Old vs New Tax Regime for Tax Year 2026-27:

A concise comparison of the Old and New Tax Regimes for FY 2026-27, highlighting key differences in deductions, exemptions, and overall tax benefits to help you choose the most suitable option.

Income Tax Regime Comparison 2026-27

CA Deepak Gupta

Apr 17, 2026

Last update on Apr 17, 2026

Old vs New Tax Regime for Tax Year 2026-27

Old vs New Tax Regime (TY 2026–27)
Particulars	Old Tax Regime	New Tax Regime
Income level for rebate eligibility	Rs 5 lakhs	Rs 12 lakhs
Standard Deduction	Rs. 50,000	Rs 75,000
Effective Tax-Free Salary income	Rs 5.5 lakhs	Rs 12.75 lakhs
Rebate u/s 87A	Rs. 12,500	Rs 60,000
HRA Exemption	Allowed	Not Allowed
Leave Travel Allowance (LTA)	Allowed	Not Allowed
Other allowances, including food allowance of Rs 200/meal, subject to 2 meals a day (Sodexo)	Allowed	Allowed
Entertainment Allowance and Professional Tax	Allowed	Not Allowed
Perquisites for official purposes (Car Lease)	Allowed	Allowed
Interest on Home Loan u/s 24b on: Self-occupied or vacant property	Allowed	Not Allowed
Interest on Home Loan u/s 24b on: Let-out property	Allowed	Allowed
Deduction u/s 80C (EPF, LIC, ELSS, PPF, FD, Children's tuition fee etc)	Allowed	Not Allowed
Employee's (own) contribution to NPS u/s 80CCD(1B)	Allowed	Not Allowed
Employer's contribution to NPS u/s 80CCD(2)	Allowed	Allowed
Medical insurance premium - 80D	Allowed	Not Allowed
Disabled Individual - 80U	Allowed	Not Allowed
Interest on education loan - 80E	Allowed	Not Allowed
Interest on Electric vehicle loan - 80EEB	Allowed	Not Allowed
Donation to Political party/trust etc - 80G	Allowed	Not Allowed
Savings Bank Interest u/s 80TTA and 80TTB	Allowed	Not Allowed
Other Chapter VI-A deductions	Allowed	Not Allowed
All contributions to Agniveer Corpus Fund - 80CCH	Allowed	Allowed
Deduction on Family Pension Income	Allowed	Allowed
Gifts upto Rs 50,000	Allowed	Allowed
Exemption on voluntary retirement 10(10C)	Allowed	Allowed
Exemption on gratuity u/s 10(10)	Allowed	Allowed
Exemption on Leave encashment u/s 10(10AA)	Allowed	Allowed
Daily Allowance	Allowed	Allowed
Conveyance Allowance	Allowed	Allowed
Transport Allowance for a specially-abled person	Allowed	Allowed

About Author

CA Deepak Gupta

Co Founder

CA Deepak Gupta,is Co-founder of Studycafe. He is Microsoft Office Specialist and Corporate Trainer of AI Tools, Microsoft Excel. He is Finance Influencer having more than 250K followers on Social Media. CA Deepak Gupta, is Having more than 14 plus years of experience, and he has Worked with best brands Like, Hero, Wipro, Ericsson before Starting Studycafe. He has Trained more than 20000 Persons in Microsoft Excel, PowerPoint, Power BI, Google Sheet, Google Forms and Other Tools.