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Free tool · AY 2026-27

Old vs new regime

Which regime costs you less for AY 2026-27, and exactly how many rupees of deductions you would need before the old one wins.

An estimate, computed in your browser — nothing you type here is sent anywhere. It applies the ordinary rules and ignores surcharge relief, set-offs and anything specific to your documents. The return we build from your Form 16 does not.

New regime wins₹1,13,100You pay ₹1,13,100 less under the new regime.
The new regime wins at any level of deduction here. Even claiming ₹5,00,000 would not make the old regime cheaper on this salary.
New regime
Standard deduction₹-75,000
Deductions allowed₹0
Taxable income₹14,25,000
Tax payable₹97,500
Old regime
Standard deduction₹-50,000
Deductions allowed₹-1,50,000
Taxable income₹13,00,000
Tax payable₹2,10,600

The trade you are actually making

The new regime gives you wider slabs and a bigger standard deduction — ₹75,000 against ₹50,000 — and takes away almost every deduction in return. No 80C, no 80D, no HRA exemption, no deduction for interest on a self-occupied home loan.

So the question is never “which regime is better”. It is: do your deductions add up to more than the rate cut is worth? For most salaried people they do not, which is why the new regime wins more often than people expect.

The new regime is the default. Choosing the old one is a positive election you make when you file, and for anyone with business income it can only be made a limited number of times.

One thing worth watching: the s.87A rebate makes income up to ₹12,00,000 tax-free under the new regime, but crossing that line by a rupee can cost far more than a rupee. If you are close to it, the exact figure matters more than an estimate.

Common questions

Can I switch regimes every year?

If you have only salary and other income, yes — you choose afresh each year when you file. If you have business or professional income, the old regime can be elected and then withdrawn only once, and you cannot go back after that.

Does the old regime still make sense for anyone?

Yes — typically people with a home loan on a self-occupied property, full 80C, health insurance for parents under 80D, and HRA on a metro rent. Those stack up quickly. The calculator above tells you the exact threshold for your salary.

What counts towards the deductions figure?

Chapter VI-A deductions: 80C up to ₹1,50,000, 80D for health insurance, 80CCD(1B) for NPS, 80G for donations, 80TTA or 80TTB for interest. HRA and home loan interest are separate and are handled in the full return rather than here.

Want the exact figure, not an estimate?

Attach your Form 16 and we compute the whole return from the real document — every exemption, every deduction, both regimes, and the right ITR form.

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