Fintech & Regulations•June 17, 2026

CBDT Notifies Revised New Tax Regime Withholding Tables for FY 2026-27

The Central Board of Direct Taxes (CBDT) has published updated TDS withholding rules under the New Tax Regime (Section 115BAC), clarifying standard deduction limits for salaried professionals.

Official Press Release
India TaxIncome TaxTDSFinancePayroll

The Central Board of Direct Taxes (CBDT) has issued an official notification establishing revised Tax Deducted at Source (TDS) schedules for salaried individuals under the default New Tax Regime for Assessment Year 2027-28.

The updated rules clarify standard deduction allowances of ₹75,000 for salaried employees and mandate employer payroll software to automatically apply progressive tax brackets without requiring manual employee declarations unless the Old Tax Regime is explicitly selected.

Salaried employees can calculate their exact monthly take-home pay using the Salary / Take-Home Pay Calculator.

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