New Tax Regime: Section 202(1)
Section 202(1) applies to an individual, a Hindu undivided family, an association of persons (other than a co-operative society), a body of individuals and an artificial juridical person, unless the person exercises the option under section 202(4). The Finance Act, 2026 did not change the slabs in this Table.
| Sl. No. | Total income | Rate of tax |
|---|---|---|
| 1 | Up to ₹4,00,000 | Nil |
| 2 | From ₹4,00,001 to ₹8,00,000 | 5% |
| 3 | From ₹8,00,001 to ₹12,00,000 | 10% |
| 4 | From ₹12,00,001 to ₹16,00,000 | 15% |
| 5 | From ₹16,00,001 to ₹20,00,000 | 20% |
| 6 | From ₹20,00,001 to ₹24,00,000 | 25% |
| 7 | Above ₹24,00,000 | 30% |
Under section 202(2) the total income for this Table is computed without the exemptions and deductions listed there and without set off of loss under the head Income from house property against any other head. Section 56 of the Finance Act, 2026 omitted sub-clause (iii) (section 144) from that list with effect from 1 April 2026.
Work Out Your Income-tax for Tax Year 2026-27
Enter total income after all deductions. The calculator applies the slabs, the section 156 rebate, surcharge with marginal relief above ₹50,00,000 and 4% cess.
For income taxed at the slab rates only. Capital gains and winnings taxed at special rates, agricultural income and relief under sections 157 to 160 are not included. Figures are from the Income-tax Act, 2025 and the Finance Act, 2026 as read on this page.
Rates on Exercising the Option Under Section 202(4)
Where the option under section 202(4) is exercised, section 202(1) does not apply and tax is charged at the rates in Part I-B of the First Schedule to the Finance Act, 2026 (section 3(1) of that Act). This is commonly called the old regime. Part III of the same Schedule repeats these rates for salary TDS and advance tax.
| Assessee | Total income | Income-tax |
|---|---|---|
| Individual, Hindu undivided family, association of persons, body of individuals, artificial juridical person (item I) | Does not exceed ₹2,50,000 | Nil |
| Item I | Exceeds ₹2,50,000 but does not exceed ₹5,00,000 | 5% of the amount by which the total income exceeds ₹2,50,000 |
| Item I | Exceeds ₹5,00,000 but does not exceed ₹10,00,000 | ₹12,500 plus 20% of the amount by which the total income exceeds ₹5,00,000 |
| Item I | Exceeds ₹10,00,000 | ₹1,12,500 plus 30% of the amount by which the total income exceeds ₹10,00,000 |
| Resident individual of sixty years or more but less than eighty years at any time during the tax year (item II) | Does not exceed ₹3,00,000 | Nil |
| Item II | Exceeds ₹3,00,000 but does not exceed ₹5,00,000 | 5% of the amount by which the total income exceeds ₹3,00,000 |
| Item II | Exceeds ₹5,00,000 but does not exceed ₹10,00,000 | ₹10,000 plus 20% of the amount by which the total income exceeds ₹5,00,000 |
| Item II | Exceeds ₹10,00,000 | ₹1,10,000 plus 30% of the amount by which the total income exceeds ₹10,00,000 |
| Resident individual of eighty years or more at any time during the tax year (item III) | Does not exceed ₹5,00,000 | Nil |
| Item III | Exceeds ₹5,00,000 but does not exceed ₹10,00,000 | 20% of the amount by which the total income exceeds ₹5,00,000 |
| Item III | Exceeds ₹10,00,000 | ₹1,00,000 plus 30% of the amount by which the total income exceeds ₹10,00,000 |
Rebate Under Section 156
The rebate is for an individual resident in India. It is deducted from the income-tax computed before allowing the rebate.
