Start with taxable income, not gross income
- Salary or pension should first be reduced by the eligible standard deduction before slab and 87A checks.
- Compare old regime only after adding real deductions: HRA, 80C, 80D, home-loan interest, NPS and other eligible claims.
- Separate special-rate income such as equity STCG, LTCG, VDA and dividends before assuming section 87A wipes out the tax.
- For business/professional income, regime switching has restrictions and Form 10-IEA matters.
Common benefits still relevant
- Standard deduction for salary/pension as per AY 2026-27 rules.
- Employer NPS contribution under section 80CCD(2), subject to limits.
- Family pension deduction under section 57(iia), where applicable.
- Let-out house-property interest is handled differently from self-occupied property; model it carefully.
Old-regime advantages
- HRA exemption, if rent and salary structure support the claim.
- Section 80C investments and home-loan principal within the overall limit.
- Section 80D health insurance deduction.
- Self-occupied home-loan interest under section 24(b), subject to limits.
- NPS employee contribution under section 80CCD(1B).
Applicable year and source discipline
Last fact-checked: 25 May 2026.
AY 2026-27 means FY 2025-26 income and is still filed under the Income-tax Act, 1961 using forms/instructions for that assessment year. Tax Year 2026-27 means FY 2026-27 income under the Income Tax Act, 2025. The two should not be mixed.
Where this page discusses a new form, rate, portal label or transition item, treat it as usable only when supported by the live e-filing portal, a CBDT notification, the Income Tax Department guidance page, the supplied Act PDF, or ICAI material.
What a serious tax expert should verify
- Financial year, assessment year or tax year being handled.
- Residential status, age category, taxpayer type and whether business/professional income exists.
- Correct ITR form, utility validation rules and schedule requirements.
- AIS, TIS, Form 26AS, Form 16/Form 16A, TDS/TCS credits and advance-tax challans.
- Special-rate income such as section 111A, 112, 112A or VDA before applying section 87A rebate.
- Whether a claim is notified law, portal functionality, a draft/proposal, or a competitor summary.
FAQs
Which year should I use for Old vs New Tax Regime?
Use AY 2026-27 for FY 2025-26 income under the Income-tax Act, 1961. Use Tax Year 2026-27 for FY 2026-27 income under the Income Tax Act, 2025.
What documents should I share with a tax expert?
Share the portal screenshot, exact year, income breakup, certificates, AIS/Form 26AS, notices, challans and any computation already prepared.
Can WorkIndex help me find a specialist?
Yes. Post a requirement with the legal year, records and deadline so experts can quote on the real issue instead of a generic page title.