Library / Income-tax Act, 2025: The Professional's Master Guide
Appendix G: Rates and Thresholds at a Glance (Tax Year 2026-27)
Item | Figure |
|---|---|
New regime slabs | Nil up to 4 lakh; 5% to 8 lakh; 10% to 12 lakh; 15% to 16 lakh; 20% to 20 lakh; 25% to 24 lakh; 30% above |
Old regime slabs (below 60) | Nil up to 2.5 lakh; 5% to 5 lakh; 20% to 10 lakh; 30% above |
Rebate (section 156) | New: up to Rs. 60,000 if income up to Rs. 12 lakh; Old: up to Rs. 12,500 if income up to Rs. 5 lakh |
Standard deduction (salary) | New Rs. 75,000; Old Rs. 50,000 |
Surcharge (individuals) | 10% above 50 lakh; 15% above 1 crore; 25% above 2 crore; 37% above 5 crore (old regime only) |
Cess | 4% |
STCG listed equity (section 196) | 20% |
LTCG listed equity (section 198) | 12.5% above Rs. 1,25,000 |
LTCG other assets (section 197) | 12.5% (20% with indexation option for pre-23 July 2024 land and building of resident individuals and HUFs) |
Company rates | 25% or 30% (normal); 22% (section 200); 15% (section 201); foreign company 35% |
MAT | 14% of book profit; final tax from Tax Year 2026-27 |
Firm and LLP | 30%, surcharge 12% above Rs. 1 crore |
Presumptive business | 8% (6% digital); limit Rs. 2 crore (Rs. 3 crore) |
Presumptive profession | 50%; limit Rs. 50 lakh (Rs. 75 lakh) |
Tax audit | Business Rs. 1 crore (Rs. 10 crore); profession Rs. 50 lakh |
Cash expense limit | Rs. 10,000 per person per day (Rs. 35,000 transporters) |
Gifts from non-relatives | Taxable if aggregate exceeds Rs. 50,000 |
Advance tax | If tax Rs. 10,000 or more; 15%, 45%, 75%, 100% |
Interest (sections 423 to 425) | 1% a month |
Late return fee | Rs. 5,000 (Rs. 1,000 if income up to Rs. 5 lakh) |
Updated return | Up to 48 months; additional tax 25%, 50%, 60%, 70% |
HRA 50% cities | Mumbai, Delhi, Kolkata, Chennai, Ahmedabad, Bengaluru, Hyderabad, Pune |
Gratuity exemption cap | Rs. 20 lakh |
Leave encashment exemption cap | Rs. 25 lakh |
Employer retirement contribution cap | Rs. 7.5 lakh (PF, NPS, superannuation together) |
Section 123 limit | Rs. 1.5 lakh; plus Rs. 50,000 own NPS under section 124 |
Thin capitalisation | Interest above Rs. 1 crore to AEs capped at 30% of EBITDA |
TP documentation threshold | International transactions above Rs. 1 crore |
SDT threshold | Rs. 20 crore |
Safe harbour for IT services | Transactions up to Rs. 2,000 crore; margin 15.5% |
GAAR threshold | Tax benefit above Rs. 3 crore |
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