Income Tax Act 2025 and Budget 2026 revise tax slabs and rebate for individuals and HUFs.

Exam-focused facts from the 22 March 2026 current affairs briefing.

Key facts

Income Tax Act 2025 sets new regime tax slabs: up to ₹3,00,000 nil, ₹3,00,001–₹6,00,000 5%, ₹6,00,001–₹9,00,000 10%, ₹9,00,001–₹12,00,000 15%, ₹12,00,001–₹15,00,000 20%, above ₹15,00,000 30%.
Budget 2026 enhances rebate under Section 87A so taxpayers with income up to ₹7,00,000 have zero tax liability.
New regime now allows salaried individuals a standard deduction of ₹50,000.
Allowed deductions in new regime include standard deduction, employer’s contribution to NPS, and family pension deduction.
Disallowed deductions in new regime cover Section 80C instruments, HRA, LTA, and home-loan interest for self-occupied property.