New vs Old Tax Regime FY 2026-27: Complete Slabs, Rebates & Break-Even Guide
In-depth analysis of New vs Old Tax Regime for FY 2026-27 (AY 2027-28). Learn slab rates, ₹75,000 standard deduction, Section 87A rebate up to ₹12.75L, and exact salary breakeven points.
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Frequently Asked Questions (FAQs)
What is the zero tax limit in the New Tax Regime for FY 2026-27?
For salaried individuals, gross income up to ₹12,75,000 incurs ₹0 income tax under the New Tax Regime. This is achieved through the ₹75,000 standard deduction (reducing taxable income to ₹12,00,000) and the maximum ₹60,000 tax rebate under Section 87A.
What is the Standard Deduction for FY 2026-27?
The standard deduction for salaried employees and pensioners under the New Tax Regime is ₹75,000. Under the Old Tax Regime, it remains ₹50,000.
Can I claim HRA or Home Loan Interest in the New Tax Regime?
No. The New Tax Regime does not allow deductions under Section 80C, Section 80D, HRA (§10(13A)), or Self-Occupied Home Loan Interest (§24(b)). However, employer NPS contribution under Section 80CCD(2) up to 14% of basic salary is still permissible.
Who should choose the Old Tax Regime in FY 2026-27?
Individuals paying high house rent (claiming large HRA), servicing heavy home loans (₹2 Lakh interest deduction), and exhausting Section 80C and 80D deductions whose total eligible deductions exceed ₹4,00,000 to ₹4,50,000 generally benefit from the Old Regime.
Relevant Financial Calculators
Put these concepts into practice using our free, instant financial calculators: