New individual tax regime introduces revised slab rates, capped surcharge rules and an option to retain the old regime.

Proposed amendments create a revised new tax regime for individuals, HUFs, AOPs, BOIs and artificial juridical persons, prescribing progressive slab rates to determine income-tax from assessment year 2026-27, while allowing taxpayers to opt instead for rates in Part III of the First Schedule. The Part III schedule contains separate slab structures for general residents and for senior and super-senior residents. Computed tax (including specified capital gains) is subject to a multi-tiered surcharge with caps on surcharge for dividend and certain capital gains incomes, special limits for associations of companies, and marginal relief at thresholds.

---

---

---