The new regime is the default. For FY 2026-27 it charges nothing on taxable income up to ₹12 lakh, thanks to the rebate, and its slabs rise to 30% above ₹24 lakh. The old regime allows deductions such as 80C, 80D, HRA and home loan interest. Salaried people can pick whichever costs less each year when filing their return.
Finance glossary
What is Old and new tax regime?
India's two income tax systems: the new regime with lower rates and few deductions, and the old regime with higher rates and many deductions.