Question 1

What is an annual fee on a credit card?

Accepted Answer

An annual fee is the charge your bank levies every year for holding the credit card, billed to your statement. In India it ranges from zero on lifetime-free cards to ₹60,000 on super-premium cards. Many issuers waive the renewal fee when you cross a yearly spend threshold, so always check the waiver limit before treating the fee as unavoidable.

Question 2

How do annual fee waivers work?

Accepted Answer

An annual fee waiver means the bank credits back your renewal fee once you spend a set amount in the previous membership year. Common patterns are 'waiver on ₹2 lakh annual spend' or '₹5,000 fee waived on ₹1 lakh spends'. The waiver is usually applied automatically within one or two billing cycles; if it is missing from your statement, raise a dispute with customer care.

Question 3

What is the difference between a joining fee and an annual fee?

Accepted Answer

A joining fee is a one-time charge levied when the card is issued, while an annual fee recurs every membership year. On many Indian cards the joining fee is waived for the first year and the annual fee starts from year two. Lifetime-free cards charge neither. The two amounts can also be waived on condition of meeting a minimum spend, so compare the full-year cost, not just the headline number.

Question 4

How do credit card reward points work?

Accepted Answer

Credit card reward points are loyalty units you earn per ₹100 spent. Redemption value varies: cashback redemption is often ₹0.20–₹0.30 per point, while transferring points to airline or hotel partners can reach ₹0.50–₹1.00 per point. Most programs set the value in their terms, and points typically expire two to three years after they are earned, so check your expiry dates in the issuer app.

Question 5

What is foreign transaction markup?

Accepted Answer

Foreign transaction markup, also called forex markup, is a fee banks add to international purchases, typically 1% to 3.5% of the transaction value plus the currency conversion cost. Some Indian cards charge zero markup, and RuPay cards abroad through Discover and JCB partnerships are often cheaper. Markup applies to online international spends too, not just physical swipes.

Question 6

How does credit card lounge access work in India?

Accepted Answer

Lounge access is a benefit where your card grants free entry to airport lounges, either through brand programs like Priority Pass or Dragon Pass or the issuer's own lounges. Cards list a fixed number of complimentary visits per year, usually four to eight domestic, and you show your card at the desk. Access applies to the primary and sometimes supplementary cardholders; guests are charged per visit.

Question 7

What income do I need for a credit card?

Accepted Answer

Minimum income requirements vary by card segment. Entry-level and student cards in India often need ₹15,000–₹25,000 monthly income, mid-tier cards around ₹30,000–₹50,000, and premium cards ₹1 lakh or more per month. Banks also weigh your CIBIL score and existing debt. If you cannot meet an income bar, a secured card against a fixed deposit is the standard alternative.

Question 8

How do I apply for a credit card online?

Accepted Answer

To apply for a credit card online, open the issuer's website or app, choose a card you qualify for, fill in personal, employment, and income details, and complete eKYC with Aadhaar OTP or video KYC. Keep PAN, Aadhaar, and recent salary slips or bank statements handy. Approval takes minutes for pre-qualified profiles and up to ten working days otherwise, after which the card is dispatched by post or courier.

Question 9

How long does credit card approval take?

Accepted Answer

Credit card approval in India takes anywhere from instant to ten working days. Instant approvals happen when the bank pre-screens you through existing relationships or PAN-based data, with video KYC completing the same hour. Fresh applications need document verification and a bureau check, typically three to seven working days. Physical card dispatch adds two to five more days; virtual card numbers often work immediately.

Question 10

What is a good CIBIL score for getting a card?

Accepted Answer

A good CIBIL score starts at 750 out of a 300–900 range. Above 750, most banks approve standard cards and premium cards become realistic. Between 700 and 750, approval odds are decent for entry and mid-tier products. Below 700, expect rejections or require a secured card. Scores are driven by on-time payments, low credit utilization under 30%, and a healthy mix of active accounts.

Question 11

Is credit card usage free of interest?

Accepted Answer

Credit card usage is interest-free only if you pay the full statement amount by the due date each cycle, which gives a grace period of roughly 20 to 50 days. Carrying a balance triggers revolving interest at 3% to 4% per month, about 36% to 48% per year, charged from the transaction date on most Indian banks. The minimum-due option is never interest-free.

Question 12

Why should I not just pay the minimum due?

