Question
I have heard there is no tax up to 12 lakh now. Is that true for FY 2026-27, and what about salaried people?
Answer
Yes. Under the new tax regime for FY 2026-27, a resident individual with taxable income up to Rs 12 lakh pays zero tax, thanks to the enhanced Section 87A rebate of up to Rs 60,000. For salaried taxpayers, the Rs 75,000 standard deduction pushes the effective tax-free salary to about Rs 12.75 lakh. The rebate applies only to normal income, not to special-rate income like capital gains. The old regime rebate threshold remains far lower at Rs 5 lakh. Check your exact liability with our income tax calculator.
This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.