Tax Comparison: FY 2025-26 vs 2026-27

Side-by-side comparison of tax slabs, deductions, and key changes from Union Budget 2026.

Updated with Budget 2026 changes

Budget 2026 Summary

Union Budget 2026 has kept income tax slabs unchanged for both regimes. Key changes include:

  • TCS rates reduced - Foreign remittances (education/medical) now at 2% instead of 5%
  • ITR deadline extended - Revised/belated returns now due 31st March (was 31st December)
  • STT increased - Securities Transaction Tax on derivatives revised upward
  • MACT interest exempt - Motor accident compensation interest now tax-free
  • Income Tax Act 2025 - New consolidated tax act effective from 1 April 2026
View all Budget 2026 changes

New Regime Tax Slabs Comparison

Income Slab FY 2025-26 Rate FY 2026-27 Rate Change
Up to Rs 4,00,000 Nil Nil No change
Rs 4,00,001 - 8,00,000 5% 5% No change
Rs 8,00,001 - 12,00,000 10% 10% No change
Rs 12,00,001 - 16,00,000 15% 15% No change
Rs 16,00,001 - 20,00,000 20% 20% No change
Rs 20,00,001 - 24,00,000 25% 25% No change
Above Rs 24,00,000 30% 30% No change

Key Deductions Comparison

Deduction FY 2025-26 FY 2026-27 Change
Standard Deduction (New Regime) Rs 75,000 Rs 75,000 No change
Standard Deduction (Old Regime) Rs 50,000 Rs 50,000 No change
Section 80C Limit Rs 1,50,000 Rs 1,50,000 No change
Section 80D (Self) Rs 25,000 Rs 25,000 No change
Section 80D (Senior Citizen) Rs 50,000 Rs 50,000 No change
NPS Employer Contribution 14% of salary 14% of salary No change

TCS Rates - Budget 2026 Changes

Category FY 2025-26 FY 2026-27 Change
LRS - Education (with loan) 0.5% 2% Increased
LRS - Education (without loan) 5% 2% Reduced
LRS - Medical Treatment 5% 2% Reduced
Tour Package 5% 2% Reduced
Other LRS (above Rs 7L) 20% 5% Significantly reduced

Rebate Under Section 87A

Regime FY 2025-26 FY 2026-27 Change
New Regime - Income Limit Rs 12,00,000 Rs 12,00,000 No change
New Regime - Max Rebate Rs 60,000 Rs 60,000 No change
Old Regime - Income Limit Rs 5,00,000 Rs 5,00,000 No change
Old Regime - Max Rebate Rs 12,500 Rs 12,500 No change

Capital Gains Tax Rates

Type FY 2025-26 FY 2026-27 Change
LTCG on Equity/MF 12.5% 12.5% No change
LTCG Exemption Limit Rs 1,25,000 Rs 1,25,000 No change
STCG on Equity/MF 20% 20% No change
Property LTCG 20% with indexation 20% with indexation No change

Tax Savings Example

For an individual with Rs 15,00,000 annual income (no deductions claimed):

Component FY 2024-25 (New Regime) FY 2025-26 (New Regime)
Gross Income Rs 15,00,000 Rs 15,00,000
Standard Deduction Rs 50,000 Rs 75,000
Taxable Income Rs 14,50,000 Rs 14,25,000
Tax Payable Rs 1,45,000 Rs 1,06,250
Cess (4%) Rs 5,800 Rs 4,250
Total Tax Rs 1,50,800 Rs 1,10,500
Annual Savings in FY 2025-26 Rs 40,300