Old vs. New Tax Regime: Which is Better for a ₹25 Lakh Salary in AY 2026-27 ?

Choosing between the Old and New Tax Regimes can feel like trying to solve a complex puzzle. With the filing season for Assessment Year (AY) 2026-27 (Financial Year 2025-26) underway, making the right choice can save you thousands of rupees.

At TaxGullak, we make tax compliance stress-free. Let’s break down the slabs and look at a real-world comparison for a salaried professional earning ₹25,00,000 per annum.

The TaxGullak Insight: The "Breakeven" Point

For a gross salary of ₹25 Lakhs, your breakeven deduction point is ₹4,83,333.

The Verdict: If your total deductions (80C, 80D, HRA, Home Loan Interest, etc.) under the Old Regime are less than ₹4.83 Lakhs, the New Tax Regime is mathematically better for you.

Since securing nearly ₹5 Lakhs in tax exemptions is highly difficult for most salaried professionals, the New Tax Regime is the clear winner for most high earners in AY 2026-27.