Under the rates of income-tax in force for the tax year 2026-27 under the Income-tax Act, 2025,…

The rates of income-tax and surcharge for the tax year 2026-27 under the Income-tax Act, 2025 are laid down by section 3 of, and the First Schedule to, the Finance Act, 2026. Surcharge on an individual's income-tax at the slab rates is levied at 10% where the total income exceeds ₹ 50 lakh but does not exceed ₹ 1 crore, and at 15% where it exceeds ₹ 1 crore but does not exceed ₹ 2 crore. Above ₹ 2 crore the rate is 25%, and above ₹ 5 crore it is 37%; under the new tax regime in section 202 the rate does not exceed 25%. The surcharge on tax on dividends and capital gains under sections 196 to 198 does not exceed 15%. Where the total income is ₹ 50 lakh or less, no surcharge is payable on this income-tax, though health and education cess at 4% remains payable.

Tax charged at certain special rates carries its own flat surcharge, which does not depend on the total income. For example, a surcharge of 25% applies to tax under section 195(1)(i) on unexplained income (formerly s.115BBE of the Income-tax Act, 1961), and a surcharge of 12% applies to additional income-tax under section 170(5) on a secondary adjustment. That is why the question is limited to tax at the slab rates.

₹ 10 lakh and ₹ 25 lakh are not surcharge thresholds, and ₹ 1 crore is only the point at which the rate rises from 10% to 15%.