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2014 → FY 2026-27

Thirteen years of slab changes, in one timeline

Every major change to salaried income tax since 2014 — the old regime's deduction era, the new regime's arrival, and the rebate that now zeroes out tax up to ₹12 lakh.

  1. 2014Old regime

    The ₹2.5 lakh reset

    • Basic exemption for under-60 individuals rose from ₹2 lakh to ₹2.5 lakh; senior citizens moved to ₹3 lakh.
    • 80C limit raised to ₹1.5 lakh; self-occupied home-loan interest cap set at ₹2 lakh.
    • The old regime was the only regime — "tax planning" meant investments, insurance and rent receipts.
  2. 2017Old regime

    The 5% slab

    • The 2.5–5 lakh slab rate halved from 10% to 5% — the biggest relief slice for small incomes.
    • A 10% surcharge arrived for incomes above ₹50 lakh.
  3. 2018Old regime

    Standard deduction returns, cess rises

    • Standard deduction came back for salaried people at ₹40,000, replacing transport and medical allowances.
    • Health and education cess rose from 3% to 4%.
  4. 2019Old regime

    Tax-free up to ₹5 lakh

    • Section 87A rebate made income up to ₹5 lakh effectively tax-free for residents.
    • Standard deduction increased from ₹40,000 to ₹50,000 — a figure that stuck for years.
  5. 2020New regime

    A second regime appears

    • Section 115BAC introduced the optional new regime: lower rates, wider slabs, but almost no deductions.
    • No standard deduction, no 80C, no HRA, no LTA — the trade-off was simplicity for exemptions.
    • Seven slab bands from 0% to 30% started almost immediately at ₹2.5 lakh.
  6. 2023New regime

    Default switch and ₹7 lakh rebate

    • The new regime became the default; the old one remained available on request.
    • 87A rebate limit under the new regime rose to ₹7 lakh taxable income.
    • Slabs restructured to start at ₹3 lakh; new-regime surcharge capped at 25%.
  7. 2024New regime

    The ₹12 lakh milestone

    • July 2024: standard deduction rose from ₹50,000 to ₹75,000 under the new regime.
    • Slabs widened again — 5% up to ₹7 lakh, 10% to ₹10 lakh, 15% to ₹12 lakh.
    • 87A rebate extended to ₹12 lakh taxable income — more than doubling the tax-free ceiling in one budget.
    • Marginal relief ensured a raise just past ₹12 lakh could never cost more than the raise itself.
  8. 2025New regime

    Slabs re-cut around ₹12 lakh

    • First slab grew to ₹4 lakh nil, pushing the 5% band to ₹4–8 lakh and 10% to ₹8–12 lakh.
    • The ₹12 lakh rebate and ₹75,000 standard deduction carried forward unchanged.
  9. 2026Both

    Where things stand in FY 2026-27

    • Budget 2026 kept the new-regime slabs, ₹12 lakh rebate and ₹75,000 standard deduction intact.
    • The old regime remains opt-in with ₹2.5 lakh exemption, ₹50,000 standard deduction and full deductions.
    • The HRA metro list expands to 8 cities from 1 April 2026, raising the 50%-of-basic cap for more taxpayers.

What it means for your salary today

Thirteen years ago a ₹10 lakh CTC was a serious tax bill with a paperwork habit to match. Today the same salary owes zero income tax under the new regime before a single investment proof is filed. The old regime still wins for people with heavy deductions — but the bar it must clear keeps rising.

See both regimes on your CTC

Need the current numbers, not the story? Jump to the FY 2026-27 slab tables.