Which tax regime will be best for you after the budget? Answer will be given from break-even point

Way to save tax: Choose the right regime from the break-even point of Budget 2026

Many people were expecting that there would be a change in the tax slab or standard deduction in Budget 2026, but this did not happen. Therefore, the old tax rates and slabs will remain the same for the financial year 2026-27. After the introduction of Alternative Tax Regime, the government keeps making changes continuously so that the taxpayer can be attracted towards the simple tax system. As a result, a large number of people have already adapted to the new regime, while many are still wondering whether the change will be beneficial for them or not.

Now that Budget 2026 has been announced and both the tax regimes – old and new – are co-existing, it has become important for taxpayers to re-examine their choices. In this context, analysis of break-even point proves helpful. The break-even point is the level where the tax liability becomes equal in both the regimes. This tells you which regime to choose will be more beneficial for you.

The table below shows the break-even points of the old and new tax regimes based on different deductions. This approach helps in understanding which regime would be right for you as per your income and deductions. This way, taxpayers can decide as per their spending and savings plans whether it is beneficial to stay in the old regime or move to the new, simpler regime.

Table 1: People who are not eligible for any deduction

Table 2: Persons eligible for deduction under Section 123 of the Act 2025 (Section 80C of the 1961 Act)

Table 3: Taxpayer eligible for deduction under sections 123 and 126 of the 2025 Act (sections 80C and 80D of the 1961 Act)

Table 4: Taxpayer’s deduction under sections 123 and 126 and section 22(1)(b) of the 2025 Act [1961 अधिनियम की धारा 80सी, 80डी और 24(ख)] Is eligible for deduction of interest on housing loan under.