How to calculate income tax under new vs old regime for FY 2026-27?

Under the new regime (FY 2026-27), your taxable income of Rs 18 lakh falls in the 30% slab after standard deduction of Rs 75,000. Tax = 3×2.5L + 5×5L + 8.2L×30% = 75,000 + 2,50,000 + 2,46,000 = Rs 5,71,000 minus rebate under 87A = nil. Total approximately Rs 5.71 lakh.

Under the new regime (FY 2026-27), your taxable income of Rs 18 lakh falls in the 30% slab after standard deduction of Rs 75,000. Tax = 3×2.5L + 5×5L + 8.2L×30% = 75,000 + 2,50,000 + 2,46,000 = Rs 5,71,000 minus rebate under 87A = nil. Total approximately Rs 5.71 lakh.

Under the new regime (FY 2026-27), your taxable income of Rs 18 lakh falls in the 30% slab after standard deduction of Rs 75,000. Tax = 3×2.5L + 5×5L + 8.2L×30% = 75,000 + 2,50,000 + 2,46,000 = Rs 5,71,000 minus rebate under 87A = nil. Total approximately Rs 5.71 lakh.

Under old regime with HRA, Section 80C (home loan principal Rs 1.5L + life insurance Rs 25K + ELSS Rs 25K), 80D (Rs 25K health), 80E education loan interest, and HRA exemption of approximately Rs 1.2L, your taxable income could be reduced significantly, but the slab rates are higher. Old regime may be beneficial if your investments and deductions exceed Rs 4 lakh.

Under old regime with HRA, Section 80C (home loan principal Rs 1.5L + life insurance Rs 25K + ELSS Rs 25K), 80D (Rs 25K health), 80E education loan interest, and HRA exemption of approximately Rs 1.2L, your taxable income could be reduced significantly, but the slab rates are higher. Old regime may be beneficial if your investments and deductions exceed Rs 4 lakh.

Under old regime with HRA, Section 80C (home loan principal Rs 1.5L + life insurance Rs 25K + ELSS Rs 25K), 80D (Rs 25K health), 80E education loan interest, and HRA exemption of approximately Rs 1.2L, your taxable income could be reduced significantly, but the slab rates are higher. Old regime may be beneficial if your investments and deductions exceed Rs 4 lakh.