The new regime is the default. You can still choose the old one, and for anyone with a home loan and a full Rs 1,50,000 of 80C it often wins. Put your numbers in and see.
Slabs, standard deduction and the section 87A rebate used here are the AY 2026–27 figures. Capital gains are taxed at their own special rates and are not part of this quick comparison — your full return handles them separately.
The new regime costs Rs 1,40,300 less on these figures.
| Old regime — below 60 years | |
|---|---|
| Up to 2,50,000 | Nil |
| 2,50,001 to 5,00,000 | 5% |
| 5,00,001 to 10,00,000 | 20% |
| Above 10,00,000 | 30% |
| New regime — every age | |
|---|---|
| Up to 4,00,000 | Nil |
| 4,00,001 to 8,00,000 | 5% |
| 8,00,001 to 12,00,000 | 10% |
| 12,00,001 to 16,00,000 | 15% |
| 16,00,001 to 20,00,000 | 20% |
| 20,00,001 to 24,00,000 | 25% |
| Above 24,00,000 | 30% |
Age changes the old regime only. The basic exemption is Rs 2,50,000 below 60, Rs 3,00,000 for a senior citizen aged 60 to 79, and Rs 5,00,000 from 80. New regime slabs are the same at every age.
| Relief | Old regime | New regime |
|---|---|---|
| Standard deduction u/s 16(ia) | Rs 50,000 | Rs 75,000 |
| Professional tax u/s 16(iii) | Allowed | Not allowed |
| HRA exemption u/s 10(13A) | Allowed | Not allowed |
| Leave travel allowance u/s 10(5) | Allowed | Not allowed |
| 80C, 80D, 80E, 80G and most of Chapter VI-A | Allowed | Not allowed |
| 80CCD(1B) — extra NPS Rs 50,000 | Allowed | Not allowed |
| 80CCD(2) — employer NPS contribution | Allowed | Allowed |
| 80TTA / 80TTB interest deduction | Allowed | Not allowed |
| Interest u/s 24(b), self-occupied house | Up to Rs 2,00,000 | Not allowed |
| Interest u/s 24(b), let-out house | Full interest | Full interest, but the loss cannot be set off against other heads |
| Family pension deduction u/s 57(iia) | Up to Rs 15,000 | Up to Rs 25,000 |
| Section 87A rebate threshold | Total income up to Rs 5,00,000 | Total income up to Rs 12,00,000 |
| Top surcharge rate | 37% | 25% |