Accepted Answer

Paying only the minimum due keeps your account current but leaves 90% to 95% of the bill rotating as high-cost debt. The bank charges revolving interest at 3% to 4% monthly from the date of each purchase, and interest itself attracts interest. Minimum due is useful only as an emergency move to avoid late fees and bureau reporting, not as a payment strategy.

Question 13

Should I take cash out with my credit card at an ATM?

Accepted Answer

A credit card cash advance should be avoided: the bank levies a cash advance fee of 2.5% to 3.5% of the withdrawn amount and starts charging revolving interest from day one, with no grace period. There is also usually no reward on these transactions. The only lower-cost emergency option is your debit card, and a regular ATM withdrawal from your own account.

Question 14

Should I buy on credit card EMI or use a personal loan?

Accepted Answer

For a large purchase, compare total cost: no-cost EMI is rarely actually free because the interest is baked into a higher product price or lost discount, while personal-loan interest runs 10% to 24% per year. Credit card EMI rates are often 12% to 15% per year plus conversion fees. If the merchant genuinely offers zero percent and you can pay the full bill, EMI beats a loan.

Question 15

Does closing a credit card hurt my score?

Accepted Answer

Closing a credit card can hurt your score because it shortens your average credit history and removes part of your total available credit, which raises your utilization ratio. If the card is annual-fee-free, keeping it dormant is usually better than closing it. Close only when a high fee cannot be waived and you have other cards to maintain history, and redeem any points before closure.

Question 16

How many credit cards should I have?

Accepted Answer

There is no fixed ideal number, but three to five cards suit most Indian spenders: one lifetime-free cashback card for everyday bills, one rewards card matching your biggest spend category, and one travel or fuel card. Each application adds a bureau hard inquiry, so apply spaced out, not together. More cards only help if you can track due dates and keep utilization low.

Question 17

Do credit card reward points expire?

Accepted Answer

Yes, most reward points expire. Typical validity is two to three years from earning, though the exact rule differs per program. Banks notify expiry in the monthly statement and issuer app. Before expiry, redeem points for the highest-value option — often an airline or hotel transfer. Some programs allow partial retention by paying a small reactivation fee. Points earned from cash advances or fees never accumulate.

Question 18

Why is GST charged on annual fees and other card charges?

Accepted Answer

GST is a government tax on services in India, and a credit card is a financial service, so banks must levy 18% GST on the annual fee, late payment fee, over-limit fee, interest charges, and forex markup. It appears as a separate line on the statement. GST applies whether or not the fee is waived, and businesses with a GSTIN can often claim it back as input credit.

Question 19

How does a fuel surcharge waiver work?

Accepted Answer

Indian petrol pumps add a 1% GST surcharge on fuel purchases, and many fuel cards waive or rebate this amount when you pay with the card. The waiver is usually capped per month, commonly ₹100 to ₹250, and may apply automatically or as statement credit. Some cards require fuel spends through specific networks or pumps, so read the terms and watch the cap, not just the headline percentage.

Question 20

Are tap-to-pay and card-linked UPI safe?

Accepted Answer

Contactless payments are considered safe because each tap generates a one-time cryptogram instead of exposing your card number, and small purchases under ₹500 generally skip PIN entry. Bank liability rules protect you from unauthorized transactions reported promptly. Keep a per-transaction contactless limit, enable transaction alerts, and if a tap is ever disputed, raise it in the app quickly while keeping the physical card evidence.

Question 21

What should I do if my credit card is lost or stolen?

Accepted Answer

If your card is lost, freeze it instantly in the issuer app or call customer care, then file a written complaint noting the time. You are only liable for fraudulent charges until you report it, provided you report without undue delay. Banks issue a replacement with a new number and the credit limit usually carries over, though you must update auto-debit mandates with the new card.

Question 22

How can I increase my credit card limit?

Accepted Answer

Request a credit limit increase after three to six months of clean use: pay on time, keep utilization under 30%, and raise a request in the issuer app or by phone. A higher income with updated salary proof speeds up approval, and a strong score helps. Banks rarely exceed three to four times monthly income. A decline does not hurt your bureau record.

Question 23

Should I choose RuPay, Visa, or Mastercard?

Accepted Answer

RuPay is an Indian network with wider domestic acceptance, no forex markup on some cards, and UPI linkage, but weaker international acceptance. Visa and Mastercard have the broadest global reach and better partner perks. Choose a card by its fee-to-rewards value first; the network only matters for where you travel. Holding one RuPay plus one Visa or Mastercard covers every scenario.

Question 24

Are lifetime-free credit cards actually free?

