Question 1

Which is better, old or new tax regime for FY 2026-27?

Accepted Answer

It depends entirely on how much you can claim under the old regime. If your combined deductions — 80C, 80D, NPS, home loan interest, HRA — are low, the new regime usually wins because of its wider slabs and the full Section 87A rebate up to ₹12 lakh taxable income. If your deductions are substantial, the old regime can win. Use the breakeven figure above to know your exact tipping point.

Question 2

Is the new tax regime the default regime?

Accepted Answer

Yes. Since AY 2024-25 the new regime is the default. If you want to be taxed under the old regime you must specifically opt for it when filing your ITR (or via your employer for TDS). You can still switch back to the new regime at filing time even if you defaulted into it.

Question 3

Can I switch between old and new regime every year?

Accepted Answer

Business income filers can switch, but only once — once they opt out of the new regime they cannot opt back in for that year and need to file Form 10-IEA. Salaried individuals with no business income can switch every year freely; their choice for TDS (employer) and for ITR filing can even differ.

Question 4

What is the Section 87A rebate?

Accepted Answer

Section 87A gives a resident individual a rebate that reduces tax payable to nil. Under the new regime for FY 2026-27, taxable income up to ₹12 lakh gets a rebate of up to ₹60,000. Under the old regime, taxable income up to ₹5 lakh gets a rebate of up to ₹12,500.

Question 5

What happens just above ₹12 lakh?

Accepted Answer

Just above ₹12 lakh taxable income, the 87A rebate stops — without relief, tax would jump sharply. Marginal relief caps the tax at the amount of income earned above ₹12 lakh, so the additional tax never exceeds the additional income earned. The calculator applies this automatically and shows a note when it does.

Question 6

Do I lose HRA and 80C in the new regime?

Accepted Answer

Yes. The new regime does not allow most Chapter VI-A deductions (80C, 80D, 80E, etc.) or HRA exemption or home-loan interest on a self-occupied house. Only the standard deduction (₹75,000 for salaried) and employer NPS contribution under 80CCD(2) remain available.

Question 7

Is standard deduction available?

Accepted Answer

Yes, in both regimes for salaried individuals and pensioners. The new regime allows ₹75,000; the old regime allows ₹50,000. The calculator applies it automatically when you select "Salaried".

Question 8

How much surcharge applies above ₹50 lakh?

Accepted Answer

Surcharge is 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore, and 37% above ₹5 crore (old regime only — the new regime caps at 25% even above ₹5 crore). Marginal relief applies at every threshold so the extra tax never exceeds the extra income earned.

Slab	Rate	Tax
₹0 – ₹4,00,000	0%	₹0
₹4,00,000 – ₹8,00,000	5%	₹20,000
₹8,00,000 – ₹12,00,000	10%	₹32,500

Slab	Rate	Tax
₹0 – ₹2,50,000	0%	₹0
₹2,50,000 – ₹5,00,000	5%	₹12,500
₹5,00,000 – ₹10,00,000	20%	₹1,00,000
₹10,00,000 – Above ₹10,00,000	30%	₹45,000

Income Tax Calculator — Old vs New Regime

Breakeven Point

Frequently asked questions

Other tools

GST Calculator

Capital Gain Calculator

HSN / SAC Finder