For Tax Year 2026-27 the slabs under both regimes are unchanged. The new regime remains the default; an individual who wants the old regime must opt for it.
New regime at a glance
- Nil up to ₹4 lakh, then 5% to ₹8 lakh, 10% to ₹12 lakh, 15% to ₹16 lakh, 20% to ₹20 lakh, 25% to ₹24 lakh and 30% above.
- Standard deduction of ₹75,000 for salaried individuals and pensioners.
- A rebate of up to ₹60,000 means no tax where taxable income does not exceed ₹12 lakh, with marginal relief just above that level.
Old regime at a glance
- Nil up to ₹2.5 lakh (higher for senior citizens), 5% to ₹5 lakh, 20% to ₹10 lakh and 30% above.
- Standard deduction of ₹50,000, plus deductions such as provident fund, insurance, ELSS, health insurance, HRA and home-loan interest.
Example: a salaried individual earning ₹15 lakh with ₹1.5 lakh of deductions pays about ₹97,500 under the new regime and about ₹2,10,600 under the old regime, including cess.
The old regime starts to make sense only when deductions are large. Salaried individuals can choose afresh each year; those with business income have far less flexibility to switch, so the choice deserves more care.
Try your own numbers in our income tax calculator.
This note is for general information and is not professional advice. Please consult us on the facts of your case before acting on it.
