New Income Tax Regime: Should You Switch? A Slab-by-Slab Breakdown for FY26
Source: Arth Vani
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.
Join the Arth Vani channels
Daily news summaries, IPO & market alerts on Telegram and WhatsApp.
Because you read about Taxation
ITAT Deletes Section 43 Penalty for Foreign Asset Non-Disclosure in Schedule FA
The Income Tax Appellate Tribunal (ITAT) has reportedly deleted a penalty imposed under Section 43 for the non-disclosure of foreign assets in Schedule FA of income tax returns. This decision offers potential relief to taxpayers who might have faced this specific penalty due to omissions in their foreign asset declarations.
NSEL Tax Relief: ITAT Deletes Addition If Account Opened After FY 2011-12
The Income Tax Appellate Tribunal (ITAT) has provided a significant ruling, deleting an 'unexplained cash credit' addition made under Section 68 of the Income Tax Act, 1961. The tribunal's decision hinged on the fact that the concerned National Spot Exchange Limited (NSEL) account was opened after Financial Year 2011-12, indicating a specific timeline consideration for such tax assessments.
ITAT Allows Additional Evidence in Unsecured Loan Case Due to Short Compliance Window
The Income Tax Appellate Tribunal (ITAT) recently permitted a taxpayer to submit additional evidence in a case involving unsecured loans. This decision was made because the taxpayer had a very limited time to comply with the tax authorities' requests, highlighting the importance of adequate time for taxpayers to present their case.
Related Stories
ITAT Deletes Section 43 Penalty for Foreign Asset Non-Disclosure in Schedule FA
The Income Tax Appellate Tribunal (ITAT) has reportedly deleted a penalty imposed under Section 43 for the non-disclosure of foreign assets in Schedule FA of income tax returns. This decision offers potential relief to taxpayers who might have faced this specific penalty due to omissions in their foreign asset declarations.
NSEL Tax Relief: ITAT Deletes Addition If Account Opened After FY 2011-12
The Income Tax Appellate Tribunal (ITAT) has provided a significant ruling, deleting an 'unexplained cash credit' addition made under Section 68 of the Income Tax Act, 1961. The tribunal's decision hinged on the fact that the concerned National Spot Exchange Limited (NSEL) account was opened after Financial Year 2011-12, indicating a specific timeline consideration for such tax assessments.
ITAT Allows Additional Evidence in Unsecured Loan Case Due to Short Compliance Window
The Income Tax Appellate Tribunal (ITAT) recently permitted a taxpayer to submit additional evidence in a case involving unsecured loans. This decision was made because the taxpayer had a very limited time to comply with the tax authorities' requests, highlighting the importance of adequate time for taxpayers to present their case.
India Inc's FY26 Hiring Slows to 1.8% Despite 9.4% Wage Hikes
Despite an average 9.4% wage increase, Indian companies across sectors like finance and IT are projected to add only 1.8% more employees in FY26. This slowdown in hiring indicates a focus on productivity and efficiency over headcount growth.