Accepted Answer

A lifetime-free card has no joining and no annual fee for as long as the account stays open, so it is genuinely cheaper than paid cards of similar tier. The trade-off is usually lower reward rates and fewer benefits like lounge access. Watch for charges that still apply: interest on carried balances, late payment fee, forex markup, and cash advance fee. For first cards, lifetime-free is the standard safe choice.

Question 25

Is the new tax regime the default, or do I have to choose?

Accepted Answer

The new tax regime is the default for every taxpayer from FY 2026-27 onwards, under section 202 of the Income Tax Act 2025. To stay in the old regime you must actively opt out when filing. Most salaried employees with simple income benefit from the new regime's higher standard deduction and lower slabs.

Question 26

What is the last date to file Income Tax Return for FY 2025-26?

Accepted Answer

For financial year 2025-26 (assessment year 2026-27), the due date to file an Income Tax Return without late filing penalty is 31 July 2026 for most individuals not requiring audit. Businesses and professionals who need audit must file by 31 October 2026. Filing after the deadline attracts a penalty of up to ₹5,000 under section 234F of the Income Tax Act 2025. Always verify the exact deadline from the Income Tax Department's official portal before filing, as dates can shift.

Question 27

What are the new income tax slabs under the Income Tax Act 2025?

Accepted Answer

The new tax regime under section 202 of the Income Tax Act 2025 has six slabs. Income up to ₹4 lakh is fully exempt. Income from ₹4–8 lakh is taxed at 5%, ₹8–12 lakh at 10%, ₹12–16 lakh at 15%, ₹16–20 lakh at 20%, ₹20–24 lakh at 25%, and above ₹24 lakh at 30%. Rebate under section 87A gives zero tax for taxable income up to ₹4 lakh. These slabs apply from FY 2026-27 onwards.

Question 28

What is advance tax, and who must pay it in FY 2026-27?

Accepted Answer

Advance tax is your estimated annual tax liability paid in quarterly instalments during the financial year, rather than in a lump sum when filing. Under section 210 of the Income Tax Act 2025, you must pay advance tax if your estimated tax after TDS and deductions exceeds ₹10,000 for the year. For FY 2026-27 the four instalment dates are 15 June, 15 September, 15 December, and 15 March. Short-payment attracts interest at 1% per month under section 234C. Use the Advance Tax Calculator on FinWiz24 to estimate your quarterly liability.

Question 29

What is Form 16 and why does it matter?

Accepted Answer

Form 16 is a TDS certificate your employer issues showing tax deducted from your salary and deposited with the government. Part A shows your personal details, PAN, employer TAN, and quarterly TDS amounts; Part B breaks down your salary, exemptions, deductions under 80C to 80U, and taxable salary. You need Form 16 to file your ITR — it is your proof of income and tax paid. If you change jobs, ask each employer for their Form 16.

Question 30

Which ITR form should I use — ITR-1, ITR-2, or ITR-4?

Accepted Answer

ITR-1 (Sahaj) is for individuals with salary income, one house property, and agricultural income up to ₹5,000. ITR-2 covers those with capital gains, foreign income, or multiple house properties. ITR-4 (Sugam) is for residents with business or profession income on a presumptive basis. Most salaried employees use ITR-1. Using the wrong ITR form triggers a defective return notice under section 139(9) of the Income Tax Act 2025. The Income Tax portal auto-selects the correct form from your pre-filled data.

Question 31

Is the new income tax regime the default, and can I switch?

Accepted Answer

Yes. The new tax regime under section 202 of the Income Tax Act 2025 is the default for every taxpayer from FY 2026-27 onwards. Individuals and HUFs without business or professional income can opt out by filing Form 10R before the ITR due date, choosing the old regime with its higher basic exemption (₹3 lakh) and deduction-heavy structure. Once you opt out, you cannot revert to the new regime in a later year unless your income source changes.

Question 32

What are the current GST rates in India?

Accepted Answer

GST in India has four rates after the 56th GST Council restructured the slab system. Zero rate (0%) covers essentials like fresh food and healthcare. The 5% slab covers packaged food, transport, and small restaurants. The 18% slab covers most manufactured goods, services, and professional work. The 40% slab covers luxury and sin goods like tobacco, aerated drinks, and high-end automobiles. The old 12% and 28% rates are abolished. Verify current rates from CBIC before filing.

Question 33

How is TDS deducted on salary, and what is the threshold?

