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Income Tax
Income tax is charged on an individual’s income from salary, business, investments and other sources, at rates that rise with income. India offers two systems, the new regime with lower rates and few deductions, and the old regime with higher rates and many deductions.
Why It Matters
From April 2026, income tax is governed by the Income Tax Act, 2025, replacing the 1961 law.
In India
Under the new regime, income up to ₹12 lakh is effectively tax-free for most individuals after the rebate, and salaried people get an additional standard deduction.