New vs Old Tax Regime: What CFOs Should Consider in AY 2026-27

The default has changed

With the new tax regime now the default, leadership teams need to revisit assumptions baked into payroll structuring and employee communication from prior years.

What to reassess

Review how deductions and exemptions interact with your current salary structures, and model the impact across employee bands rather than assuming a single outcome for everyone.

Payroll and communication

Finance and HR should align early so that employees can make informed regime elections, and so payroll systems reflect the right defaults from the first pay cycle.

Bottom line

There is no universally better regime — the right answer depends on structure and individual circumstances. A short modelling exercise now avoids mid-year corrections.