AY 2026-27 Tax Planning Guide

New vs Old Tax Regime

Compare the New Tax Regime and Old Tax Regime for AY 2026-27. Understand income tax slabs, deductions, exemptions and choose the best tax regime for maximum savings.

What is New and Old Tax Regime?

The Income Tax Department provides two options for taxpayers:

  • Old Tax Regime — Higher tax slabs with deductions and exemptions.
  • New Tax Regime — Lower tax rates with fewer deductions.
Most salaried employees now compare both regimes before filing ITR to reduce tax liability.

New Tax Regime Slabs AY 2026-27

Income Range Tax Rate
Up to ₹3,00,000 Nil
₹3,00,001 to ₹7,00,000 5%
₹7,00,001 to ₹10,00,000 10%
₹10,00,001 to ₹12,00,000 15%
₹12,00,001 to ₹15,00,000 20%
Above ₹15,00,000 30%

New vs Old Tax Regime Comparison

Particular Old Regime New Regime
Tax Rates Higher Lower
80C Deduction Available Not Available
HRA Exemption Available Not Available
Home Loan Benefits Available Limited
Standard Deduction Available Available
Best Suitable For High Investments Low Investments

Choose Old Regime If

  • You invest under 80C
  • You claim HRA
  • You pay home loan interest
  • You claim multiple deductions

Choose New Regime If

  • You have fewer investments
  • You want simple tax filing
  • You do not claim deductions
  • You prefer lower tax rates

Frequently Asked Questions

Which tax regime is better?

It depends on your income, deductions and investments.

Can salaried employees switch tax regime every year?

Yes, salaried individuals can generally choose tax regime every financial year.

Is 80C deduction available in new regime?

Most deductions including 80C are not available under the new regime.

Need Help Choosing Best Tax Regime?

FileBob helps salaried taxpayers compare tax regimes and file Income Tax Return online.

File ITR Online @ ₹118