Old vs New Tax Regime for Rs. 20 Lakh Income
FY $2026-27 comparison - Which regime saves you more tax?
New Regime Tax
Rs. 1.92 lakh
Std ded Rs. 75k + 87A rebate
Better for youOld Regime Tax
Rs. 2.34 lakh
With typical Rs. 5.75 lakh deductions
Annual saving
Rs. 41,600
by choosing New Regime
Typical deductions assumed for old regime
Old regime wins if deductions exceed Rs. 4.5 lakh (home loan + HRA + 80C)
Customize with your actual deductions
₹20.00 L
Old regime deductions (irrelevant in new regime)
New Regime
Better for you₹1.92 L
Effective rate: 9.62%
Old Regime
₹3.21 L
Effective rate: 16.07%
New Regime saves you ₹1.29 L in taxes
Your deductions are not large enough to offset the new regime's lower slab rates and higher standard deduction.
FAQs - Rs. 20 Lakh Tax Regime
Which tax regime is better for Rs. 20 Lakh salary in FY 2026-27?▾
For Rs. 20 Lakh gross income in FY 2026-27: New regime tax = Rs. 1.92 lakh (with Rs. 75,000 standard deduction and 87A rebate if applicable). Old regime tax = Rs. 2.34 lakh (with typical deductions of Rs. 5.75 lakh including 80C + HRA + 80D). New regime saves Rs. 41,600. At Rs. 20L, a home loan changes the math significantly. Without home loan interest, new regime typically wins. With max deductions (Rs. 5L+), old regime can save Rs. 40-60k.
What deductions are needed for old regime to beat new regime at Rs. 20 Lakh?▾
Old regime wins if deductions exceed Rs. 4.5 lakh (home loan + HRA + 80C)
What is the income tax on Rs. 20 Lakh in new regime?▾
New regime tax on Rs. 20 Lakh gross income (FY 2026-27): Standard deduction Rs. 75,000 reduces taxable income to Rs. 19.25 lakh. Tax calculated on progressive slabs (0%/5%/10%/15%/20%/25%/30% in Rs. 4 lakh brackets). 87A rebate of Rs. 60,000 applies if taxable income is Rs. 12 lakh or less. 4% health and education cess on final tax. Total tax payable: Rs. 1.92 lakh.