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Which regime actually costs you less?

Run both regimes through the latest slabs with your real deductions. See exactly which one saves you more — numbers for your income, not a generic example.

Your numbers

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Old regime deductions (ignored under new regime)

max ₹1,50,000
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max ₹50,000
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Old Regime

Gross income₹30,00,000
Business income (after 44ADA)₹15,00,000
Deductions₹1,75,000
Taxable income₹13,25,000
Slab tax₹2,10,000
Health & Education cess (4%)₹8,400
Total tax₹2,18,400
Tax to pay₹2,18,400

New Regime

Winner
Gross income₹30,00,000
Business income (after 44ADA)₹15,00,000
Deductions₹0
Taxable income₹15,00,000
Slab tax₹1,05,000
Health & Education cess (4%)₹4,200
Total tax₹1,09,200
Tax to pay₹1,09,200

Breakeven curve — FY 2026-27

Both regimes give the same tax at gross income around ₹3,00,000. Below that, the new regime wins for your inputs; above it, old.

Old regime uses your entered 80C + 80D + HRA + other deductions, plus the ₹50,000 standard deduction if you also earn salary. New regime applies only the ₹75,000 standard deduction, and only with salary income. 50 sample points from ₹3L to ₹50L gross.

With 44ADA, only 50% of your ₹30,00,000 gross (₹15,00,000) is taxable — this alone saves you around ₹3,90,000 vs treating all income as taxable.
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My tax position, FY 2026-27

Both regimes on the same income, with the slab, rebate, surcharge and cess working shown side by side — a one-pager you can forward to your CA as-is, instead of retyping your numbers into an email.

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Worked example

Freelancer earning ₹15L gross — old vs new regime, with 80C + 80D

New regime (FY 2026-27): 44ADA taxable = ₹15L × 50% = ₹7.5L. Slab: 0-4L @0%, 4L-7.5L @5% = ₹17,500. 87A rebate applies (₹7.5L < ₹12L) → total tax ₹0.

Old regime (same freelancer, 80C ₹1.5L + 80D ₹25K): 44ADA taxable = ₹7.5L. Deductions: ₹1.5L + ₹25K = ₹1.75L. Taxable after deductions = ₹7.5L − ₹1.75L = ₹5.75L. Slab: 0-2.5L @0%, 2.5-5L @5%=₹12,500, 5-5.75L @20%=₹15,000 → ₹27,500. 87A: taxable > ₹5L so no rebate. Add 4% cess → total ≈ ₹28,600.

Verdict: New regime wins by ₹28,600. The old-regime deductions (₹1.75L) are not large enough to offset the higher slab rates for this income level. The new regime beats old for most freelancers earning ₹5–25L with standard deductions.

When old regime wins: Total deductions above ~₹3.5L (home loan interest + max 80C + 80D + HRA) — typically relevant only for freelancers with a home loan and maximum investments simultaneously.

How this works

Old vs new, decided by your deductions.

Old or new tax regime — which is better for freelancers?
It depends on your deductions. New regime wins for most freelancers earning ₹5–25L with limited 80C/80D/HRA. Old regime wins when total deductions exceed ~₹3.5L (typical for those with a home loan + max 80C + 80D + HRA). The breakeven shifts with income — our tool computes it for your exact numbers.
Can I switch between old and new regime every year?
Salaried taxpayers can switch each FY. Freelancers and business owners can only switch once — if you opt out of the new regime (default since FY 2024-25), you can come back to it only once in your lifetime. Choose carefully.
Does 87A rebate apply in both regimes?
Yes, but the threshold differs. New regime: ₹60,000 rebate if taxable income ≤ ₹12L (effectively zero tax up to ₹12L). Old regime: ₹12,500 rebate if taxable income ≤ ₹5L.
What's the standard deduction in old vs new regime?
New regime offers ₹75,000 standard deduction for salaried + pensioners (FY 2025-26 onwards). Old regime offers ₹50,000. For freelancers without salary income, standard deduction doesn't apply in either regime.
At what income does the old regime start beating the new regime?
It depends on your deductions. With ₹1.5L (80C max only) → new regime always wins below ₹50L. With ₹3L+ total (80C + 80D + HRA + home loan interest) → breakeven shifts to around ₹15–20L gross. The breakeven chart above plots both curves and marks the exact crossover for your inputs across FY 2025-26 and FY 2026-27.

Calculated per Finance Act 2025 (rates confirmed unchanged in Budget 2026). New regime is the default from FY 2024-25. Results are indicative; consult a CA for filing.

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