Income-tax rates AY 2027-28 — Finance Act, 2026

Not independently verified

The independent pass that re-read this dataset could not confirm this year. It recorded, in the record’s own words: “The Part I-B slabs and surcharge rest on a single read and have not been independently re-checked.” Treat every figure below as unconfirmed and open the source before you use it.

What this year’s reading did not reach

The Act does not name an assessment year for this charge. Section 3(1) reads "for the tax year commencing on the 1st day of April, 2026, income-tax shall be charged under the provisions of the Income-tax Act, 2025 ... at the rates specified in Part I-B of the First Schedule". A tax year under the Income-tax Act, 2025 is the year in which the income arises, so this is the income of the financial year 2026-27 and has been recorded against assessment year 2027-28 on the older convention; the document itself says only "tax year commencing on the 1st day of April, 2026". No cess is recorded for this charge: section 3 contains no "additional surcharge", no "Health and Education Cess" and no "four per cent", and its record is truncated inside sub-section (7); the four per cent cess in section 2(6) is expressed as applying to the income-tax specified in sub-sections (1) to (5) of section 2, i.e. to the Income-tax Act, 1961 charge, and has not been carried across. Surcharge rates for firms, local authorities, co-operative societies and companies under Part I-B were not separately confirmed and are not recorded. The individual slab tables and the individual surcharge thresholds read out of Part I-B are identical to those read out of Part I-A.

Cess established on verification from the rendered page of section 3 of the Finance Act, 2026, whose sub-section (15) applies the Health and Education Cess at 4 per cent to sub-sections (1) to (5).

New regime: No cap on surcharge specific to this regime was established. The rebate is recorded under the key rebate_87A for consistency with the other years, but the provision is section 156 of the Income-tax Act, 2025, not section 87A.

Which Act set these rates

Act

Finance Act, 2026

Assessment year

2027-28

Income of the previous year

2026-27

What was read

the charging section and the First Schedule

The Act itself

Finance Act, 2026 in this library

Finance Act, 2026 charged income-tax for the assessment year commencing 1 April 2027. What it charged was the income of the previous year 2026-27. The two are a year apart and the difference matters: a table headed by the wrong one is useless.

The slabs

Old

individual (other than a resident of the age of sixty years or more), Hindu undivided family, association of persons, body of individuals, artificial juridical person

Maximum amount not chargeable to income-tax: Rs 2,50,000

Total income	Rate of income-tax
Up to Rs 2,50,000	Nil
Rs 2,50,001 – Rs 5,00,000	5%
Rs 5,00,001 – Rs 10,00,000	20%
Rs 10,00,001 and above	30%

Paragraph A of the block headed "B.- INCOME-TAX UNDER THE INCOME-TAX ACT, 2025" (Part I-B), which section 3(1) applies to the tax year commencing on the 1st day of April, 2026. Expressed cumulatively: nil up to 250000; 5 per cent of the excess over 250000; 12500 plus 20 per cent of the excess over 500000; 112500 plus 30 per cent of the excess over 1000000.

New (section 202 of the Income-tax Act, 2025)

assessee whose income is chargeable to tax under section 202 of the Income-tax Act, 2025

Rate table: section 202(1) of the Income-tax Act, 2025, as put there by The Income-tax Act, 2025 (30 of 2025), which replaces the Income-tax Act, 1961 from this year. Section 202 carries forward the section 115BAC(1A) table as it stood after the Finance Act, 2025, and makes it the default: sub-section (1) opens "Irrespective of anything contained in this Act other than Chapter XVII-B but subject to Parts A, B, E and this Part of this Chapter" and applies unless the person exercises the option under sub-section (4).

Maximum amount not chargeable to income-tax: Rs 4,00,000

Total income	Rate of income-tax
Up to Rs 4,00,000	Nil
Rs 4,00,001 – Rs 8,00,000	5%
Rs 8,00,001 – Rs 12,00,000	10%
Rs 12,00,001 – Rs 16,00,000	15%
Rs 16,00,001 – Rs 20,00,000	20%
Rs 20,00,001 – Rs 24,00,000	25%
Rs 24,00,001 and above	30%

Rebate under section 87A: total income up to Rs 12,00,000; rebate up to Rs 60,000 — Not section 87A: under the Income-tax Act, 2025 the rebate is section 156, the successor to section 87A. Sub-section (2)(a) allows, where income chargeable under section 202(1) does not exceed twelve lakh rupees, "100% of the income-tax payable or Rs 60000, whichever is less"; clause (b) gives marginal relief above twelve lakh rupees, equal to the amount by which the income-tax payable exceeds the amount by which the total income exceeds twelve lakh rupees; sub-section (3) caps the deduction at the income-tax payable at the section 202(1) rates. Sub-section (1) keeps a separate rebate of one hundred per cent of the tax or Rs 12,500, whichever is less, for a resident individual whose total income does not exceed Rs 5,00,000.

Figure from section 3(2), which puts the maximum amount not chargeable to income-tax at 400000 for an assessee taxed under section 202. The rate table for that regime is in the Income-tax Act, 2025, not in this First Schedule.

