Income TaxMarch 12, 2026 ā¢ Taxation Specialist
New Tax Regime Slabs & Rules: Essential Guide for Finance Students
For CA, CS, and CMA students, staying updated on direct tax slab rates is essential. In recent budgets, the Government of India has heavily incentivized the New Tax Regime (under Section 115BAC), making it the default regime for individual taxpayers.
Let's break down the income tax slabs and computational guidelines relevant for both exams and audits.
1. Income Tax Slab Rates (New Tax Regime) š
| Income Slabs (ā¹) | Tax Rate (%) |
|---|---|
| Up to ā¹3,00,000 | Nil |
| ā¹3,00,001 to ā¹6,00,000 | 5% |
| ā¹6,00,001 to ā¹9,00,000 | 10% |
| ā¹9,00,001 to ā¹12,00,000 | 15% |
| ā¹12,00,001 to ā¹15,00,000 | 20% |
| Above ā¹15,00,000 | 30% |
2. Key Benefits & Exemptions š
- Standard Deduction: Individuals receiving salaried income can claim a flat standard deduction of ā¹50,000 from their gross total income.
- Tax Rebate: Under Section 87A, a resident individual qualifies for a full rebate if their taxable income does not exceed ā¹7,00,000. This means no tax is payable up to a net taxable income of ā¹7 Lakhs!
- Deductions Foregone: Remember that under Section 115BAC, popular Chapter VI-A deductions (such as Section 80C, 80D, and HRA) cannot be claimed.