New Income Tax Regime: Should You Switch? A Slab-by-Slab Breakdown for FY26

Source: Arth Vani
Arth Insight · What this means for your wallet
- With the revised slabs and higher standard deduction, the new regime is now the default for most salaried taxpayers — but exemptions still tilt the maths for so
With the revised slabs and higher standard deduction, the new regime is now the default for most salaried taxpayers — but exemptions still tilt the maths for some.
- ▸New regime now default for filers
- ▸Standard deduction raised to ₹75,000
- ▸No tax up to ₹7 lakh via rebate
- ▸Old regime still better with high deductions
With the revised slabs and higher standard deduction, the new regime is now the default for most salaried taxpayers — but exemptions still tilt the maths for some.
The development marks a significant shift in how Indian investors and institutions are positioning themselves for the coming quarters. Analysts tracking the sector note that liquidity, policy direction and global cues will remain the dominant themes. Retail participation has continued to deepen, with SIP inflows and demat account additions sustaining their multi-year uptrend.
Market participants will closely watch upcoming data prints, corporate earnings and commentary from regulators. For long-term investors, experts reiterate the importance of asset allocation, diversification and staying invested through volatility rather than attempting to time the market.
Arth Vani will continue to track this story and bring you verified, jargon-free updates as they develop. Readers are reminded that the information here is for educational purposes and not a recommendation to buy or sell any security.
Tax figures shown are indicative estimates for education only and depend on your specific situation. Consult a qualified tax professional or the Income-Tax Department before acting.
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