Tax regime guide
New vs old tax regime take-home (FY 2026–27)
Choosing new vs old tax regime changes your take-home salary, not your CTC. For most salaried people with few deductions, the new regime pays more in-hand in Tax Year 2026–27. Old regime can still win if you claim meaningful HRA, 80C, 80D, home-loan interest, and similar deductions.
Compare on your CTC Try old regime (Advanced)
Quick difference
- New regime: higher slab thresholds, ₹75,000 standard deduction for salaried people, fewer chapter-VIA deductions. Section 87A can wipe tax if taxable income is ₹12 lakh or less (~₹12.75 lakh gross salary after typical CTC haircuts).
- Old regime: lower slabs, but HRA exemption, 80C (up to ₹1.5 lakh), 80D, home-loan interest under 24(b), NPS 80CCD(1B), and more can shrink taxable income.
Sample monthly in-hand (same CTC, both regimes)
Assumptions: 40% basic, EPF capped at ₹1,800 / month, Maharashtra professional tax, no HRA / 80C extras / NPS / home loan. Numbers are estimates only.
| CTC | New regime / mo | Old regime / mo | Better here |
|---|---|---|---|
| 6 LPA | ₹45,230 | ₹45,230 | Same |
| 8 LPA | ₹61,576 | ₹57,218 | New (+₹4,358) |
| 10 LPA | ₹77,922 | ₹70,164 | New (+₹7,758) |
| 12 LPA | ₹94,268 | ₹82,406 | New (+₹11,862) |
| 15 LPA | ₹1,11,318 | ₹99,275 | New (+₹12,043) |
| 18 LPA | ₹1,31,714 | ₹1,16,144 | New (+₹15,570) |
| 20 LPA | ₹1,44,660 | ₹1,27,390 | New (+₹17,270) |
| 25 LPA | ₹1,75,485 | ₹1,55,506 | New (+₹19,979) |
When old regime can win
On a plain CTC (no extra claims), new usually wins above ~6–7 LPA in these samples. Old regime catches up when deductions are large.
Example on 15 LPA with Advanced inputs roughly like: metro HRA + ₹3 lakh rent, extra 80C, ₹50k 80D, ₹2 lakh home-loan interest, ₹50k NPS self — old regime can land near ₹1,13,600 / month vs about ₹1,11,300 on new in that sample. Your mix will differ; always compare both on the calculator.
How to decide on an offer
- Enter the offer CTC and basic %.
- Toggle new vs old on Basic mode for a first pass.
- Switch to Advanced, add rent / HRA, 80C–80G, NPS, and home loan if you have them.
- Pick the regime with higher monthly in-hand for your facts.
Start with 12 LPA (new) Start with 15 LPA (old + Advanced)
Related guides
- CTC vs in-hand salary in India (FY 2026–27)
- 12 LPA in-hand salary · 15 LPA · 20 LPA
- Free India CTC to in-hand salary calculator
Educational estimate only — not tax, payroll, or legal advice. Regime choice and actual TDS depend on your employer and claims. Full disclaimer.