Every limit, rate and threshold in this document, in one place. All figures verified August 2026 and applicable to FY 2026-27 (Tax Year 2026-27) unless stated.
17.1 Income tax: new regime
Item
Value
Up to ₹4,00,000
Nil
₹4,00,001 – ₹8,00,000
5%
₹8,00,001 – ₹12,00,000
10%
₹12,00,001 – ₹16,00,000
15%
₹16,00,001 – ₹20,00,000
20%
₹20,00,001 – ₹24,00,000
25%
Above ₹24,00,000
30%
Standard deduction (salaried)
₹75,000
Rebate: Section 156 (formerly 87A)
Up to ₹60,000, for total income ≤ ₹12,00,000
Effective zero-tax salary
₹12,75,000
Marginal relief applies up to
~₹12,70,588 of total income
Health & education cess
4%
Maximum marginal rate
39.0%
17.2 Income tax: old regime
Item
Value
Up to ₹2,50,000
Nil
₹2,50,001 – ₹5,00,000
5%
₹5,00,001 – ₹10,00,000
20%
Above ₹10,00,000
30%
Standard deduction (salaried)
₹50,000
Rebate: Section 156 (formerly 87A)
₹12,500, for total income ≤ ₹5,00,000
Basic exemption: age 60–79
₹3,00,000
Basic exemption: age 80+
₹5,00,000
Cess
4%
Maximum marginal rate
42.744%
17.3 Surcharge: both regimes
Total income
Old
New
₹50 lakh – ₹1 crore
10%
10%
₹1 crore – ₹2 crore
15%
15%
₹2 crore – ₹5 crore
25%
25%
Above ₹5 crore
37%
25%
17.4 Deductions: old regime only, unless noted
Provision
New section
Old section
Limit
Life insurance, PF, PPF, ELSS, NSC, tuition, home loan principal, 5-yr tax-saver FD
123
80C
₹1,50,000
NPS: own contribution
124(1)
80CCD(1)
Within ₹1,50,000
NPS: own, additional
124(1B)
80CCD(1B)
₹50,000
NPS: employer contribution
124(2)
80CCD(2)
14% of Basic+DA (BOTH regimes)
Health insurance: self, spouse, children
126
80D
₹25,000 (₹50,000 if senior)
Health insurance: parents
126
80D
₹25,000 (₹50,000 if senior)
Preventive health check-up
126
80D
₹5,000, within the above
Education loan interest
129
80E
No cap, 8 years
Donations
133
80G
Varies
Rent paid, no HRA
134
80GG
Least of ₹5,000/mo, 25% of income, rent − 10% of income
Savings interest
153
80TTA
₹10,000
Deposit interest, 60+
153
80TTB
₹50,000
Home loan interest: self-occupied
22
24(b)
₹2,00,000
Home loan interest: let out
22
24(b)
No limit; loss set-off capped at ₹2,00,000 (BOTH regimes)
5.25% (unchanged at the August 2026 MPC; cut from 5.50% in Dec 2025)
Standing Deposit Facility
5.00%
MSF / Bank Rate
5.50%
RBI CPI inflation projection, FY 2026-27
5.0%
Savings account rates
2.5%–7.5%
Bank FD, 1 year
~6.25%–8.60%
Liquid fund, 1-year return
~6.25%–7.0%
DICGC deposit insurance
₹5,00,000 per depositor per bank (principal + interest)
TDS threshold: bank interest
₹50,000 (₹1,00,000 for seniors)
TDS threshold: NBFC interest
₹10,000
PPF
7.1%
PPF annual limit
₹500 – ₹1,50,000
PPF tenure
15 years, extendable in 5-year blocks
SSY
8.2%
SCSS
8.2%, maximum ₹30 lakh
NSC
7.7%, 5 years
KVP
7.5%, matures in 115 months
POMIS
7.4%
Post Office TD: 1/2/3/5 year
6.9% / 7.0% / 7.1% / 7.5%
Home loan rate
~7.25%–8.50%
Personal loan rate
~11%–20%
Credit card finance charge
2.5%–4.0%/month = 30%–48% APR
Credit card forex markup
~3.5%
17.10 Insurance
Item
Value
GST: individual life & health (from 22 Sep 2025)
0%
GST: group / employer-sponsored
18%
PED waiting period: IRDAI cap
36 months
Moratorium: claim cannot be contested for non-disclosure after
60 months
Cashless pre-authorisation decision
Within 1 hour
Discharge authorisation
Within 3 hours
Term cover benchmark
10–15× annual income
Section 45, Insurance Act 1938: life policy non-contestability
After 3 years
Section 126 (80D) maximum
₹1,00,000
17.11 Credit
Item
Value
Credit score range
300–900
Credit utilisation guidance
Below 30%
Free credit reports per year
One per bureau × 4 bureaus
RBI grace period before late fee / bureau reporting
3 days
Card closure timeline
7 working days; ₹500/day compensation for delay
Interest on unpaid fees and taxes
