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New Tax Regime 2026-27 for Defence Personnel: Slabs, Rebate up to Rs 12 Lakh and Exemptions

The new tax regime for defence personnel has changed a lot since 2024. Quick summary for FY 2026-27:
  • Slabs: Nil up to Rs 4 lakh, 5% (4-8L), 10% (8-12L), 15% (12-16L), 20% (16-20L), 25% (20-24L), 30% above Rs 24 lakh
  • Rebate: Nil tax up to Rs 12 lakh taxable income (Rs 12.75 lakh for salaried after standard deduction)
  • Standard deduction: Rs 75,000 on salary and pension; family pension Rs 25,000 or 1/3rd
  • Allowed: Gratuity, leave encashment, uniform and conveyance allowance, AFPP/DSOP, Agniveer Corpus Fund
  • Not allowed: HRA, LTA, 80C, 80D, 80G, field area and high altitude allowances
Official sources: PIB Budget 2025-26 summary | PIB Budget 2026-27 summary
Full updated guide: Read the complete article

Discussion: Which regime did you choose for FY 2026-27, and why? Share your experience with your Pay and Accounts Office.
 
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