Accepted Answer

TDS on salary is deducted by your employer under section 192 of the Income Tax Act 2025. Your employer estimates your annual taxable income, applies the slab rates after deductions, and deducts tax in equal monthly instalments. No TDS applies if estimated annual salary is below the taxable threshold. Your employer also factors in declared investments under 80C to 80U. At year-end you receive Form 16A as proof of TDS deposited, which you claim as credit when filing your ITR.

Question 34

What health insurance costs does Section 80D cover?

Accepted Answer

Section 80D of the Income Tax Act 2025 allows a deduction for health insurance premiums paid for yourself, your spouse, children, and parents. The limit is ₹25,000 per year for individuals below 60 (₹50,000 for senior citizens). An additional ₹25,000 is available for parents (₹50,000 if senior citizens), making the maximum family claim ₹1 lakh per year when both you and your parents are senior citizens. Preventive health check-up costs up to ₹5,000 are included within the overall limit. The deduction is available only for policies where you are the proposer — policies on parents' lives must have you paying the premium.

Question 35

How does Section 80CCD(1B) give an extra NPS tax benefit?

Accepted Answer

Section 80CCD(1B) of the Income Tax Act 2025 gives a separate deduction of up to ₹50,000 per year for contributions to the National Pension System (NPS), on top of the ₹1.5 lakh ceiling under Section 80C. Your employer's NPS contribution — up to 10% of salary (14% for central government employees) — also qualifies under Section 80CCD(1), separate from both limits. This means a salaried person contributing to NPS can claim up to ₹1.5 lakh under 80C plus ₹50,000 under 80CCD(1B), plus the employer's contribution under 80CCD(1). Tier-I accounts are required to claim this deduction; Tier-II accounts do not qualify.

Question 36

Who gets Rebate 87A and how much tax does it save?

Accepted Answer

Rebate 87A under section 87A of the Income Tax Act 2025 gives a full tax rebate. You pay literally zero tax when your total taxable income after all deductions is up to ₹4 lakh in a year. This means a gross salary of ₹7 lakh after the standard deduction of ₹75,000 and Rebate 87A results in zero tax under the new regime. The Rebate is available only to resident individuals and HUFs. It is only under the new regime. It does not apply if you use the old regime. The rebate is claimed automatically when you file your ITR. No separate form is needed.

Question 37

How is income from house property taxed?

Accepted Answer

Income from house property is taxed under section 22 of the Income Tax Act 2025. The yearly value is the higher of actual rent received or fair rent, minus municipal taxes paid. From this you deduct 20% under Section 24(a) for repairs. This deduction applies even if you spent nothing on repairs. If you have a home loan, Section 24(b) lets you deduct the actual interest paid. This can create or increase a loss from house property. You can set off up to ₹2 lakh of that loss against other income under the old regime. Self-occupied property with no rent usually shows a nil or negative value.

Question 38

How are capital gains from equity taxed?

Accepted Answer

Long-term capital gains (LTCG) from equity shares or equity-oriented mutual funds held over one year are taxed under section 112A of the Income Tax Act 2025. Gains up to ₹1.25 lakh per year are exempt. Gains above that are taxed at 12.5% with cost inflation indexation. Short-term capital gains (STCG) from equity sold within one year are taxed at 20% under section 111A. They do not get the indexation benefit. Both rates apply to transactions on recognised Indian stock exchanges. Debt mutual funds do not get these rates. Their gains are taxed as ordinary income regardless of how long they are held.

Question 39

When must a business register for GST?

Accepted Answer

A business must register for GST if its annual aggregate turnover exceeds ₹40 lakh in a financial year (₹20 lakh for businesses in Arunachal Pradesh, Assam, Himachal Pradesh, Jammu & Kashmir, Ladakh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, and Uttarakhand). Restaurants (non-AC, non-alcohol) with turnover up to ₹1.5 crore can opt for the Composition Scheme instead of regular registration. Voluntary registration is available to any business below the threshold. Once registered, you must file returns every month (or quarter under QRMP) regardless of actual sales. Registration is on the GST portal at gst.gov.in.

Question 40

How does input tax credit (ITC) work under GST?

Accepted Answer

ITC lets a registered person cut their output tax. They claim the GST paid on business buys. Three things must be true. You got the goods or services. You recorded them in your books. And you paid the supplier. Some buys are excluded. ITC cannot be claimed on goods or services for personal use. Motor vehicles are excluded. Club memberships and wellness centres are also excluded. Unused ITC expires after five years. From October 2025, cinema tickets and motor vehicles for personal use were also restricted.