Senior citizens, very senior citizens, and women

Only where the Act for this year set a separate threshold or a separate table. Where it did not, this page says so.

Resident senior citizens

resident individual of the age of sixty years or more but less than eighty years; table in Part I-B, and section 3(2)

Maximum amount not chargeable to income-tax: Rs 3,00,000

Total income	Rate of income-tax
Up to Rs 3,00,000	Nil
Rs 3,00,001 – Rs 5,00,000	5%
Rs 5,00,001 – Rs 10,00,000	20%
Rs 10,00,001 and above	30%

Resident very senior citizens

resident individual of the age of eighty years or more; table in Part I-B, and section 3(2)

Maximum amount not chargeable to income-tax: Rs 5,00,000

Total income	Rate of income-tax
Up to Rs 5,00,000	Nil
Rs 5,00,001 – Rs 10,00,000	20%
Rs 10,00,001 and above	30%

Resident women

This year’s record carries no separate table or threshold under this head.

Surcharge

Total income	Surcharge on the income-tax
Rs 50,00,000 – Rs 1,00,00,000	10%
Rs 1,00,00,000 – Rs 2,00,00,000	15%
Rs 2,00,00,000 – Rs 5,00,00,000	25%
Rs 5,00,00,000 and above	37%

Surcharge thresholds and rates read from the Part I-B block. The 25 per cent and 37 per cent rates are stated to exclude dividend income and capital gains.

Cess

Cess	Rate
Health and Education Cess	4%

Marginal relief

Section 3(5) provides that where the total income falls within the stated ranges the total amount payable as income-tax and surcharge thereon shall not exceed the amount determined by the formula Tn = Rn + Sn.

Companies, firms, co-operative societies and local authorities

Reproduced in the Act’s own words, because these rates carry conditions a single percentage cannot.

Assessee	Rate as the Act states it
Domestic company	25 per cent where the total turnover or gross receipts in the tax year 2024-25 does not exceed 400 crore rupees, and 30 per cent otherwise
Foreign company	50 per cent on the specified royalties and fees for technical services, and 35 per cent on the balance of the total income
Firms and limited liability partnerships	30 per cent (firms and local authorities, Part I-B)
Co-operative societies	10 per cent where the total income does not exceed 10000 rupees; 1000 rupees plus 20 per cent of the amount by which the total income exceeds 10000 rupees, where it exceeds 10000 but does not exceed 20000 rupees; 3000 rupees plus 30 per cent of the amount by which the total income exceeds 20000 rupees, where it exceeds 20000 rupees (Part I-B)
Local authorities	The Act’s text for this was not reached. No figure is recorded, and none has been supplied from another year.

What changed from the year before

Worked out by comparing this record with the one for the preceding assessment year in this collection. Where a figure is absent from either record, that is said rather than guessed.

Against assessment year 2026-27 (Finance Act, 2026): the previous record’s ‘new (section 115BAC(1A))’ limit of Rs 4,00,000 has no counterpart under that name this year.
Against assessment year 2026-27 (Finance Act, 2026): a regime described as ‘new (section 202 of the Income-tax Act, 2025)’ carries an exemption limit of Rs 4,00,000 this year; the previous record carries no limit under that name.
Against assessment year 2026-27 (Finance Act, 2026): the old regime’s exemption limit is unchanged at Rs 2,50,000.
The top slab rate is unchanged at 30%.
The surcharge is unchanged: 4 tiers, topping out at 37%.
The cess is unchanged: Health and Education Cess 4%.
The company rates are stated differently this year; read both years’ wording rather than taking a single number from either.
The firm rate are stated differently this year; read both years’ wording rather than taking a single number from either.
The co-operative society rates are stated differently this year; read both years’ wording rather than taking a single number from either.
Neither record reaches the local authority rate.
The separate threshold for resident senior citizens is unchanged at Rs 3,00,000.
The separate threshold for resident very senior citizens is unchanged at Rs 5,00,000.

Sources

The Income Tax Department’s own records for this Act. These are the documents the figures above were read out of.

The department’s index of Finance Acts is at https://www.incometaxindia.gov.in/finance-acts.

The years either side

← AY 2026-27

What this page is, and what it is not

The figures are the Finance Act’s own. Every rate, threshold and exemption on this page was taken out of the Income Tax Department’s own text of the Act that charged the year — the charging section and the First Schedule — and the records we read are linked under Sources on each year’s page. The writing around the figures is ours: the arrangement, the headings, the comparison with the year before and every sentence of explanation. Those are not the Act.

These tables are for orientation. The Act governs. A rate table is a finding aid, not the law. The Act, its First Schedule and the provisos in it decide what is payable, and a table cannot carry the provisos. If you are about to rely on a figure here — in a return, in a computation, in a reply to a notice — open the source linked on the year’s page and read the figure in the Act for yourself. Where a record did not reach a rate, this library says so rather than filling the gap.

Income-tax rates for assessment year 2027-28