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Old or new tax regime: which saves you more?

Built for bank pay: each quarter’s DA, the bank’s 14% NPS share and HRA are worked in. See both regimes side by side.

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  • Rules as on 12 November 2026 · DA 31.33%
1Your pay
Your stage in the 12th BPS pay scale, shown as “Basic” on your payslip.
Where you are posted (for HRA)
Officers’ HRA, with CCA of ₹2,300 or ₹1,900, or a ₹1,200 location allowance elsewhere. Clerical staff get HRA of 10.25% at every centre.
2Your salary for the year

Filled in from step 1 with each quarter’s DA. Change any figure to match your payslips.

All pay and allowances, including HRA.
DA on basic only.
14% of basic + DA.
Counts under 80C (old regime).
10% of basic + DA.
3Other income
Savings and FD interest, rent and so on.
Staff loan interest concession and other taxable perks (Form 16).
4Old regime claims

These count only in the old regime.

For HRA exemption.
City
LIC, PPF, ELSS, tuition fees, home loan principal. PF is added for you.
Your premium as allowed: ₹25,000; ₹50,000 more for senior-citizen parents.
Up to ₹2 lakh.
Up to ₹2,500.
80E, 80G, 80TTA and so on.

Working it out…

How this is worked out

Step 1 builds your salary for Tax Year 2026-27 (April 2026 to March 2027) month by month from the 12th BPS scale and each quarter’s DA: 25% in April, 25.70% for May to July, 27.83% for August to October and 31.33% from November, with any months IBA has not yet announced taken at today’s rate. You can change any figure.

New regime: salary plus the bank’s NPS share, less the ₹75,000 standard deduction and that NPS share (up to 14% of basic + DA). Old regime: less HRA exemption, LFC, the ₹50,000 standard deduction, professional tax, 80C (PF and investments, up to ₹1.5 lakh), own NPS under 80CCD(1B) (₹50,000), the bank’s NPS share up to 10%, 80D and home loan interest (₹2 lakh). Then slabs, the rebate with marginal relief, surcharge and 4% cess.

Questions bankers ask

What are the new regime slabs for Tax Year 2026-27?

Up to ₹4 lakh nil; ₹4 to 8 lakh 5%; ₹8 to 12 lakh 10%; ₹12 to 16 lakh 15%; ₹16 to 20 lakh 20%; ₹20 to 24 lakh 25%; above ₹24 lakh 30%. With the ₹75,000 standard deduction and the rebate, salary up to ₹12.75 lakh pays no tax. Budget 2026 kept these slabs unchanged.

How is the bank’s 14% NPS contribution taxed?

It is added to your salary and then deducted. In the new regime the whole 14% of basic + DA is deductible. In the old regime a non-government employer’s contribution is deductible only up to 10%, so the extra 4% is taxed. This often tips bankers towards the new regime.

Which cities get 50% HRA exemption now?

From 1 April 2026, under the Income-tax Rules, 2026: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. Elsewhere the limit is 40% of basic + DA. HRA exemption is available only in the old regime.

Why does the page work out my pay month by month?

Bank DA changes every quarter. For Tax Year 2026-27 it was 25% in April, 25.70% for May to July, 27.83% for August to October and 31.33% from November. Using each month’s rate gives a truer year’s salary than this month’s pay × 12.

Is the staff housing loan concession taxable?

Yes. The interest concession on staff loans is a taxable perquisite in both regimes; it appears in your Form 16. Enter it under “Perquisites”.

The sections have new numbers. Which do I use?

The Income-tax Act, 2025 applies from Tax Year 2026-27 with new section numbers, but the deductions and limits for salaried people are the same. We use the familiar names (80C, 80D, 80CCD(1B)) so you can match them to your declarations.

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Indicative figures for planning. They follow the 12th Bipartite Settlement and 9th Joint Note (8 March 2024), IBA’s DA circular of 2 November 2026 and the Income-tax Act, 2025, as on 12 November 2026. Your bank’s payslip, service regulations, circulars and Form 16 prevail. Bankers Pioneer Academy is independent; not affiliated with IBA, IIBF, the Reserve Bank of India or any bank. Nothing you type here leaves your device.