Author: sufi

A salaried individual earning ₹25 lakh pays ₹3,19,800 tax (including 4% cess) under the new tax regime for FY 2026-27 — an effective rate of 12.79%. After the ₹75,000 standard deduction, ₹24,25,000 is taxed across six slabs, and only the thin slice above ₹24 lakh faces the 30% top rate. No surcharge applies below ₹50 lakh. Try it yourself: use our new tax regime calculator for your exact income. In this guide Slab-wise calculation: ₹25L salary (FY 2026-27) Taxable income after ₹75,000 standard deduction: ₹24,25,000 Income slabRateTaxUp to ₹4,00,000Nil₹0₹4,00,001 – ₹8,00,0005%₹20,000₹8,00,001 – ₹12,00,00010%₹40,000₹12,00,001 – ₹16,00,00015%₹60,000₹16,00,001 – ₹20,00,00020%₹80,000₹20,00,001 – ₹24,00,00025%₹1,00,000₹24,00,001 –…

A salaried individual earning ₹20 lakh pays ₹1,92,400 tax (including 4% cess) under the new tax regime for FY 2026-27 — an effective rate of just 9.62%. The ₹75,000 standard deduction brings taxable income to ₹19,25,000; with no 87A rebate at this level, slab rates apply in full, but no surcharge kicks in below ₹50 lakh. Try it yourself: use our new tax regime calculator for your exact income. In this guide Slab-wise calculation: ₹20L salary (FY 2026-27) Taxable income after ₹75,000 standard deduction: ₹19,25,000 Income slabRateTaxUp to ₹4,00,000Nil₹0₹4,00,001 – ₹8,00,0005%₹20,000₹8,00,001 – ₹12,00,00010%₹40,000₹12,00,001 – ₹16,00,00015%₹60,000₹16,00,001 – ₹19,25,00020%₹65,000Slab tax₹1,85,000Plus 4% health…

Zero. Tax on ₹10 lakh income is nil under the new tax regime for FY 2026-27. Slab tax on ₹10 lakh is only ₹40,000, and the Section 87A rebate — up to ₹60,000 for resident individuals with taxable income up to ₹12 lakh — wipes it out entirely. Salaried or self-employed, at ₹10 lakh you pay no income tax in the new regime, with no deductions to claim and no paperwork to maintain. Try it yourself: use our new tax regime calculator to check your exact liability for any income. In this guide Slab-wise calculation: ₹10,00,000 (FY 2026-27) New regime…

Yes — tax on ₹12 lakh income is zero under the new tax regime for FY 2026-27. Slab tax on ₹12 lakh comes to ₹60,000, but Section 87A gives a rebate of up to ₹60,000 to resident individuals with taxable income up to ₹12 lakh — wiping the liability out completely. For salaried individuals, the zero-tax limit stretches to ₹12.75 lakh thanks to the ₹75,000 standard deduction. No investments, no proofs, no paperwork. Try it yourself: use our new tax regime calculator to check your exact liability for any income. In this guide Slab-wise tax calculation for ₹12 lakh (FY…

For FY 2025-26 (AY 2026-27), an HUF is taxed under the new-regime slab structure with nil tax up to ₹4 lakh, followed by rates of 5%, 10%, 15%, 20%, 25% and 30% as income rises. However, an HUF cannot claim the Section 87A rebate available to eligible resident individuals, so the Budget 2025 provision that can result in zero tax for an individual with taxable income up to ₹12 lakh does not create the same outcome for an HUF. The distinction matters when calculating HUF tax. An HUF with ₹12 lakh of taxable income from normal slab-rate sources would have…

Introduction For FY 2025-26 (AY 2026-27), the new tax regime for senior citizens does not provide a higher basic exemption limit based on age. The same slab structure applies to senior citizens, super senior citizens and younger individual taxpayers, starting with a ₹4 lakh nil-rate slab. A significant benefit can still arise through Section 87A, which offers a rebate of up to ₹60,000 for eligible resident individuals with taxable income up to ₹12 lakh, subject to the applicable conditions. The ₹3 lakh basic exemption for senior citizens and ₹5 lakh exemption for super senior citizens are features of the old…

No, Section 80G deduction cannot be claimed under the new tax regime for FY 2025-26 (AY 2026-27). The Income Tax Department specifically confirms that a taxpayer opting for the new tax regime under Section 115BAC cannot claim a deduction under Section 80G for eligible donations. This means an eligible charitable donation may still be made, but it will not reduce taxable income when the return is filed under the new regime. Taxpayers who want to claim an eligible 80G deduction generally need to choose the old tax regime and satisfy the conditions applicable to the donation. Discover More About:👇 Deduction…

Leave encashment received at retirement qualifies for income-tax exemption even under the new tax regime, subject to the conditions of Section 10(10AA). For eligible government employees, the entire amount is fully exempt. For non-government employees, the exemption is capped at ₹25 lakh and determined by a prescribed calculation. Leave encashment received during employment, however, remains fully taxable as salary income regardless of the tax regime chosen. The new tax regime under Section 115BAC does not withdraw this retirement-specific exemption. This distinction matters because many taxpayers assume that opting for the new regime eliminates all salary-related exemptions—which is not accurate. This…

Yes, surcharge applies under the new tax regime. It is an additional charge calculated on your income-tax liability once total income crosses the prescribed thresholds. For FY 2025-26 (AY 2026-27), surcharge starts at 10% above ₹50 lakh, rises to 15% above ₹1 crore and 25% above ₹2 crore. The new regime caps the maximum surcharge at 25%, even for income above ₹5 crore, unlike the old regime where it can reach 37%. The surcharge is calculated on the income tax amount, not directly on your total income. The final liability also includes 4% Health and Education Cess, applied after adding…

A home loan in the new tax regime does not offer the same tax benefits as the old regime. For a self-occupied property, you cannot claim the interest deduction under Section 24(b) or the principal repayment deduction under Section 80C. However, for a let-out property, you can still deduct eligible home-loan interest from your rental income. The treatment of any resulting house-property loss is also restricted. This guide explains the rules for FY 2025-26 (AY 2026-27). It clarifies the crucial differences between principal and interest, and between self-occupied and let-out properties, so you can understand exactly what applies to your situation. Discover More About:👇 Home Loan…