Old vs New Tax Regime India
taxDefinition
India offers two income tax regimes: the Old Regime (with higher slab rates but allows deductions under 80C, HRA, 80D) and the New Regime (default from FY 2024-25, with lower slab rates but no deductions except standard deduction of ₹75,000). The New Regime provides zero tax for income up to ₹7 lakh via the Section 87A rebate.
Detailed Explanation
Old Regime slabs (FY 2026-27): 0% up to ₹2.5L, 5% from ₹2.5L–₹5L, 20% from ₹5L–₹10L, 30% above ₹10L. Standard deduction: ₹50,000. Deductions available: 80C (₹1.5L), HRA, 80D, home loan interest, NPS, LTA.
New Regime slabs (FY 2026-27, default): 0% up to ₹3L, 5% from ₹3L–₹7L, 10% from ₹7L–₹10L, 15% from ₹10L–₹12L, 20% from ₹12L–₹15L, 30% above ₹15L. Standard deduction: ₹75,000. No other deductions allowed.
The break-even point — where both regimes result in equal tax — is typically around ₹3.75 lakh in total deductions (beyond the standard deduction). If your deductions exceed this, the old regime may be more beneficial. Use ToolsDock's Income Tax Calculator to compare both regimes for your exact income.
🏛️ Income Tax Calculator
Compare Old vs New income tax regime FY 2026-27