Old Regime vs New Regime — Comparison Worksheet (AY 2026-27)
Source: Income Tax Department e-filing portal — Salaried Individuals AY 2026-27 guidance page.
Slab rates (for reference)
New Regime u/s 115BAC (default):
| Income slab (Rs.) | Rate |
|---|---|
| Up to 4,00,000 | Nil |
| 4,00,001 – 8,00,000 | 5% on excess over 4,00,000 |
| 8,00,001 – 12,00,000 | Rs. 20,000 + 10% on excess over 8,00,000 |
| 12,00,001 – 16,00,000 | Rs. 60,000 + 15% on excess over 12,00,000 |
| 16,00,001 – 20,00,000 | Rs. 1,20,000 + 20% on excess over 16,00,000 |
| 20,00,001 – 24,00,000 | Rs. 2,00,000 + 25% on excess over 20,00,000 |
| Above 24,00,000 | Rs. 3,00,000 + 30% on excess over 24,00,000 |
Old Regime (individual below 60):
| Income slab (Rs.) | Rate |
|---|---|
| Up to 2,50,000 | Nil |
| 2,50,001 – 5,00,000 | 5% on excess over 2,50,000 |
| 5,00,001 – 10,00,000 | Rs. 12,500 + 20% on excess over 5,00,000 |
| Above 10,00,000 | Rs. 1,12,500 + 30% on excess over 10,00,000 |
Rebate u/s 87A:
- New Regime: Rs. 60,000 where taxable income ≤ Rs. 12,00,000
- Old Regime: Rs. 12,500 where taxable income ≤ Rs. 5,00,000
Surcharge: 10% (above Rs. 50L), 15% (above Rs. 1cr), 25% (above Rs. 2cr); 37% in Old Regime for above Rs. 5cr (capped at 25% in New Regime).
Health & Education Cess: 4% on (tax + surcharge) — both regimes.
Comparison worksheet
| Particular | Old Regime | New Regime |
|---|---|---|
| Gross salary | — | (same) |
| Less: Standard deduction | (50,000) | (75,000 — verify against Finance Act 2024/25 wording) |
| Less: HRA exemption | (compute) | NOT AVAILABLE |
| Less: LTC exemption | (compute) | NOT AVAILABLE |
| Less: Professional tax (state) | (paid) | NOT AVAILABLE |
| **Income from salary** | — | — |
| Add: Income from house property | (rental income less Sec 24 deductions) | (same gross, but no Sec 24 interest deduction in NR) |
| Less: Home-loan interest (Sec 24) — self-occupied | (Up to Rs. 2 lakh) | NOT AVAILABLE |
| Add: Income from other sources | (interest, dividend, etc.) | (same) |
| Add: Capital gains | (per applicable section) | (same) |
| Add: Business income | — | — |
| **Gross total income** | — | — |
| Less: Chapter VI-A deductions | — | — |
| — Sec 80C | (up to 1,50,000) | NOT AVAILABLE |
| — Sec 80CCD(1B) NPS | (up to 50,000) | NOT AVAILABLE |
| — Sec 80D health insurance | (per category) | NOT AVAILABLE |
| — Sec 80E education loan interest | (paid) | NOT AVAILABLE |
| — Sec 80G donations | (eligible %) | NOT AVAILABLE |
| — Sec 80CCD(2) employer NPS contribution | (Up to 14% / 10%) | (Up to 14% / 10% — RETAINED in NR) |
| **Taxable income** | — | — |
| Tax on above (per slab) | — | — |
| Less: Rebate u/s 87A | — | — |
| Add: Surcharge | — | — |
| Add: Health & Education Cess (4%) | — | — |
| Less: TDS / Advance tax already paid | — | — |
| **Net tax payable / (refund)** | — | — |
How to read the result
- The regime with **lower "Net tax payable"** is the better choice for the year
- Salaried employees can switch regimes annually at the time of declaration to employer / at filing time
- Business / professional income (other than salary) — switching out of New Regime is a multi-year lock-in under Sec 115BAC(6); be careful before exiting
Indicative break-even
In our experience the Old Regime tends to come out ahead when total Chapter VI-A deductions + HRA + home-loan interest (Sec 24) exceeds approximately Rs. 3-4 lakh. Below that, the lower New Regime slab rates usually win. Run the actual comparison — anchor on numbers, not heuristics.
For a personalised regime computation, please reach out via the contact page.