Tax rules changed, now income up to ₹ 12 lakh will be tax free!:

New Delhi. Before the budget to be presented on 1 February 2026, there is great news for taxpayers. Income Tax Change Rules 2026 Under this, the government has given great relief to the middle class and employed people. The biggest attraction of the new rules is the provision of ‘zero tax’ on income up to ₹12 lakh. This change is going to prove to be a game-changer for the taxpayers adopting the new tax regime, which will increase their saving and investment capacity.

New Tax Slab 2026: The struggle of the middle class

Income Tax New Slab 2026 Under this, the tax structure has been completely liberalized. In the new system, the basic exemption limit has been increased from ₹ 3 lakh to ₹ 4 lakh. Along with this, the tax rebate available under Section 87A has been increased from ₹25,000 to ₹60,000. This means that if your annual income is up to ₹12 lakh, your tax liability after the rebate will be zero.

New tax slab (FY 2026-27):

₹0 – ₹4 Lakh: 0%

₹4 – ₹8 Lakh: 5%

₹8 – ₹12 lakh: 10%

₹12 – ₹16 lakh: 15%

₹16 – ₹20 lakh: 20%

₹20 – ₹24 lakh: 25%

More than ₹24 lakh: 30%

Exemption Rules 2026: Big relief in standard deduction

Income Tax Exemption Rules 2026 According to , there is a proposal to increase the Standard Deduction for salaried people from ₹ 75,000 to ₹ 1,00,000. This step has been taken to provide additional relief to the salaried class amid rising inflation. However, for those choosing the old tax regime, the limit of ₹ 1.5 lakh under Section 80C and the exemption of ₹ 2 lakh on home loan will remain as before, but the entire emphasis of the government is on making the ‘New Regime’ simple and attractive.

ITR Filing 2026: Now tax return will be done in a jiffy

Income Tax Return Filing Rules 2026 Now paying tax has become even easier under this. The new system is based on ‘pre-filled data’ and ‘Artificial Intelligence’ (AI), which will automatically fill your salary, bank interest and stock market profits in the form. Now the concept of ‘Unified Tax Year’ has been introduced by eliminating the hassle of assessment year. Apart from this, the speed of refund has also been accelerated, so that now the money will come to your account in a few days instead of weeks.