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New vs Old Regime Comparison

Side-by-side comparison to choose the right tax regime.

The New vs Old Regime Comparison shows your tax under both regimes side by side, using your income and old-regime deductions. The slab rates are the same for FY 2025-26 (AY 2026-27) and Tax Year 2026-27, as Budget 2026 left them unchanged, and the New Tax Regime is the default in both years. It is meant for resident individuals choosing a regime.

Use the New vs Old Regime Comparison

Income

Old regime deductions

(These are NOT available under New Regime)

Side-by-Side

New Regime
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Old Regime
₹ 0

Taxable income

₹ 0
₹ 0

Surcharge (after marginal relief)

₹ 0
₹ 0
Enter income to see comparison.
The break-even deduction for your income appears here.

Generated on 16 October 2026 at skagandassociates.com — for information only, not professional advice

Income Tax Act 2025 transition: This tool covers both FY 2025-26 (AY 2026-27), under the Income Tax Act, 1961 (old section numbers such as 80C, 87A, 192), and Tax Year 2026-27, under the Income Tax Act, 2025 and Income Tax Rules, 2026 in force from 1 April 2026. Key changes: 80C→123, 87A→156, 192→392; Form 16→130; TDS uses payment codes 1001-1067. View full mapping →

Decide between the New Tax Regime (the default) and the Old Regime. Enter your income and old-regime deductions to see side-by-side tax computation. The slabs, rebate and standard deduction used here apply to both FY 2025-26 (AY 2026-27, Income-tax Act, 1961) and Tax Year 2026-27 (Income-tax Act, 2025); Budget 2026 did not change them. Figures are for a resident individual, including surcharge (with marginal relief) and 4% cess; the age category changes only the old-regime slabs.

When does each regime give lower tax?

It depends on how much you can claim in the old regime beyond the standard deduction (HRA, 80C, 80D, 80CCD(1B), home-loan interest and so on). The table shows the break-even deduction: the old regime gives tax no higher than the new regime once your old-regime deductions reach this amount. Figures are computed with this tool for a salaried resident below 60, including surcharge, marginal relief and cess.

Gross salaryBreak-even deduction
₹8 lakh₹2.50 lakh
₹10 lakh₹4.50 lakh
₹12.75 lakh₹7.25 lakh
₹15 lakh₹5.44 lakh
₹20 lakh₹7.08 lakh
₹24.75 lakh₹8.00 lakh
₹40 lakh₹8.00 lakh
₹55 lakh₹4.34 lakh
₹1.05 crore₹4.30 lakh
₹1.5 crore₹8.00 lakh
₹2.1 crore₹3.13 lakh
₹6 crore₹59.26 lakh
  • Up to ₹12.75 lakh of salary the new regime tax is nil, so the old regime matches it only if deductions bring old-regime taxable income down to ₹5 lakh.
  • From about ₹24.75 lakh to ₹50 lakh the break-even is ₹8 lakh. Above ₹50 lakh it moves with the surcharge thresholds (it is lower just above ₹50 lakh, ₹1 crore and ₹2 crore, where old-regime deductions can also reduce surcharge), and above ₹5 crore it is much higher because the old regime's surcharge rises to 37% while the new regime's stops at 25%.
  • Deduction caps still apply: 80C ₹1.5 lakh, 80CCD(1B) ₹50,000, 80D by age and cover, self-occupied home-loan interest ₹2 lakh. The calculator above shows the break-even for your own income, salary status and age.
  • Switching: Salaried individuals can switch each year. Business/profession income earners can switch only once (via Form 10-IEA for FY 2025-26; from Tax Year 2026-27 the Section 202 option is exercised in the return itself), and re-entering new regime is a once-in-lifetime option.
Important note: This tool provides an indicative output only. It does not factor in every special provision, surcharge, exception, or recent notification. Verify with the firm before acting on any computation.

Frequently Asked Questions

What is the difference between the old and new tax regimes?
The new regime offers lower slab rates but forgoes most deductions and exemptions — such as Section 80C, 80D, HRA and self-occupied home-loan interest — while the old regime has higher rates with the full set of deductions. The new regime is the default; taxpayers must actively opt for the old regime if it suits them better.
Which deductions are still allowed under the new regime?
The new regime allows a standard deduction of ₹75,000 for salaried taxpayers and pensioners, employer contributions to NPS under Section 80CCD(2), and a deduction against family pension, among a few others. Popular claims such as Section 80C investments, 80D health insurance premiums, HRA and LTA exemptions are not available.
Up to what income is tax zero under the new regime?
For FY 2025-26 (AY 2026-27), the Section 87A rebate makes tax nil for resident individuals with total income up to ₹12 lakh under the new regime — effectively ₹12.75 lakh for salaried taxpayers with the standard deduction. Just above ₹12 lakh, marginal relief limits the tax to the income in excess of ₹12 lakh. Under the old regime, the rebate limit remains ₹5 lakh. Budget 2026 kept these limits for Tax Year 2026-27, where the rebate is in Section 156 of the Income-tax Act, 2025. Special-rate income is generally outside the rebate.
Can I switch between the two regimes every year?
Salaried individuals without business income can choose either regime each year at the time of filing their return. Taxpayers with business or professional income can opt out of the new regime only once, by filing Form 10-IEA for FY 2025-26 or, from Tax Year 2026-27, by exercising the Section 202 option in the return itself (Rule 136), and after switching back to the new regime they cannot opt for the old regime again.

Due in the next 30 days

Income tax
  1. ITR Filing (taxpayers under audit, companies)In 14 days · Income tax
  2. TCS statement for Jul–Sep 2026 quarter (Form 143)In 14 days · Income tax
  3. TDS statements for Jul–Sep 2026 quarter (Forms 138 / 140 / 144)In 14 days · Income tax
  4. TDS / TCS deposit (e-Pay Tax, Challan ITNS 281) for OctoberIn 21 days · Income tax

Full compliance calendar → Statutory dates, which can be extended by notification. General information only.

Published by SKAG and Associates, Chartered Accountants, New Delhi · Proprietor CA Gaurav Singh (ICAI M.No. 539050). General information only, not professional advice.

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