India Finance
New Tax Regime vs Old Tax Regime India FY 2026-27: Who Wins at Every Salary Level?
The new tax regime has been the default for salaried employees since FY 2023-24, and Budget 2025 made it dramatically more attractive — zero tax on gross salary up to ₹12.75 lakh (₹12 lakh taxable income with 87A rebate, plus ₹75,000 standard deduction). At ₹10 lakh salary, the new regime produces zero tax liability versus ₹59,800 under the old regime even with full 80C, 80D, and NPS deductions. But the old regime still wins for those with high HRA exemptions and home loan interest above ₹15 lakh income.