Budget 2026 retained existing slabs — no changes for FY 2026-27. One line, buried in coverage, that decides lakhs of declarations: stability is itself the verdict, because every salaried saver can now plan the full year on confirmed numbers (87A ₹60K to ₹12L, 75K standard deduction, slabs to 30% above ₹24L, equity STCG 20% flat). This post renders the authoritative verdict table — what stayed, what it means per income band, and the three actions to take before the declaration window.
Part of the India wealth & tax guide. Model your salary in the income tax calculator; check capital moves in capital gains tax.
The verdict table: what Budget 2026 kept
| Element | Status FY 2026-27 | Action |
|---|---|---|
| New-regime slabs | Unchanged (nil–30%) | Plan full year confidently |
| 87A rebate ₹60K / ₹12L | Retained | Zero-tax to ₹12.75L salaried holds |
| Standard deduction ₹75K | Retained | Declare regime early |
| Equity STCG 20% / LTCG 12.5% | Retained | Harvest per existing strategy |
| New Income-tax Act 2025 | In force from April 2026 | Section numbers shift; substance same |
Cross-check each row in the regime guide (crossover salaries) and LTCG vs FD tax (harvesting). Stability rewards early declaration — file regime choice now, not in March.
What it means per income band
- Under ₹12.75L salaried: effectively zero-tax under new regime — redirect planning energy from tax-saving to step-up SIPs (see ₹1 crore math).
- ₹12.75–20L: marginal-relief zone plus slab climb — model both regimes; 80C/HRA stacks decide.
- Above ₹20L: 25–30% slabs dominate — old-regime deductions, HRA structuring and capital-gains timing carry real money.
- Capital income: STCG 20% flat vs LTCG 12.5% above ₹1.25L/yr exemption — holding-period discipline unchanged.
Three actions before the window closes
- Declare your regime with the employer now using modeled numbers, not rules of thumb.
- Front-load 80C (PPF before April 5, ELSS monthly) if old-regime-bound — back-loaded March rushes misprice.
- Schedule gain harvesting across financial years against the ₹1.25L exemption instead of bunching sales in March.
Revisit next February when Budget 2027 lands — this page refreshes yearly with the verdict table as its anchor (see PPF timing for April-date discipline).
Informational purposes only — not tax advice. Budget provisions evolve; verify the Finance Act text and consult a qualified professional. See /terms.