Prohibited
Credit card minimum due
Typically 5% of outstanding
Cash advance fee
2.5%–3%, minimum ₹300–₹500
17.12 Property
Item
Value
LTV: property up to ₹30 lakh
90%
LTV: ₹30–75 lakh
80%
LTV: above ₹75 lakh
75%
FOIR ceiling
Typically 50%–60%
Stamp duty
5%–7%, state-dependent
Registration
~1%
GST: under construction
5% (1% affordable)
GST: ready to move with OC
Nil
TDS on purchase above ₹50 lakh
1%
Section 54EC bonds cap
₹50,00,000, 5-year lock-in
Section 54 cap
₹10 crore
Standard deduction on rental income
30%
House property loss set-off cap
₹2,00,000/yr
Rental yields, Q2 2026
City
Gross yield
Hyderabad
5.5%
Pune
4.35%
Mumbai
4.15% (prime 2.5%–3.0%)
Bengaluru
3.6%
Delhi NCR
3.2%
National average
5.16%
17.13 Compliance calendar
Date
Item
15 June
Advance tax: 15%
31 July
ITR-1, ITR-2 due
31 August
ITR-3, ITR-4 due (changed for FY 2026-27)
15 September
Advance tax: 45% cumulative
31 October
Audit cases
15 December
Advance tax: 75% cumulative
15 March
Advance tax: 100%
31 March
Revised return deadline; last date for tax-saving investments
Form numbers from FY 2026-27
Old
New
Form 16
Form 130
Form 16A
Form 131
Form 12BB
Form 124
Form 26AS
Form 168
Form 15G / 15H
Form 121
17.14 Compounding reference
Multiple = (1 + r)ⁿ
Years
7.1%
8.25%
12%
5
1.41×
1.49×
1.76×
10
1.99×
2.21×
3.11×
15
2.80×
3.28×
5.47×
20
3.94×
4.88×
9.65×
30
7.81×
10.79×
29.96×
40
15.49×
23.83×
93.05×
Rule of 72 (years to double): 72 ÷ rate. At 7.1% → 10.1 yrs. At 8.25% → 8.7 yrs. At 12% → 6.0 yrs. At 42% → 1.7 yrs.
₹20,000/month SIP for 20 years: ₹48 lakh contributed → ~₹2.00 crore at 12%; ~₹1.22 crore at 8.25%.
17.15 Still moving: verify before relying
Item
Status, August 2026
EPF wage ceiling
₹15,000 since 2014. Supreme Court directed a decision within four months in January 2026; reporting indicates Finance Ministry clearance for ₹25,000, likely effective around 1 April 2027. Not notified.
EPS-95 higher pension
Following the Supreme Court judgment of 4 November 2022, implementation continues to be litigated and administratively revised. Verify your own case against current EPFO circulars.
NPS 80% lump sum
PFRDA permits 80% from 16 Dec 2025; the income-tax exemption still covers 60%. Unreconciled.
HRA 50% city expansion
Reported as effected by the Income-tax Rules, 2026 from FY 2026-27, adding Bengaluru, Hyderabad, Pune and Ahmedabad. Some references still list only four metros. Confirm with payroll before claiming.
EPF interest rate, FY 2026-27
Not declared. Typically announced February–May of the following year.
Labour Codes state rules
Central rules in force; state rules continue to be notified, and employer implementation timelines vary.
17.16 Glossary
Term
Meaning
AMC
Asset Management Company: runs mutual fund schemes
AMFI
Association of Mutual Funds in India: industry body
APR / APY
Annual Percentage Rate (simple) / Annual Percentage Yield (compound). In §8, APY instead means Atal Pension Yojana
CAGR
Compound Annual Growth Rate
CIBIL
TransUnion CIBIL: the most widely referenced Indian credit bureau
CTC
Cost To Company: total annual employment cost, not your salary
This document provides information and frameworks for education and further research. It is not financial advice, and it is not advice on any specific financial decision. Indian tax and pension rules change at least annually, and FY 2026-27 is the first year under an entirely new tax statute. Verify every figure against the current law and, where a decision is material, against a qualified professional, before acting on it.
Conceptual framing, topic ordering and several analytical devices derive from CS 007: Personal Finance for Engineers by Adam Nash & Stanford University, published for non-commercial use at cs007.blog.
