India tax basics for 2026-27
Self-employed people and SME owners getting their bearings before the detail: which regime, what the tax year means, and the core deadlines.
Indian income tax for tax year 2026-27 runs on two regimes. The new regime is now the default and makes income up to Rs 12 lakh tax-free (a Rs 4 lakh basic exemption, a Rs 60,000 rebate under Section 87A, and a Rs 75,000 standard deduction for salaried and pensioners), but it allows almost no deductions. The old regime keeps the full deduction stack (80C, 80D and the rest) against lower exemptions, so it only wins where your deductions are large. This hub covers the choices and deadlines everyone needs first, before the trade, GST and capital-gains detail elsewhere on the site. References are to the Income-tax Act 2025 (in force for tax year 2026-27) with the 1961 Act cross-referenced.
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Guidance, not advice. We explain the rules, we don't assess your situation. Always seek financial or tax advice from your accountant, or contact Income Tax Department. Read our editorial scope →
Guides in this hub
- Old vs new regime: which to choose →
How the two regimes compare and when each wins
- How the tax year works (2026-27) →
Tax year, due dates and the move away from assessment-year language
- Advance tax and 234A/B/C interest →
Who pays, the instalment dates, and how interest builds
- The updated return (ITR-U) →
Fixing a missed or under-reported return, and the additional-tax ladder
- PAN, Aadhaar and e-filing →
The identifiers and portal you file through
The Rs 12 lakh tax-free line
Under the new regime, income up to Rs 12 lakh attracts no tax once the Rs 60,000 rebate is applied (Rs 12.75 lakh for a salaried person after the Rs 75,000 standard deduction). Marginal relief applies just above Rs 12 lakh, so a small overshoot does not create a cliff. This single fact reshapes most old-vs-new decisions.
Deductions only matter in the old regime
80C, 80D, 80TTB, home-loan interest on a self-occupied house and most of Chapter VI-A apply only under the old regime. So the real question is whether your total deductions beat the new regime's higher exemption and Rs 60,000 rebate. For many self-employed people they do not, which is why the new regime is the default.
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