INCOME TAX CALCULATOR 2026: COMPARE YOUR INCOME TAX LIABILITY ON RS 15L, RS 20L, RS 30L AND RS 50L CTC UNDER NEW VS OLD TAX REGIME

The new Income Tax Rules, 2026 have brought a bunch of benefits for salaried employees, including four additional cities now qualifying for a higher HRA tax benefit, a boost in tax benefits for meal cards (Sodexxo, Pluxxe, Zaggle), an increase in children’s education allowance (for those sticking to the old tax regime), and more. These rules kick in on April 1, 2026 and have to be read with Income Tax Act, 2025.

These new tax rules, 2026 are applicable for Tax Year 2026-27 which is not the same as AY 2026-27. For Tax Year 2026-2027 you will file your ITR on or before July 31, 2027 (students, pensioners, salaried, non tax audit cases).

Some of the benefits for salaried employees under Income Tax Rules, 2026 are:

• Motor car perquisite (company vehicle)
• Interest-free or concessional loans to employees
• Meal and refreshment benefits
• Children’s education and hostel allowances
• More House Rent Allowance (HRA) benefit for new cities (Hyderabad, Pune, Ahmedabad and Bengaluru)
• More tax benefits for gifts / festival vouchers

With the introduction of the Income-tax Rules, 2026, the taxation of salary income has become more structure-driven rather than rate-driven. While tax slabs remain unchanged, the expansion of HRA benefits, higher exemption limits for allowances, and revised perquisite rules can significantly reduce taxable income when salary components are optimally structured.

• Breakup of Salary:

Particulars	CTC - 15 Lakh	CTC - 20 Lakh	CTC - 25 Lakh	CTC - 30 Lakh	CTC - 50 Lakh
Annual Salary	15,00,000	20,00,000	25,00,000	30,00,000	50,00,000
Basic Salary	5,62,500	7,50,000	9,37,500	11,25,000	18,75,000
Dearness Allowance	1,87,500	2,50,000	3,12,500	3,75,000	6,25,000
House Rent Allowance(HRA) received	3,90,000	5,20,000	6,50,000	7,80,000	11,00,000
Actual Rent Paid	3,75,000	5,00,000	5,00,000	6,30,000	16,00,000

• Calculation for HRA:

Particulars	CTC - 15 Lakhs	CTC - 20 Lakhs	CTC - 25 Lakhs	CTC -30 Lakhs	CTC - 50 Lakhs
Salary for the purpose of HRA	7,50,000	10,00,000	12,50,000	15,00,000	25,00,000
1. Actual HRA received	3,90,000	5,20,000	6,50,000	7,80,000	11,00,000
2. Rent paid – 10% of salary	3,00,000	4,00,000	3,75,000	4,80,000	13,50,000
3. 50% of salary	3,75,000	5,00,000	6,25,000	7,50,000	12,50,000
HRA Deduction	3,00,000	4,00,000	3,75,000	4,80,000	11,00,000

The below illustration provides an indicative comparison of tax liability across income levels:

Particulars	CTC - 15 Lakh	CTC - 20 Lakh
Old Tax Regime	New Tax Regime	Old Tax Regime	New Tax Regime
Basic Salary	5,62,500	5,62,500	7,50,000	7,50,000
Dearness Allowance	1,87,500	1,87,500	2,50,000	2,50,000
Other Salary Components	7,50,000	7,50,000	10,00,000	10,00,000
Gross pay	15,00,000	15,00,000	20,00,000	20,00,000
Less: Standard deduction	50,000	75,000	50,000	75,000
Less: HRA exemption	3,00,000	-	4,00,000	-
Less: Food coupons	1,05,600	1,05,600	1,05,600	1,05,600
Less: Children Education Allowance	72,000	-	72,000	-
Less: Hostel Expenditure Allowance	2,16,000	-	2,16,000	-
Taxable salary	7,56,400	13,19,400	11,56,400	18,19,400
Less: Deduction u/s 80C	1,50,000	-	1,50,000	-
Less: Deduction u/s 80CCD(2) - Employer's NPS Contribution	75,000	1,05,000	1,00,000	1,40,000
Less: Deduction u/s 80CCD(1B) - NPS	50,000	-	50,000	-
Less: Deduction u/s 80D Health insurance	50,000	-	50,000	-
Net taxable salary	4,31,400	12,14,400	8,06,400	16,79,400
Total Tax Liability	-	14,980	76,730	1,41,320

Source: CA Suresh Surana

• CTC- 25, 30, 50

Particulars	CTC - 25 Lakh	CTC -30 Lakh	CTC - 50 Lakh
Old Tax Regime	New Tax Regime	Old Tax Regime	New Regime	Old Regime	New Regime
Basic Salary	9,37,500	9,37,500	11,25,000	11,25,000	18,75,000	18,75,000
Dearness Allowance	3,12,500	3,12,500	3,75,000	3,75,000	6,25,000	6,25,000
Other Salary Components	12,50,000	12,50,000	15,00,000	15,00,000	25,00,000	25,00,000
Gross pay	25,00,000	25,00,000	30,00,000	30,00,000	50,00,000	50,00,000
Less: Standard deduction	50,000	75,000	50,000	75,000	50,000	75,000
Less: HRA exemption	3,75,000	-	4,80,000	-	11,00,000	-
Less: Food coupons	1,05,600	1,05,600	1,05,600	1,05,600	1,05,600	1,05,600
Less: Children Education Allowance	72,000	-	72,000	-	72,000	-
Less: Hostel Expenditure Allowance	2,16,000	-	2,16,000	-	2,16,000	-
Taxable salary	16,81,400	23,19,400	20,76,400	28,19,400	34,56,400	48,19,400
Less: Deduction u/s 80C	1,50,000	-	1,50,000	-	1,50,000	-
Less: Deduction u/s 80CCD(2) - Employer's NPS Contribution	1,25,000	1,75,000	1,50,000	2,10,000	2,50,000	3,50,000
Less: Deduction u/s 80CCD(1B) - NPS	50,000	-	50,000	-	50,000	-
Less: Deduction u/s 80D Health insurance	50,000	-	50,000	-	50,000	-
Net taxable salary	13,06,400	21,44,400	16,76,400	26,09,400	29,56,400	44,69,400
Total Tax Liability	2,12,600	2,45,540	3,28,040	3,77,330	7,27,400	9,57,650

Source: CA Suresh Surana

Apart from the above prominent changes, is there any other change in tax rules 2026 for individuals?

According to Surana, apart from the major changes, the Income-tax Rules, 2026 introduce several additional amendments that are relevant for individual taxpayers:

• Expanded scope of simplified return filing (Rule 164): The eligibility for filing ITR-1 and ITR-4 has been broadened to include individuals owning up to two house properties, compared to the earlier restriction of one house property. This is expected to enable a larger number of taxpayers to opt for simplified return forms.
• Restriction on filing of ITR-4 in certain cases (Rule 164): A new condition has been introduced whereby taxpayers cannot file ITR-4 if they claim deductions under the head ‘Income from Other Sources’ under Section 93, except for family pension deduction. This brings in a targeted filter to ensure that only taxpayers with relatively simple income structures use this form.
• Rationalisation of Leave Travel Concession (LTC) Rules (Rule 278): The earlier restriction limiting LTC exemption to economy class airfare has been removed. Taxpayers can now claim exemption based on the class of travel they are entitled to, providing greater flexibility. Additionally, where no recognised public transport system exists, the earlier benchmark of air-conditioned first-class rail fare has been replaced with a standardised limit of Rs. 30 per kilometre (shortest route), enhancing clarity and uniformity.