Working ledger 02 · Income Tax Rules 2026

Old vs New Regime Tax Calculator

Find out which regime saves you more under the updated 2026 rules. FY 2026-27. Notified March 20, 2026.

Your Income

Annual Gross Salary (CTC)

Total cost to company before any deductions

₹30,00,000 (30 lakhs)

Basic Pay (% of CTC)

Typically 40% to 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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