New vs Old Regime — FY 2025-26 / 2026-27
Enter amount in rupees — e.g. 5,00,000 means 5 lakh
Old Regime Deductions
Leave blank if not applicable. These only affect Old Regime calculation.
New Regime
Std. deduction 75,000
Old Regime
Std. deduction 50,000
For a gross salary of Rs.10 lakh with standard deduction, the New Regime results in zero tax due to the Section 87A rebate. The Old Regime would result in tax liability unless deductions exceed Rs.2.5 lakh. In most cases at this income level, the New Regime is better.
Yes, under the New Tax Regime. The Section 87A rebate of Rs.60,000 makes taxable income up to Rs.12 lakh effectively tax-free. For salaried individuals, the standard deduction of Rs.75,000 means gross salary up to Rs.12.75 lakh results in zero tax.
At Rs.15 lakh, the answer depends on your deductions. If your total deductions under the Old Regime exceed approximately Rs.3.75 lakh, the Old Regime becomes competitive. Otherwise the New Regime is better. Use the calculator above with your actual deductions to get the exact answer.
Salaried individuals can switch between the New and Old tax regime every financial year when filing their ITR. This flexibility means you should recalculate every year — especially when your salary, investments, or home loan situation changes significantly.
The standard deduction under the New Tax Regime is Rs.75,000 for FY 2025-26 and FY 2026-27. Budget 2026 made no changes to this amount. Under the Old Regime, the standard deduction remains Rs.50,000.
No. The New Tax Regime does not allow deductions under Section 80C, 80D, HRA, or home loan interest. It offers lower slab rates in exchange for giving up these deductions. The Old Regime allows all these deductions but at higher slab rates.