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It completely depends on your salary and deductions. New Regime is better if you have fewer deductions — it offers lower tax slabs and a ₹75,000 standard deduction. If your taxable income is under ₹12 lakhs, you pay zero tax under the New Regime due to Section 87A rebate.

Old Regime is better if you have significant deductions — home loan interest (₹2L), 80C investments (₹1.5L), HRA exemption, NPS (₹50K extra), and health insurance (₹25K). Use TaxWisely above to compare both instantly with your exact numbers.

The last date to file your Income Tax Return (ITR) for FY 2026-27 (Assessment Year 2027-28) is July 31, 2026 for salaried individuals.

Filing after this date attracts a late fee:
• ₹5,000 penalty if income is above ₹5 lakhs
• ₹1,000 penalty if income is ₹5 lakhs or below

You can still file a belated return up to December 31, 2026 with the penalty. TaxWisely shows you a live countdown to the July 31 deadline at the top of the calculator.

Under the New Regime, if your gross salary is up to ₹12,75,000 per year, you pay zero tax. Here's how:

• Gross Income: ₹12,75,000
• Standard Deduction: ₹75,000
• Taxable Income: ₹12,00,000
• Tax on ₹12L: ₹80,000
• Section 87A Rebate: ₹80,000
• Final Tax = ₹0

Under the Old Regime, you can pay zero tax with strategic investments in 80C (₹1.5L), NPS (₹50K), HRA, and home loan interest. Use TaxWisely's unlock tips section for a personalized plan.

A working couple can save significantly by planning together:

• HRA: Whoever earns more should claim HRA — higher income = bigger exemption
• 80C Split: Both can invest ₹1.5L each = ₹3L total deduction combined
• Joint Home Loan: Both can claim ₹2L each on interest = ₹4L total deduction
• NPS: Both can claim extra ₹50K each under 80CCD(1B)
• Different Regimes: One partner can choose New, other Old — whatever saves more individually

Use TaxWisely's Couple Tax Optimizer tab above to calculate your exact combined savings automatically.

The standard deduction for salaried employees in FY 2026-27 is:

• New Regime: ₹75,000 — automatically applied, no proof needed
• Old Regime: ₹50,000 — automatically applied, no proof needed

This deduction is available to all salaried individuals and pensioners. It was increased from ₹50,000 to ₹75,000 in the New Regime as part of Budget 2024. You don't need to submit any bills or receipts — it's a flat deduction from your gross salary before calculating tax.