New Regime FY 2026-27: Income up to ₹12L is tax-free (after ₹60,000 rebate) | Standard Deduction: ₹75,000 | Employer NPS exempt up to 14% of Basic
· FY 2026-27 (AY 2027-28)
Enter your actual fixed Basic Salary component (usually 35–50% of CTC), not a percentage
This is part of your CTC, not an amount on top of it
Varies by state; ₹2,400/yr is the common max (e.g. Karnataka, Maharashtra)
Exempt up to 14% (New Regime) / 10% (Old Regime) of Basic under Sec 80CCD(2)
💡 These inputs affect the Old Regime calculation only — HRA, investments, and loan interest are not deductible under the New Regime.
Enter your CTC to compare regimes.
Based on -- · Net Monthly In-Hand (excl. bonus): -- · Net Annual In-Hand (incl. bonus): --
⚠️ Estimates only. Actual TDS may vary based on employer policy, exact CTC structure, and other income sources.
| Component | Amount |
|---|
| Component | Amount |
|---|
The New Tax Regime is the default regime since FY 2023-24, offering lower slab rates but almost no deductions. The Old Tax Regime retains higher slab rates but allows exemptions like HRA, 80C, and home loan interest.
Rule of thumb: if your total deductions (HRA + 80C + home loan interest + others) exceed roughly ₹4–4.5 lakh, the Old Regime may still work out cheaper.
| Feature | Old Regime | New Regime |
|---|---|---|
| Basic Exemption | ₹2.5L (below 60) | ₹4L |
| Standard Deduction | ₹50,000 | ₹75,000 |
| Sec 87A Rebate Limit | ₹5L taxable income | ₹12L taxable income |
| HRA Exemption | Available | Not available |
| Sec 80C (₹1.5L) | Available | Not available |
| Home Loan Interest (Sec 24b) | Available | Not available |
| Employer NPS (Sec 80CCD(2)) | Up to 10% of Basic | Up to 14% of Basic |
| Highest Surcharge | 37% (>₹5Cr) | 25% (capped) |
| Default Regime | Optional (must elect) | Default |
Slabs and limits as per Union Budget 2025, retained without change in Union Budget 2026 for FY 2026-27.
| Income Slab | Tax Rate |
|---|---|
| ₹0 – ₹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% |
| Income Slab | Tax Rate |
|---|---|
| ₹0 – ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Compare both regimes every year before filing — your ideal choice depends on how much you invest and claim in deductions.
Rs 0-4L: Nil, Rs 4-8L: 5%, Rs 8-12L: 10%, Rs 12-16L: 15%, Rs 16-20L: 20%, Rs 20-24L: 25%, above Rs 24L: 30%. Income up to Rs 12 lakh is effectively tax-free after the Section 87A rebate, and salaried employees get an additional Rs 75,000 standard deduction.
It depends on your deductions. If your HRA, 80C, home loan interest, and other exemptions add up to more than roughly Rs 4–4.5 lakh, the Old Regime is usually cheaper. Otherwise, the New Regime typically gives higher in-hand salary.
No, up to 14% of Basic salary under the New Regime (10% under the Old Regime) under Section 80CCD(2). Any employer NPS contribution above this limit is added back to taxable income.
No. HRA exemption, along with most other exemptions like 80C and home loan interest, is only available under the Old Tax Regime.
Salaried individuals without business income can choose between Old and New Regime every financial year at the time of filing returns. Individuals with business income can switch only once in a lifetime.
No. Professional Tax is deductible from salary income only under the Old Tax Regime. It is still deducted from your salary either way, but does not reduce your taxable income under the New Regime.
Marginal relief ensures that if your taxable income is just above the rebate threshold (Rs 12L new / Rs 5L old), your tax liability doesn't exceed the amount of income that crosses the threshold — avoiding a sudden tax jump.