| Sub-section | Condition | Rebate |
|---|---|---|
| 156(1) | Total income does not exceed ₹5,00,000 | 100% of the income-tax payable or ₹12,500, whichever is less |
| 156(2)(a) | Total income is chargeable to tax under section 202(1) and does not exceed twelve lakh rupees | 100% of the income-tax payable or ₹60,000, whichever is less |
| 156(2)(b) | Total income chargeable under section 202(1) exceeds twelve lakh rupees, and the income-tax payable on it exceeds the amount by which the total income is in excess of twelve lakh rupees | The amount by which the income-tax payable exceeds the amount by which the total income exceeds twelve lakh rupees |
Section 156(3): the deduction under sub-section (2) shall not exceed the income-tax payable as per the rates provided in section 202(1). On a total income of ₹12,00,000 the tax at the section 202(1) rates is ₹20,000 plus ₹40,000, that is ₹60,000, which equals the maximum rebate.
Surcharge and Cess
| Total income | Under section 202 | Under the Finance Act rates (option exercised) |
|---|---|---|
| Exceeds ₹50,00,000 but does not exceed ₹1,00,00,000 | 10% | 10% |
| Exceeds ₹1,00,00,000 but does not exceed ₹2,00,00,000 | 15% | 15% |
| Exceeds ₹2,00,00,000 but does not exceed ₹5,00,00,000 (excluding dividend income and capital gains under sections 196, 197 and 198) | 25% | 25% |
| Exceeds ₹5,00,00,000 (excluding dividend income and capital gains under sections 196, 197 and 198) | 25% | 37% |
| Exceeds ₹2,00,00,000 including such dividend income and capital gains, but not covered by the two rows above | 15% | 15% |
| Part of the income-tax that relates to dividend income or capital gains under sections 196, 197 and 198 | Not more than 15% | Not more than 15% |
Surcharge is a percentage of the income-tax. Health and Education Cess of 4% is then added on the income-tax and surcharge (section 3(15) of the Finance Act, 2026). Marginal relief: where total income exceeds ₹50,00,000, ₹1,00,00,000 or ₹2,00,00,000 (and ₹5,00,00,000 under the Finance Act rates), the income-tax and surcharge together shall not exceed the income-tax and surcharge on that limit plus the income above it (section 3(5) for section 202, and Paragraph F, Table 2 for the Finance Act rates).
Exercising the Option Under Section 202(4)
- A person not having income from business or profession exercises the option along with the return of income furnished under section 263(1) for the tax year.
- A person having income from business or profession exercises it on or before the due date specified under section 263(1) for furnishing the return for that tax year. Once exercised it applies to subsequent tax years.
- A person having income from business or profession may withdraw the option only once, for a tax year other than the one for which it was exercised, and after that can never exercise it again unless the person ceases to have income from business or profession.
- Maximum amount not chargeable to income-tax, for the agricultural income computation in section 3(2) of the Finance Act, 2026: ₹2,50,000 generally, ₹3,00,000 for a resident of sixty years or more but less than eighty years, ₹5,00,000 for a resident of eighty years or more, and ₹4,00,000 for an assessee chargeable under section 202.
Late Fee and Penalty
Where a person required to furnish a return under section 263 fails to do so by the due date, the fee is ₹1,000 if the total income does not exceed ₹5,00,000, and ₹5,000 in any other case. The same fee applies to a return under section 263(5) furnished beyond nine months from the end of the tax year. ITA 2025 · s. 428(a) and (b)
Where the return is furnished after the due date or not furnished, simple interest of 1% for every month is charged on the tax on the total income as reduced by tax paid, from the due date to the date the return is furnished. ITA 2025 · s. 423
Where advance tax is not paid, or is less than 90% of the assessed tax, simple interest of 1% for every month or part of a month runs from 1 April following the tax year on the shortfall. ITA 2025 · s. 424(1)
Shortfall against 15%, 45% and 75% of the tax due by 15 June, 15 September and 15 December carries interest of 3%; shortfall against the full amount by 15 March carries 1%. No interest arises for June if 12% was paid, or for September if 36% was paid. ITA 2025 · s. 425(1) and (2)
What You Pay in Common Cases
Resident, section 202(1), total income ₹12,50,000
Resident aged 62, option under section 202(4), total income ₹8,00,000
Non-resident, section 202(1), total income ₹10,00,000
Resident, section 202(1), total income ₹51,00,000 (marginal relief)
How to Apply and Pay
- 1Pick the ratesSection 202(1) applies unless you exercise the option under section 202(4): with the return, or by the due date if you have business income.
- 2Pay advance taxWhere the tax for the year is ₹10,000 or more (s. 404): 15% by 15 June, 45% by 15 September, 75% by 15 December, all by 15 March (s. 408).
- 3File the return by the due date31 July for most individuals; 31 August with unaudited business income; 31 October where accounts are audited; 30 November where section 172 applies (s. 263(1)(c)).
- 4Late is costlyFee of ₹1,000 or ₹5,000 (s. 428) and 1% a month interest (s. 423) once the due date is missed.
How to Use This Chart
- Section 202(1) is the default. The Finance Act rates apply only if the option under section 202(4) is exercised in time.
- The higher exemption limits of ₹3,00,000 and ₹5,00,000 for resident senior citizens exist only in the Finance Act rates. The section 202(1) Table has one set of slabs for every age.
- Apply the slab rates, then the section 156 rebate, then surcharge if total income exceeds ₹50,00,000, then 4% cess.
- The exemptions and deductions that are not available under section 202(1) are listed in section 202(2) by section and Schedule number. They are not named or explained here.
- Income taxed at special rates (for example capital gains under sections 196, 197 and 198, and winnings) is not covered by these slabs, and whether the section 156 rebate is available against such tax is not examined here.
- Rates for firms, companies, co-operative societies and local authorities (Paragraphs B to E of Part I-B) are not shown.
- The partial integration of agricultural income under section 3(2) of the Finance Act, 2026 is not worked out.
- Rates for the assessment year 2026-27 under the Income-tax Act, 1961 (Part I-A of the First Schedule) are a different period and are not shown.
- How total income is computed (deductions under each head of income and under Chapter VIII) is outside this chart.
- The calculator does not apply the lower surcharge cap for dividend and capital gains under sections 196, 197 and 198, and does not compute interest under sections 423 to 425.
- Relief for arrears of salary (section 157) and for tax paid outside India (sections 159 and 160) is not worked out.
Official documents behind this page
- Income-tax Act, 2025 (30 of 2025), as enacted, Gazette of India ExtraordinarySection 202(1), Table, Sl. No. 1 to 7; section 202(2) and 202(4); section 156(1), (2) and (3).
- Finance Act, 2026 (4 of 2026), Gazette of India Extraordinary, 30 March 2026Section 3(1) (rates for the tax year commencing on 1 April 2026), 3(2) (Table of maximum amount not chargeable), 3(4)(b) (Table, Sl. No. 10: surcharge for section 202), 3(5) (marginal relief) and 3(15) (cess); section 56 (amendment of section 202(2)(a)); First Schedule, Part I-B, Paragraph A items (I), (II) and (III) and Paragraph F, Table 1 Sl. No. 1 and Table 2; Part III, Paragraph A (same rates for salary TDS and advance tax).
- Income-tax Act, 2025 as amended by the Finance Act, 2026 (consolidated copy)Used as a second reading of the section 202(1) Table and section 156, and of the footnote recording the omission of section 202(2)(a)(iii) with effect from 1 April 2026. Also read for the steps and penalties: section 19(1) Table Sl. No. 2 (standard deduction); section 263(1)(c) Table (due dates, as substituted by the Finance Act, 2026); sections 404 and 408 (advance tax and its instalments); sections 423, 424 and 425 (interest); section 428(a) and (b) (fee, as substituted by the Finance Act, 2026).
Disclaimer: This chart reproduces fees and rates from the official documents listed above, as read on 2 October 2026. It is general information, not professional advice for your case. Fees, rates and slabs are changed by notification, and the amount the authority’s portal or challan asks for on the day you pay is the one that applies. The calculator only adds up the figures on this page; it does not know your facts or any later change. TaxClue is not responsible for a decision taken on this page alone. Check the current notification on the official website before you pay or file.