Question 41

What is the GST Composition Scheme and who can use it?

Accepted Answer

The GST Composition Scheme under section 10 of the CGST Act lets small businesses pay tax at a fixed rate on their turnover. They file CMP-02 to opt in. The scheme is open to businesses with yearly turnover up to ₹3 crore. For restaurants, the limit is ₹1.5 crore. The tax rates are 3% CGST plus SGST. For restaurants, it is 1%. For goods traders on IGST, it is 5%. Some trade limits apply. You cannot supply interstate. You cannot sell through e-commerce operators. You cannot claim input tax credit on purchases. You must file GSTR-4 quarterly and a simplified yearly return. This scheme suits businesses with few purchases and low margins.

Question 42

What is GSTR-1 and when must it be filed?

Accepted Answer

GSTR-1 is the monthly or quarterly return that records all outward supplies (sales) by a registered GST taxpayer. If your yearly turnover is above ₹5 crore, you must file monthly by the 11th of the next month. If your turnover is below ₹5 crore and you have not opted for the Composition Scheme, you can file quarterly under the QRMP scheme. The due date is the 13th of the month after the quarter ends. GSTR-1 reports your sales invoices, credit notes, debit notes, and exports. Filing GSTR-1 is mandatory even for months with zero sales. Nil returns are required. Failing to file on time draws a late fee of ₹50 per day. For nil returns it is ₹20 per day. The maximum fee is ₹10,000.

Question 43

What is the GST reverse charge mechanism?

Accepted Answer

The GST reverse charge mechanism (RCM) puts the job of paying GST on the buyer, not the seller. Under section 9(3) of the CGST Act, RCM applies to some supplies from unregistered persons to registered persons. It also applies to goods like brass scrap and rail transport. It covers the categories listed in the RCM notice. The buyer must raise a self-invoice. They calculate GST at the right rate. They pay it to the government by the 10th of the next month. The buyer then claims this as ITC in their return, subject to normal ITC limits. Failing to comply with RCM draws the same penalties as not paying regular GST.

Question 44

When is TDS deducted on bank interest income?

Accepted Answer

Under section 194A of the Income Tax Act 2025, banks and post offices deduct TDS at 10% on interest paid or credited to your account. This applies when total yearly interest exceeds ₹10,000. The bank deducts at the time of credit, not payment. If your estimated yearly income is below the taxable limit, you can submit Form 15G (for individuals under 60) or Form 15H (for senior citizens aged 60 or above) to stop TDS entirely. If you do not give your PAN, TDS is deducted at 20%. The bank issues a TDS certificate (Form 16A) for the interest credited. Use this to claim credit when you file your ITR.

Question 45

How is TDS deducted on payments to contractors?

Accepted Answer

Under section 194C of the Income Tax Act 2025, the payer deducts TDS on contract work. A contractor is any person who supplies goods or services under a contract. The payer deducts 1% if the contractor gives a PAN. The rate is 2% if no PAN is given. TDS applies when a single payment is over ₹30,000 or yearly total is over ₹1 lakh. TDS is deducted at the time of credit or payment, whichever comes first. The contractor claims the TDS as credit in their ITR. No TDS is deducted if total yearly pay is below the threshold.

Question 46

How is TDS deducted on professional and technical service fees?

Accepted Answer

TDS applies to fees paid to lawyers, doctors, engineers, and other pros under Section 194J. Payer cuts 10% if you give PAN. Cuts 20% if no PAN. Applies to payments over ₹30,000 a year. Directors get 20% under Section 194Q. TDS cuts when money lands or pays, whichever is first. Claim it in your ITR. No TDS if annual fee is under ₹30,000.

Question 47

What is the standard deduction for salaried employees?

Accepted Answer

The standard deduction under section 16(ia) of the Income Tax Act 2025 lowers your gross salary before tax. It is a flat amount for all salaried employees. For FY 2026-27 it is ₹75,000. It was ₹50,000 in FY 2023-24. The deduction applies automatically. You do not need to submit rent receipts or investment proofs. Both the new and old tax regimes allow it. Transport allowance of ₹3,200 per month and medical reimbursement of ₹15,000 per year are now part of the standard deduction. You cannot claim these separately. If you leave your job mid-year, the deduction is prorated to the months you worked.

Question 48

How is capital gains tax on property sale calculated?

