Question

In the Financial Year 2026-27, the maximum total income for which tax liability for individual tax payers is NIL is

• A. Rs. 10 Lakhs
• B. Rs. 15 Lakhs
• C. Rs. 14 Lakhs
• D. Rs. 12 Lakhs

Hint:

FY 2026–27 → Income up to Rs. 12 lakhs → Nil tax liability.

Answer 1

The Correct Option is D

The question asks about the maximum total income for which the tax liability for individual taxpayers is NIL for the Financial Year 2026-27.

As per the income tax regulations, the Indian government set a basic exemption limit for taxpayers, which is subject to changes and can vary from year to year. For the Financial Year 2026-27, consider the following:

1. The Indian government often provides certain tax reliefs through rebates under Section 87A for individuals. In the Finance Bill or budgets announced in the years preceding 2026-27, tax policies are laid out which influence these limits.

2. In recent years, there has been an emphasis on providing higher exemptions or standard deductions to reduce the tax burden on individuals. For Financial Year 2026-27, it is concluded that with available deductions and the general exemption limit, an individual can maintain a total income of up to Rs. 12 Lakhs to have a NIL tax liability.

3. The figure of Rs. 12 Lakhs assumes the benefit of the rebate and other deductions like standard deduction, investments under Section 80C, etc., all contributing to a reduced taxable income to the level of zero tax liability.

Let us analyze the options:

• Rs. 10 Lakhs: This figure is below Rs. 12 Lakhs, so tax liability can be NIL.
• Rs. 15 Lakhs: Usually, even with rebates and deductions, maintaining NIL tax at such a level is uncommon and not feasible based on typical tax policies.
• Rs. 14 Lakhs: Similar to Rs. 15 Lakhs, it is unlikely to have a completely NIL tax liability at this income level, keeping typical exemptions in mind.
• Rs. 12 Lakhs: As concluded, under favorable tax conditions and applying all relevant tax reliefs, Rs. 12 Lakhs is the correct answer for NIL tax liability.

Therefore, the correct answer is that for the Financial Year 2026-27, the maximum total income for which tax liability for individual taxpayers is NIL is Rs. 12 Lakhs.