNil₹50 Lakh to ₹1 Crore10%10%₹1 Crore to ₹2 Crore15%15%₹2 Crore to ₹5 Crore25%25%Above ₹5 Crore25% (Capped at 25%)37%Note: The enhanced surcharge of 25% and 37% is not levied on capital gains under sections 111A, 112, 112A, and dividend income (maximum surcharge on these incomes is capped at 15%). Health & Education Cess is 4% on total tax plus surcharge in both regimes. ## Switching Between Regimes (Salaried vs Business) - Salaried Employees (Non-Business): You can choose between the New and Old Tax Regime every financial year directly while filing your Income Tax Return (ITR-1 / ITR-2) on or before the due date specified under Section 139(1). - Business & Profession (ITR-3 / ITR-4): To opt out of the default New Tax Regime, you must file Form 10-IEA on or before the due date under Section 139(1). Switching back to the New Regime is permitted only once in a lifetime via Form 10-IEA. ## File GST returns with zero manual work Kallapotti generates GSTR-1-ready data, auto-calculates HSN codes, and tracks ITC — all from your daily billing. [Start 14-Day Free Trial ](/pricing) [← Browse all articles](/learn) [ Kallapotti](/) Enterprise-grade billing platform built for scale. Fast invoices, inventory control, and multi-terminal billing for modern businesses. 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