Tax Saving Last Updated: June 21, 2026
Old vs New Tax Regime 2026-27: Which is Better for You?
Budget 2026 has introduced significant changes to the New Tax Regime. Find out which one saves you more money.
The New Tax Regime Slabs for FY 2026-27
Union Budget 2026 has revised slabs to encourage more citizens to shift. Here are the updated tax bands:
- Up to ₹4,000,000: Nil tax
- ₹400,001 to ₹800,000: 5%
- ₹800,001 to ₹1,200,000: 10%
- Over ₹2,400,000: 30%
Deductions in Old Regime
The old regime continues to offer Section 80C deductions up to ₹1.5 lakh, Section 80D medical premium deductions, and HRA/Home Loan interest benefits.
Verified Sources & References
- Union Budget FY 2026-27 Tax Slabs and rules, Ministry of Finance, Government of India.
- Official circulars on interest rates, Reserve Bank of India (rbi.org.in).
- Income Tax Department notifications on rebates and exemptions (incometaxindia.gov.in).
- Mutual fund regulations and risk guidelines, Securities and Exchange Board of India (sebi.gov.in).
PG
Prasad Gorank
CFP (Certified Financial Planner) & Lead Editor
Prasad Gorank is the founder of PaisaBaat and a personal finance writer with 8+ years of experience in taxation, loan amortizations, and mutual funds advice. Every guide is double-checked for compliance with RBI and CBDT circulars.