Your salary, worked out line by line.

What changed for 2026-27

A new income-tax law and new labour codes landed within five months of each other. What it means for a salaried person, in four lines.

1 April 2026

The Income-tax Act, 2025 replaces the 1961 Act. “Tax year” replaces assessment year, and section numbers change: 80C deductions now sit under section 123, salary TDS under section 392. How TDS on salary works

Tax year 2026-27

Slabs are unchanged. With the ₹75,000 standard deduction and the section 156 rebate, a salary of up to ₹12.75 lakh pays no tax in the new regime. Check your tax

21 November 2025

The labour codes took effect. Allowances above 50% of total pay now count as wages for PF and gratuity, which raises both for many employees. See the effect of a higher basic

Form 16

Your employer’s TDS certificate becomes Form 130 from tax year 2026-27. Reading your TDS certificate