New regime and old regime rates, the ₹12 lakh rebate, surcharge and cess — read live from the same rules engine that powers the KyaTax calculator and ITR wizard.
Budget 2026 changed no slab, rebate or limit. FY 2026-27 is the first "Tax Year" under the Income-tax Act, 2025 — same numbers, new section references.
| Taxable income | Rate | Tax at top of slab |
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| Taxable income | Rate | Tax at top of slab |
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| Taxable income | Rate | Tax at top of slab |
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| Taxable income | Rate | Tax at top of slab |
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| Gross salary | New regime tax | Old regime tax (no deductions) | Old regime tax (₹3 lakh deductions) |
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Includes 4% cess. Old regime examples take the ₹50,000 standard deduction; the "₹3 lakh deductions" column adds 80C, 80D and similar. Compute your own case — including HRA, home loan and employer NPS — on the Income Tax Calculator.
With taxable income up to ₹12 lakh the new regime is nil tax, so it wins unless your deductions are so large that the old regime also reaches nil. Above that, the old regime needs roughly ₹8 lakh or more of combined deductions (HRA, 80C, 80D, home-loan interest, NPS) at higher incomes to overtake the new regime. Salaried taxpayers without business income can switch regimes every year in the return; those with business income can opt out of the new regime only once.
Two things that survive in the new regime: the ₹75,000 standard deduction and employer NPS under 80CCD(2) up to 14% of basic plus DA.
In the new regime, for taxable income up to ₹12,00,000 — the section 87A rebate (up to ₹60,000) wipes out the slab tax. A salaried person therefore pays nil up to ₹12.75 lakh of salary after the ₹75,000 standard deduction. Just above the limit, marginal relief ensures the tax never exceeds the income over ₹12 lakh. Capital gains and other special-rate income are not covered by the rebate.
No. The February 2026 Budget left the new-regime slabs, the 87A rebate and the standard deduction unchanged for FY 2026-27. What changed is the law itself — the Income-tax Act, 2025 replaces the 1961 Act from 1 April 2026, with "Tax Year" replacing "previous year" and renumbered sections.
For taxable income slightly above ₹12 lakh in the new regime, tax is limited to the amount by which income exceeds ₹12 lakh. At ₹12,25,000 the slab tax of ₹63,750 is capped at ₹25,000 (plus cess), so a small rise in income never produces a larger rise in tax.
No — the new regime has one slab table for all ages. Age-based higher exemption limits (₹3 lakh and ₹5 lakh) exist only in the old regime.
The ITR wizard compares both regimes on your actual numbers and handles belated returns after the due date.
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