Income Tax Slabs 2026-27 — New vs Old Regime
| Income Range | New Regime | Old Regime |
|---|---|---|
| Up to ₹3,00,000 | Nil | Nil (up to ₹2.5L) |
| ₹3,00,001 – ₹7,00,000 | 5% | 5% (₹2.5L-₹5L) |
| ₹7,00,001 – ₹10,00,000 | 10% | 20% (₹5L-₹10L) |
| ₹10,00,001 – ₹12,00,000 | 15% | 30% (above ₹10L) |
| ₹12,00,001 – ₹15,00,000 | 20% | 30% |
| Above ₹15,00,000 | 30% | 30% |
New Regime: Standard deduction ₹75,000. No tax up to ₹12L income (with 87A rebate). Old Regime: Standard deduction ₹50,000. Multiple deductions available.
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Tax for IT Professionals — Delhi, Mumbai, Bangalore 2026
| City | Avg IT Salary | New Regime Tax | Old Regime (with deductions) | Recommended |
|---|---|---|---|---|
| Delhi NCR | ₹15 Lakh | ₹1,45,600 | ₹62,400 (with home loan) | Old Regime |
| Mumbai | ₹18 Lakh | ₹2,10,600 | ₹93,600 (with HRA + home loan) | Old Regime |
| Bangalore | ₹20 Lakh | ₹2,60,600 | ₹1,09,200 (with full deductions) | Old Regime |
All Tax Deductions Available — Quick Reference
| Section | Deduction | Max Limit | New Regime |
|---|---|---|---|
| 80C | PPF, ELSS, LIC, EPF | ₹1,50,000 | ❌ Not allowed |
| 80CCD(1B) | Additional NPS | ₹50,000 | ❌ Not allowed |
| 80D | Health Insurance | ₹25,000 + ₹50,000 | ❌ Not allowed |
| 24(b) | Home Loan Interest | ₹2,00,000 | ❌ Not allowed |
| HRA | House Rent Allowance | Actual or 50% Basic | ❌ Not allowed |
| Standard Deduction | Flat deduction | ₹75,000 (New) / ₹50,000 (Old) | ✅ ₹75,000 |
| 80CCD(2) | Employer NPS | 10% of salary | ✅ Allowed |
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Frequently Asked Questions
No tax on income up to how much in 2026? +
Under New Tax Regime 2026-27: No tax on income up to ₹12 lakh (after ₹75,000 standard deduction and 87A rebate). Under Old Regime: No tax up to ₹5 lakh income (after deductions and rebate). This means crores of middle-class salaried Indians pay zero income tax.
How to save maximum tax for ₹20 lakh salary? +
For ₹20 lakh salary: Invest ₹1.5L in 80C (PPF/ELSS), add ₹50K in NPS (80CCD 1B), buy health insurance ₹25K (80D), if home loan claim ₹2L interest (24b), claim HRA if renting. Total deductions: ₹4.25L+. Old regime tax becomes ₹1.09L vs New regime ₹2.6L — saving ₹1.5L.
What is Section 87A rebate in 2026? +
Section 87A provides full tax rebate if your net taxable income does not exceed ₹12 lakh (New Regime) or ₹5 lakh (Old Regime). This means if your income after deductions is ₹12L or less in new regime — zero income tax payable.
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📅 Last Updated: June 2026✅ RBI Verified⭐ 4.8/5