Accepted Answer

Selling land or a building creates capital gains. Section 48 of the Income Tax Act 2025 covers this tax. The gain is the sale price minus what you paid, adjusted for inflation using CII from CBDT. You also subtract major repairs. Long-term gains held over 24 months are taxed at 20% with indexation. You can opt for 12.5% without indexation instead. If you sell and reinvest the full gain in one residential house within two years, section 54 gives full exemption, up to ₹10 crore. Losses from property can be set off against other capital gains but not against ordinary income.

Question 49

Which ITR form should an individual use?

Accepted Answer

The Income Tax Department has four ITR forms for individuals. ITR-1 (Sahaj) is for salaried people with salary of ₹75 lakh or less, plus income from one house property. ITR-2 is for capital gains or foreign income, including shares, mutual funds, or property sales. ITR-3 is for business or professional income, including freelancers and self-employed people. ITR-4 (Sugam) is for business owners on the presumptive scheme with turnover of ₹3 crore or less. If you earn any capital gains — even ₹0 after exemptions — you must use ITR-2. File at incometax.gov.in.

Question 50

What goods and services are exempt from GST?

Accepted Answer

Zero-rated supply means no GST is charged on a good or service. The seller cannot charge GST but can still claim credit on their inputs. Exempt items include: fresh food like milk, eggs, fruits, vegetables, and grains; education services; healthcare services; agricultural produce in its natural form; public transport; and government services. The 56th GST Council meeting in September 2025 removed the old 12% and 28% rates. Items now fall under 0%, 5%, 18%, or 40%. To check a specific item rate, use the GST rate finder at cbic.gov.in or the GST portal. Exempt supplies are not entered in GSTR-1 outward supply tables. You must still report them as nil-rated entries.

Question 51

What are TDS certificates and how do I use them?

Accepted Answer

Your bank gives you a TDS certificate for interest. Your employer gives you one for salary. Your client gives you one for contract fees. Form 16 has salary TDS. Form 16A has other TDS. Both are on the TRACES portal at tdscpc.gov.in. They appear within 15 days of the quarterly reconciliation date. Check the certificate for errors in your name, PAN, or amount. Wrong details make the tax show wrong in your Form 26AS and AIS. When you file your ITR, match the TDS in your return against Form 26AS on the income tax portal. If more TDS was cut than your actual tax, claim the excess as a refund.

Question 52

What is Form 26AS and how does it help in ITR filing?

Accepted Answer

Form 26AS is your yearly tax statement on the income tax portal. It shows every TDS, TCS, and advance tax paid from your PAN. When you file your ITR, the system checks your TDS credits against Form 26AS. Any TDS in Form 26AS that you do not claim is ignored. Any TDS you claim that is not in Form 26AS triggers a notice. AIS (Annual Information Statement) is a wider version. It also shows high-value money moves. This includes bank deposits over ₹10 lakh, card spends over ₹1 lakh, and money sent abroad. Download both from the income tax portal before you file. This makes sure every TDS and tax payment is accounted for.

Question 53

What is GSTR-3B and when must a GST taxpayer file it?

Accepted Answer

GSTR-3B is the monthly summary return that every registered GST taxpayer must file. It reports your sales, input tax credit claimed, tax liability, and tax paid. Most taxpayers must file by the 20th of the following month. Some special category states get until the 22nd. The GST Council deadline extensions only apply to QRMP filers. You must declare your total sales, GST collected, ITC claimed, and any reverse charge liability in the return. You must pay the full tax liability even if you have not yet received ITC from your supplier. Late filing draws a late fee of ₹50 per day (₹20 for nil returns). Interest at 18% per year also applies on any unpaid tax.

Question 54

What are the income tax slabs for FY 2026-27?

Accepted Answer

The income tax slabs for FY 2026-27 under the new regime (section 202 of the Income Tax Act 2025) are: no tax on income up to ₹4 lakh. The rate is 5% from ₹4 lakh to ₹8 lakh. It is 10% from ₹8 lakh to ₹12 lakh. It is 15% from ₹12 lakh to ₹16 lakh. It is 20% from ₹16 lakh to ₹20 lakh. It is 25% from ₹20 lakh to ₹24 lakh. And it is 30% on income above ₹24 lakh. These slabs apply to all individual taxpayers under the new regime. This includes salaried people, pensioners, and self-employed people. Rebate 87A gives zero tax for taxable income up to ₹4 lakh. The old regime slabs and exemptions are still available as an option for those with business income. Use FinWiz24's Income Tax Calculator to find your exact tax.

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