Period check: AY 2026–27 concerns FY 2025–26 under the 1961 Act. Tax Year 2026–27 concerns April 2026–March 2027 under the 2025 Act. Familiar old section names below are explanatory labels, not current filing references.
Begin with the current provision
Old section labels are useful for understanding earlier records, but a declaration for Tax Year 2026–27 should refer to the 2025 Act. The Department gives the investment-basket example of Schedule XV read with section 123. Use its official comparison utilities for other mappings rather than assuming section numbers were retained.
Build a deduction evidence sheet
| Field | What to retain |
|---|---|
| Income period and regime | Dates and payroll declaration |
| Eligible payment | Receipt and person to whom it relates |
| Provision and limit | Current reference, cap and conditions |
| Amount already used | PF or another payment sharing a limit |
Do not claim every basket under every regime
Many familiar old-regime deductions are unavailable in the ordinary new regime. Some specific deductions, including eligible employer retirement contributions in defined circumstances, may remain. Avoid the blanket statement that every deduction is unavailable or that employee investments automatically reduce new-regime salary tax.
Separate exemptions from deductions
HRA exemption, standard deduction, professional tax and specified investment deductions have different bases. Do not combine rent paid, total HRA, insurance premiums and employer PF into a single unrestricted deduction figure. Confirm each component before comparing regimes.
Use a comparison within its scope
The salary and TDS calculator covers resident ordinary salary with entered eligible old-regime deductions. It excludes special-rate income and employer NPS computation. Complex income needs a fuller calculation. There is no single universal deductions threshold that guarantees the old regime is better.
Official sources and scope
Source review: 2026-10-08. Check the relevant notification and your own records before filing or settling an entitlement.