Following are the revised slabs and rates under new tax regime announced in the FY26 Budget:

Union finance minister Niramala Sitharaman saved the best for the last, announcing the new income-tax slabs at the very end of the Budget speech in Parliament on Saturday.

The biggest news of the Budget for most people will be Sitharaman’s announcement that income up to Rs 12 lakh annually will be exempt from tax.

"I am now happy to announce that there will be no income tax payable up to income of Rs 12 lakh – i.e. average income of Rs 1 lakh per month other than special rate income such as capital gains – under the new regime," the finance minister said.

"The new structure will substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investment," Sitharaman said in her Budget speech.

The government is foregoing direct tax revenue of Rs 1 lakh crore, the finance minister said.

There is a fine print, that the income will likely have TDS deducted anyway and the refund will have to be claimed.

Nevertheless, the income-tax announcement will no doubt make many feel Achchhe Din are here, finally.

Here are the revised income-tax slabs. The FM has said a new, simplified income-tax bill will be introduced next week.

Income up to Rs 4 lakh (per annum) ----- Nil tax

Between Rs 4 and 8 lakh ---------------- 5 per cent tax

Between Rs 8 and 12 lakh --------------- 10 per cent

Between Rs 12 and 16 lakh -------------- 15 per cent

Between Rs16 and 20 lakh --------------- 20 per cent

Between Rs 20 and 24 lakh -------------- 25 per cent

Above Rs 24 lakh ------------------------- 30 per cent

Nil tax slab will apply for annual income up to Rs 12 lakh (Rs 12.75 lakh for salaried tax payers with standard deduction of Rs 75,000) under new tax regime.

TTO Graphics