AY 2027-28
Budget 2026 kept income tax slabs unchanged. The new regime remains the default with 7 slabs from 0% to 30%. Income up to ₹12L is effectively tax-free under the new regime via Section 87A rebate.
New Regime — Effective Tax-Free
₹12 Lakh
After ₹75,000 standard deduction + Section 87A rebate
Old Regime — Tax-Free
₹5 Lakh
After ₹50,000 standard deduction + 87A
Cess (Both Regimes)
4%
Health & Education Cess on tax + surcharge
New regime is the default — you must actively opt for old regime when filing ITR.
New Regime — Tax-Free
₹12 Lakh
After ₹75,000 standard deduction + Section 87A rebate
Old Regime — Tax-Free
₹5 Lakh
After ₹50,000 standard deduction + Section 87A rebate
Health & Education Cess
4%
On tax + surcharge. Applies to both regimes.
New Tax Regime — FY 2026-27
Default Regime| Income Range | Tax 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% |
Section 87A Rebate: If taxable income ≤ ₹12,00,000 under new regime, full tax rebate applies — net tax = ₹0. Standard deduction of ₹75,000 applies to salaried individuals, so gross salary up to ₹12,75,000 can be tax-free.
Old Tax Regime — FY 2026-27
Optional — Must Opt InBelow 60 Years
| Income Range | 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% |
Senior Citizens (60–80 Years)
| Income Range | Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Old Regime Key Deductions: Section 80C (₹1.5L), 80D (₹25K–₹50K), HRA exemption, home loan interest (₹2L), standard deduction (₹50K). Super senior citizens (80+) have nil tax up to ₹5L.
New vs Old Regime — Quick Comparison
| Feature | New Regime | Old Regime |
|---|---|---|
| Default | Yes (automatic) | Must opt in |
| Basic exemption | ₹4,00,000 | ₹2,50,000 |
| Standard deduction | ₹75,000 | ₹50,000 |
| Section 87A rebate | Up to ₹12L income | Up to ₹5L income |
| Section 80C (₹1.5L) | Not available | Available |
| Section 80D (health) | Not available | Available |
| HRA exemption | Not available | Available |
| Home loan interest | Not available | Up to ₹2L |
| NPS 80CCD(2) | Available | Available |
Free Tool
ITR Tax Calculator
Compare old vs new regime with your actual income and deductions. See exact tax liability, rebate 87A, cess, effective rate, and monthly TDS.
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Comparison Guide
Old vs New Regime
Detailed comparison with examples at ₹8L, ₹12L, ₹15L, ₹20L income levels. Which regime saves more?
Read comparison →
I calculate both regimes and recommend the better option. ITR-1 starting ₹399.
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