Tax slabs FY27 unchanged: Experts on which tax regime saves you more now
New regime typically wins unless deductions are high enough to tilt the calculation toward old, says expert
 "Tax slabs FY27 unchanged: Experts on which tax regime saves you more now")
The Union Budget 2026 has left income tax slabs unchanged for FY 2026–27, but experts say the choice between the old and new tax regimes still materially affects how much tax individuals pay. The new regime remains the default, with lower rates but limited deductions, while the old regime continues to reward those with sizable exemptions and investments.
Who gains despite unchanged slabs?
Salaried taxpayers and middle-income earners stand to benefit most under the new regime structure, experts say.
Kunal Savani, partner at Cyril Amarchand Mangaldas, says a salaried employee opting for the new regime gets a standard deduction of Rs 75,000 along with rebate and marginal relief.
“Effectively, a salaried employee opting for new tax regime with a gross salary income of Rs 12.75 lakh has zero tax liability,” he explains.
B. Shravanth Shanker, managing partner at B. Shanker Advocates LLP, says middle-income salaried taxpayers benefit where deductions are limited. “The higher standard deduction and continued rebate effectively compress tax liability for those with limited exemptions,” he says.
Chandni Anandan, tax expert at ClearTax, adds that presumptive taxpayers can also gain. A professional using Section 44ADA with receipts of Rs 24 lakh may show taxable income of Rs 12 lakh and “claim the full rebate under the new regime, resulting in a nil tax liability”.
Old vs new: The working thumb rule
The break-even depends on how much you claim in deductions.
Hari Raheja, advocate at D M Harish & Co., says, “If your total deductions are below Rs 3 lakh, the new regime is beneficial. If your deductions exceed Rs 3.5–4 lakh, the old regime generally is beneficial.”
Shanker gives a similar range: at Rs 15 lakh income, the new regime works unless deductions exceed roughly Rs 3.5–4 lakh. At Rs 25 lakh, only those with “substantial, sustained deductions” usually gain from the old regime.
Mrinal Mehta, chartered accountant and joint secretary at Bombay Chartered Accountants’ Society, estimates the break-even around Rs 5.5 lakh of deductions for incomes between Rs 15–25 lakh, rising further at higher incomes.
Source: ClearTax
Common comparison mistakes
Experts warn that calculation errors distort regime selection:
· Overstating eligible deductions under Sections 80C and 80D
· Forgetting the Rs 75,000 standard deduction in the new regime
· Ignoring the Section 87A rebate impact near Rs 12 lakh
· Missing caps on home loan interest and HRA exemptions
Anandan notes many taxpayers delay regime comparison until filing time, losing planning flexibility. Running full-year calculations under both regimes using realistic deduction figures is the safest approach, experts say.