Compare the new and old tax regimes side by side for FY 2026-27 (AY 2027-28). Includes standard deduction, Section 87A rebate, marginal relief, surcharge and 4% cess.
Your Income
₹
Old-Regime Deductions
₹
₹
₹
₹
Standard deduction is added automatically: ₹75,000 (new) / ₹50,000 (old) for salaried.
New vs Old Regime
New regime tax—
Old regime tax—
You save with better regime—
Effective tax rate (better regime)—
Monthly in-hand (approx, pre-PF)—
—
Includes 87A rebate, marginal relief and surcharge. Surcharge marginal relief and special-rate income (capital gains) not covered — confirm with a CA.
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Income tax slabs for FY 2026-27
Budget 2026 made no changes to slabs or rates. These are the applicable rates:
New regime (default)
Income Slab
Rate
Up to ₹4,00,000
Nil
₹4,00,001 – ₹8,00,000
5%
₹8,00,001 – ₹12,00,000
10%
₹12,00,001 – ₹16,00,000
15%
₹16,00,001 – ₹20,00,000
20%
₹20,00,001 – ₹24,00,000
25%
Above ₹24,00,000
30%
Plus: ₹75,000 standard deduction for salaried, Section 87A rebate (zero tax up to ₹12 lakh taxable income, with marginal relief just above it), surcharge for incomes above ₹50 lakh, and 4% health & education cess.
Old regime
Income Slab
Rate
Up to ₹2,50,000
Nil
₹2,50,001 – ₹5,00,000
5%
₹5,00,001 – ₹10,00,000
20%
Above ₹10,00,000
30%
The old regime allows deductions — 80C (₹1.5L), 80D, HRA, home loan interest, NPS — but has steeper slabs. It only wins when deductions are large. Read the full breakdown in our New vs Old Regime guide.
Income Tax FAQs
Is salary up to ₹12.75 lakh really tax-free?
Yes, for salaried taxpayers under the new regime: ₹12.75L gross − ₹75,000 standard deduction = ₹12L taxable, fully covered by the 87A rebate. Earn even slightly more and marginal relief limits your tax to the amount above ₹12L taxable.
When does the old regime win?
Roughly when total deductions (excluding standard deduction) exceed ₹4-4.5 lakh for incomes between ₹15-25 lakh — typically people claiming full 80C + high HRA + ₹2L home loan interest.
Do I need to opt for the new regime?
No — it's the default. To use the old regime, choose it while filing ITR (salaried can switch every year; business income has restrictions).
What is the ITR filing deadline?
For most individuals (non-audit), 15 September following the financial year, with belated/revised returns allowed later with fees. Verify the current year's notified dates on incometax.gov.in.