The new tax slabs still apply to everyone. However, if your total taxable income is ₹12 lakh or below, a rebate is provided to nullify your tax. This means you technically fall into the tax brackets, but you don't actually pay tax. Example: For someone earning ₹12 lakh: Tax calculation as per new slabs: ₹0 - ₹4 lakh → 0% tax = ₹0 ₹4 - ₹8 lakh → 5% tax = ₹20,000 ₹8 - ₹12 lakh → 10% tax = ₹40,000 Total tax before rebate = ₹60,000 Rebate under Section 87A: ₹60,000 *Final Tax Payable = ₹0*