Budget 2026 Tax Slabs: Check Income Tax Rates and What is New Tax Act

Feb 1, 2026, 17:42 IST

The Union Budget 2026, presented by FM maintains the existing income tax slabs but introduces a structural change, the Income Tax Act, 2025. Effective from April 1, 2026. New Tax Act aims to replace the decades-old Income Tax Act 1961, focusing on simplification, reduced litigation, and a single "Tax Year" framework. 

Key Points

  • Tax rates and slabs remain unchanged for FY 2026-27 (Apr 1, 2025 - Mar 31, 2027).
  • Income up to ₹12 lakh is effectively tax-free under New Tax Regime 2025.
  • New Tax Act 2025 simplifies tax filing, effective April 1, 2026.

The Union Budget 2026, presented by FM maintains the existing income tax slabs but introduces a structural change, the Income Tax Act, 2025. Effective from April 1, 2026. New Tax Act aims to replace the decades-old Income Tax Act 1961, focusing on simplification, reduced litigation, and a single "Tax Year" framework. 

Manisha Waldia
Manisha Waldia

Content Writer

Manisha Waldia is an accomplished content writer with 4+ years of experience dedicated to UPSC, State PCS, and current affairs. She excels in creating expert content for core subjects like Polity, Geography, and History. Her work emphasises in-depth conceptual understanding and rigorous analysis of national and international affairs. Manisha has curated educational materials for leading institutions, including Drishti IAS, Shubhara Ranjan IAS, Study IQ, and PWonly IAS. Email ID: manisha.waldia@jagrannewmedia.com

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