taxation
Complete Guide to Section 115BAC New Tax Regime for Salaried Employees
Experienced Finance & Insurance Editorial Team✓ Verified Expert
Financial Specialist Published: Recent 5 min read
The Section 115BAC New Tax Regime offers lower tax rates across expanded income slabs for Indian taxpayers. However, choosing between the Old Tax Regime and the New Tax Regime requires careful calculation of your eligible deductions under Section 80C, 80D, HRA, and Home Loan interest under Section 24(b).
Key Highlights of the New Tax Regime: 1. **Standard Deduction**: Salaried employees receive a ₹75,000 standard deduction under the revised budget guidelines. 2. **Tax Slabs**: Zero tax liability for net taxable income up to ₹7 Lakhs under tax rebate Section 87A. 3. **Simplicity**: No need to maintain bulky proof receipts for HRA, LTA, or small investments if you opt for lower tax rates.
How to Calculate Your Tax Savings Use FinSetu's Income Tax Calculator to instantly compare your tax liability under both tax regimes side-by-side.
Interactive Tax Planning Tool
Income Tax Calculator (FY 2026-27 / AY 2027-28)
Compare your tax liability under Section 115BAC New Tax Regime vs Old Tax Regime with standard deduction & Section 87A rebate rules.
Transparent Methodology & Inputs
- Standard Deduction of ₹75,000 for salaried individuals under New Regime
- Tax Rebate Section 87A applies for net taxable income up to ₹7,000,000
- Calculations assume baseline individual tax rates without surcharge or cess variations
Limitation: Tax output is an educational estimate. Consult a verified CA for complex business income or foreign asset filings.Official Citation: Income Tax Department, Ministry of Finance, Govt of India
#Income Tax#115BAC#Section 80C#Tax Savings