India Income Tax Act starts April 2026 30% above ₹24L
Business
Big update for your wallet: India's new Income Tax Act kicks in from April 1, 2026.
The top tax rate stays at 30% for those earning above ₹24 lakh, and there's a little relief for folks just over ₹12 lakh so your taxes don't suddenly jump.
Tax regime automatic unless opted out
If you earn up to ₹4 lakh, you pay zero tax.
Salaried folks get a standard deduction of ₹75,000, and for salaried individuals, if your taxable income is up to ₹12.75 lakh (after deductions), you won't owe any tax thanks to the Section 87A rebate.
Higher earners should note: surcharges kick in: 10% if you make over ₹50 lakh, climbing all the way to 25% if you're above ₹2 crore!
This new regime is automatic unless you specifically choose the old one.