A ₹20 lakh salary is not enough information to prescribe the old or new tax regime. Compare both using income and eligible deductions that apply for the same period.
Calculator period
The current NiyamFin comparison is explicitly for FY 2025-26 / AY 2026-27. It applies the governed slabs, standard deductions, rebate logic and 4% cess for that period. It is an educational estimate rather than a complete return computation.
Inputs that can change the result
- eligible HRA exemption calculated under the applicable rule;
- qualifying Section 80C payments within the combined cap;
- eligible Section 80D and Section 80CCD amounts;
- house-property treatment, including applicable Section 24(b) rules; and
- special-rate income or adjustments omitted from a simple salary model.
Do not assume a maximum deduction merely because a statutory cap exists. Do not purchase an investment, insurance policy or loan solely to change the comparison.
Two employees earning ₹20 lakh may obtain different answers because their eligible facts differ. Neither result establishes a general rule for everyone at that salary.
Common mistakes
- Publishing a universal breakeven number.
- Treating the full home-loan payment as deductible.
- Assuming all NPS contributions receive the same treatment.
- Treating lower payroll TDS as lower final tax.
- Mixing tax periods.
Use the New vs Old Tax Regime Calculator, then verify the applicable year and special circumstances.
Sources
- Income Tax Department: Salaried individuals, AY 2026-27
- Income Tax Department: New versus old tax regime FAQs
Educational information, not tax advice.