New Regime Slabs for 2026-27
- Up to ₹4 lakh: nil
- ₹4 to 8 lakh: 5%
- ₹8 to 12 lakh: 10%
- ₹12 to 16 lakh: 15%
- ₹16 to 20 lakh: 20%
- ₹20 to 24 lakh: 25%
- Above ₹24 lakh: 30%
Salaried people get a ₹75,000 standard deduction. A rebate of up to ₹60,000 makes tax nil when taxable income is ₹12 lakh or less, so a salary of up to ₹12.75 lakh pays no tax. Just above ₹12 lakh, marginal relief keeps tax from exceeding the income above ₹12 lakh. A 4% health and education cess applies on top.
Old Regime
Slabs are nil up to ₹2.5 lakh (₹3 lakh at 60, ₹5 lakh at 80), 5% to ₹5 lakh, 20% to ₹10 lakh and 30% above, with a ₹50,000 standard deduction and a rebate up to ₹5 lakh of taxable income. In exchange you can claim HRA, 80C up to ₹1.5 lakh, 80D health insurance, home loan interest up to ₹2 lakh and more.
Example: ₹15 lakh salary, with ₹1.5 lakh in 80C and ₹25,000 in 80D.
New regime: about ₹97,500. Old regime: about ₹2,02,800. The new regime wins unless large HRA or home loan interest is added.