India Personal Income Tax
Detailed personal income tax rates and rules for India in 2026.
India's new tax regime (default from FY 2023-24) applies progressive rates from 0% to 30% on income above INR 15 lakh, with a standard deduction of INR 75,000 for salaried individuals. The old regime offers higher rates but allows numerous deductions under sections like 80C (up to INR 1.5 lakh), 80D (health insurance), and HRA exemptions. A surcharge of 10-37% applies on higher incomes, plus a 4% health and education cess, bringing the effective top rate to approximately 42.74% under the old regime. Under the new regime, the maximum surcharge is capped at 25%, resulting in a top effective rate of about 39%.
| Income Range (INR) | Tax Rate |
|---|---|
| ₹0 – ₹300K | 0% |
| ₹300K – ₹700K | 5% |
| ₹700K – ₹1.0M | 10% |
| ₹1.0M – ₹1.2M | 15% |
| ₹1.2M – ₹1.5M | 20% |
| ₹1.5M+ | 30% |
Filing Deadline
July 31 (non-audit cases); October 31 (audit cases)
Residency Rule
An individual is a resident if present in India for 182 days or more during the financial year, or 60 days or more in the current year and 365 days or more in the preceding four years. Resident and ordinarily resident (ROR) individuals are taxed on worldwide income. Resident but not ordinarily resident (RNOR) individuals are taxed on Indian-sourced income and income received in India. Non-residents are taxed only on Indian-sourced income.
Additional Notes
The new tax regime (Section 115BAC) is the default option from FY 2023-24 but taxpayers with business income can switch between regimes only once. Salaried individuals can choose each year. The old regime remains beneficial for those with significant deductions and exemptions. A rebate under Section 87A makes income up to INR 7 lakh effectively tax-free under the new regime.
How India Income Tax compares
India’s top personal income tax rate of 42.7% is the 30th highest of 203 countries TaxAtlas tracks, above the global average of 27.7% and Asia’s regional average of 22.2%.
