With the government confirming that the new income tax framework will take effect from April 1, 2026, many taxpayers are wondering whether it will change how much tax they pay.
At the same time, the release of the Income Tax Rules, 2026, has sparked speculation about a possible revision to tax slabs. However, the latest notifications make it clear that the existing slab structure remains unchanged.
Typically, revisions to tax slabs are announced during the Union Budget. In Budget 2026, Finance Minister Nirmala Sitharaman did not propose any changes to the current income tax rates, indicating continuity for the upcoming financial year.
New income tax rules: What are the current income tax slabs?
Old tax regime
Income up to ₹2.5 lakh: No tax
₹2.5 lakh to ₹5 lakh: 5%
₹5 lakh to ₹10 lakh: 20%
Above ₹10 lakh: 30%
New tax regime
Income up to ₹4 lakh: No tax
₹4 lakh to ₹8 lakh: 5%
₹8 lakh to ₹12 lakh: 10%
₹12 lakh to ₹16 lakh: 15%
₹16 lakh to ₹20 lakh: 20%
₹20 lakh to ₹24 lakh: 25%
Above ₹24 lakh: 30%
What are the income tax slabs from April 1?
There will be no revision in income tax slabs from April 1. This is because Budget 2026 did not introduce any changes to the slab rates under either the old or the new tax regime. Additionally, the notified provisions under the Income Tax Act, 2025 and the Income Tax Rules, 2026, do not include any updates to the existing tax structure, confirming that the current slabs will remain unchanged.
| Income Range (₹) | Old Tax Regime | New Tax Regime |
|---|---|---|
| Up to 2.5 lakh | No tax | - |
| 2.5 lakh to 5 lakh | 5% | - |
| 5 lakh to 10 lakh | 20% | - |
| Above 10 lakh | 30% | - |
| Up to 4 lakh | - | No tax |
| 4 lakh to 8 lakh | - | 5% |
| 8 lakh to 12 lakh | - | 10% |
| 12 lakh to 16 lakh | - | 15% |
| 16 lakh to 20 lakh | - | 20% |
| 20 lakh to 24 lakh | - | 25% |
| Above 24 lakh | - | 30% |
Which tax regime is considered the default?
Under the new income tax rules, the new tax regime is set as the default option. This regime offers fewer exemptions, making it simpler for taxpayers. However, individuals with higher investments or deductions often prefer to continue under the old tax regime to take full advantage of available exemptions.
When will the new rules take effect?
The new Income-tax Rules, 2026, will come into force on 1 April 2026, coinciding with the implementation of the Income Tax Act, 2025. This marks the official start of the updated tax framework.
The Central Board of Direct Taxes notified the rules under the Income-tax Act, 2025, on March 20.
"These rules may be called the Income-tax Rules, 2026. They shall come into force on April 1, 2026," a gazette notification said.
"The notification of the Income-tax Rules, 2026 marks a significant milestone in the transition to the new Income-tax Act, 2025, which comes into effect from 1 April 2026. From a policy perspective, the emphasis has clearly shifted toward simplification, standardisation, and greater transparency. The consolidation of forms, introduction of the "tax year" concept, and rationalisation of provisions are expected to make the law more navigable, particularly for individual taxpayers and businesses," said Sudhakar Sethuraman, Partner, Deloitte India.
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