Income Tax Rules 2026 · Notified March 20, 2026

Old vs New Regime
Tax Calculator

Find out which regime saves you more under the updated 2026 rules. FY 2026–27.

Your Income

Annual Gross Salary (CTC)

Total cost to company before any deductions

₹30,00,000 (30 lakhs)

Basic Pay (% of CTC)

Typically 40–50%. New labour codes require wages ≥ 50%.

Basic = ₹15,00,000 (15 lakhs) · Monthly ₹1,25,000

City of Residence

House Rent Allowance (HRA)

Monthly Rent Paid

Enter ₹0 if you own your home or don't pay rent

Annual rent = ₹9,00,000 (9 lakhs)

Your HRA exemption (annual)₹7,50,000 (7.50 lakhs)

Least of: HRA received, rent − 10% salary, 50%/40% of salary. Old regime only.

Salary Exemptions (Old Regime)

Children (max 2)

Education: ₹3,000/month/child (was ₹100)

₹72,000/yr

Children in hostel

Hostel: ₹9,000/month/child (was ₹300)

₹2,16,000/yr

Meal vouchers

₹200/meal × 2 meals × 22 days = ₹8,800/mo. Old regime only.

₹1,05,600/yr

Festival gifts

Tax-free up to ₹15,000/year (was ₹5,000)

₹15,000/yr

Deductions (Old Regime)

80C — EPF + PPF + ELSS + LIC

Max ₹1,50,000

Max limit

80CCD(1B) — NPS self contribution

Max ₹50,000 (over and above 80C)

Max limit

80CCD(2) — NPS employer contribution

Up to 14% of basic. Works in BOTH regimes.

₹1,50,000 (1.50 lakhs)

80D — Health insurance

Self ₹25k + Parents ₹25k (₹50k if senior)

₹50,000 (50 thousand)

Sec 24b — Home loan interest

Max ₹2,00,000 (self-occupied)

80E — Education loan interest

No cap, up to 8 years

80TTA — Savings account interest

Max ₹10,000

₹5,000 (5 thousand)

80CCD(2) employer NPS is one of the few deductions that works in the new regime too. It's deducted from taxable income in both regimes.

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