Starting April 1, 2026, salaried employees in India could see a slight boost in their monthly take-home pay.
This comes with the rollout of the new Income-tax Act, 2025, which replaces the old Income-tax Act of 1961.
One of the main reasons for higher in-hand salary is the standard deduction.
Currently, salaried individuals can claim ₹75,000 as a standard deduction, which directly reduces taxable income and increases disposable income.
Tax Benefits Under the New Regime
The new tax system also continues to offer relief through Section 87A rebate.
Taxpayers earning up to ₹12 lakh per year could effectively pay zero income tax.
When combined with the standard deduction, salaried individuals may enjoy tax-free income of about ₹12.75 lakh.
Although the income-tax slabs remain the same for FY 2026-27, the new law aims to simplify compliance while keeping popular deductions and rebates intact.
What This Means for Your Salary
For salaried workers, this could mean a slight increase in monthly take-home pay, depending on your income level and the tax regime you choose.
The new system is designed to be simpler and continue offering benefits, making it easier for employees to manage taxes without losing out on reliefs.
