ANKIVA ONE
Head-to-Head Comparison

New Tax Regime vs Old Tax Regime: AY 2026-27 Comparison

Analyze which income tax regime yields the lowest tax outgo based on your salary bracket and eligible deductions under AY 2026-27 rules.

Option A

New Tax Regime (Default)

7-tier lower tax slabs, ₹75,000 standard deduction, zero tax up to ₹12.75 Lakh

Expected Yield / Cost:0% to 30% progressive tax rates across 7 slabs
Tax Treatment:₹75,000 flat standard deduction + Section 87A rebate up to ₹12L taxable
Best Suited For:

Salaried individuals earning up to ₹25L with deductions under ₹4.5 Lakh

Key Advantages
  • Zero tax on salaried income up to ₹12.75 Lakh (AY 2026-27 Section 87A rebate)
  • Lower progressive tax slabs across all brackets (5% to 30%)
  • No need to lock funds in mandatory 80C products or collect rent receipts
  • Surcharge capped at 25% for high earners
Drawbacks & Risks
  • Does not allow Section 80C, 80D, 80CCD(1B), HRA, or Home Loan Interest deductions
Calculate New Tax Regime (Default)
Option B

Old Tax Regime

Higher tax slabs but allows comprehensive Chapter VI-A itemized deductions

Expected Yield / Cost:5% to 30% tax rates with higher top bracket
Tax Treatment:₹50,000 standard deduction + full Chapter VI-A itemized deductions
Best Suited For:

Home loan borrowers and tenants paying high rent with total deductions exceeding ₹4.5 Lakh to ₹5 Lakh

Key Advantages
  • Allows Section 80C (₹1.5L), 80D (₹25k-₹100k), 80CCD(1B) (₹50k)
  • Allows HRA exemption and Section 24(b) Home Loan Interest (₹2L)
  • Allows Section 80E (Education loan interest) without upper limit
Drawbacks & Risks
  • Higher tax rates (20% above ₹5L, 30% above ₹10L)
  • Requires extensive investment proof submissions and documentation
Calculate Old Tax Regime

The Ankiva One Verdict & Action Plan

Under AY 2026-27 rules, the New Tax Regime provides unmatched tax savings with zero tax up to ₹12.75 Lakh for salaried employees. Choose the Old Regime only if your combined deductions (80C, 80D, HRA, home loan interest) exceed ₹4.5 Lakh to ₹5 Lakh.

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