Old and new tax regimes
Two ways to work out income tax: lower slab rates with few deductions (new), or higher rates with deductions such as 80C and HRA (old).
The new regime is the default. Its slabs start at 5% above ₹4 lakh, and the rebate makes tax nil up to ₹12 lakh of taxable income (₹12.75 lakh of salary with the standard deduction). The old regime keeps 80C, 80D, HRA and home loan interest.
Salaried people can choose each year; the old regime only pays off with large deductions.
Income Tax Calculator
Your tax under the old and new regimes for FY 2026-27 — and which one saves more.
Related terms
Rules as of tax year 2026-27. Written by the Welthr team; last reviewed on . Not financial advice.