Tax Updates
Budget 2026: what actually changed for Indian taxpayers
New slabs under the new regime, standard deduction hike, capital gains tweaks and what it means for salaried employees, freelancers and business owners.
Budget 2026 leaned further into the new tax regime — and if you're still on the old one, the maths has shifted meaningfully. Here's what actually changed.
New regime slabs (FY 2026-27)
- Up to ₹4L — Nil
- ₹4L – ₹8L — 5%
- ₹8L – ₹12L — 10%
- ₹12L – ₹16L — 15%
- ₹16L – ₹20L — 20%
- ₹20L – ₹24L — 25%
- Above ₹24L — 30%
Standard deduction bumped to ₹75,000
Salaried and pensioners get a higher standard deduction under the new regime. Effective zero tax now extends to roughly ₹12.75L for salaried taxpayers when you combine the rebate and standard deduction.
Capital gains — no big surprises this year
LTCG on equity and equity MFs stays at 12.5% beyond ₹1.25L exemption. LTCG on unlisted shares and property continues at 12.5% without indexation (with the grandfathered exception for property bought before 23 July 2024).
TDS clean-up
Several TDS thresholds have been rationalised — rent (194-I), commission (194-H), and professional fees (194-J) thresholds are up, reducing paperwork for smaller businesses.
If your ITR strategy is still built around the old regime, it's worth a 20-minute call — the switch may now save you more than the deductions you're clinging to.