Tax Consultant
887 Points
Posted on 12 June 2026
Under the new tax regime for AY 2026-27, here is how salary income is taxed.
Standard deduction: Rs 75,000 is allowed even in the new regime. This is the only salary deduction available.
New regime tax slabs (AY 2026-27):
- Up to Rs 4 lakh: Nil
- Rs 4-8 lakh: 5%
- Rs 8-12 lakh: 10%
- Rs 12-16 lakh: 15%
- Rs 16-20 lakh: 20%
- Rs 20-24 lakh: 25%
- Above Rs 24 lakh: 30%
Key point: If your total income after the Rs 75,000 standard deduction is Rs 12 lakh or less, the Section 87A rebate makes tax zero. So gross salary of up to Rs 12.75 lakh has zero final tax liability under the new regime.
The new regime is the DEFAULT for AY 2026-27. If you did not file Form 10-IEA before your ITR deadline to opt for the old regime, you are automatically in the new regime. No 80C, 80D, HRA exemption, or self-occupied home loan interest is available.
For the exact step-by-step ITR-1 filing process for salaried individuals this season, this [ITR filing guide for AY 2026-27](https://taxgarden.in/blog/itr-login-itr-filing-step-by-step-all-types-itrs-screenshots-2026) covers the portal screens including the new regime pre-selection.