RAS question
Were there any changes in income tax slabs in Budget 2026-27?
Correct answer: (B) No changes in slabs.
Budget 2026-27 made no changes to income tax slabs while bringing in the Income Tax Act, 2025.
Explanation
Budget 2026-27 did not alter the income tax slabs. The cited New India Samachar page, in its Budget 2026-27 coverage, states that no changes were made to the income tax slabs or exemptions, while the Income Tax Act, 2025 would come into effect from April 1, 2026. That distinction is the point tested here: the Budget introduced a new legal framework and simplification measures, but it did not raise, reduce, or add slabs. Therefore, the substantive answer is that the slab structure remained unchanged.
Why the other options are wrong
- (A) Slabs were not raised; the cited Budget coverage says no changes were made to income tax slabs or exemptions.
- (C) Slabs were not reduced, because the Budget kept the income tax slab structure unchanged.
- (D) No new slabs were added; the change mentioned was the Income Tax Act, 2025 coming into effect, not a new slab structure.
Concept
This tests Budget taxation measures, especially the difference between changing tax rates or slabs and changing the legal framework for income tax. RAS often repeats such questions because aspirants must separate headline reforms from the actual fiscal measure asked.