Basic Details

Income Details

Annual gross salary — the standard deduction (₹75,000 new regime / ₹50,000 old regime) is applied automatically
Interest from savings, FD, etc.
Annual rental income (after deductions)
Short-term gains u/s 111A — taxed flat at 20%, outside the slab
Long-term gains u/s 112A — first ₹1.25 lakh exempt, 12.5% above that
Gains taxed at your slab rate (e.g. short-term gains on property or unlisted assets)
Any other taxable income

Deductions & Exemptions (Old Regime)

PPF, ELSS, LIC, etc. (Max: ₹1.5 Lakh)
Health insurance premiums
Additional NPS contribution (Max: ₹50,000)
Section 24 (Max: ₹2 Lakh)
80E, 80G, 80TTA, etc.

How Income Tax Works in FY 2026-27

India taxes individuals under two regimes, and you choose one each year. The new regime is the default. It uses the slabs introduced by Budget 2025 and carried forward unchanged by Budget 2026: no tax up to ₹4 lakh, then 5%, 10%, 15%, 20% and 25% across ₹4-lakh bands, and 30% above ₹24 lakh. A rebate under Section 87A of up to ₹60,000 means taxable income up to ₹12 lakh pays zero tax. For salaried people, the ₹75,000 standard deduction stretches that to a ₹12.75 lakh salary.

The old regime is optional. It keeps the historic slabs: nil up to ₹2.5 lakh, 5% up to ₹5 lakh, 20% up to ₹10 lakh, and 30% beyond. In exchange, it allows the full menu of deductions, including 80C up to ₹1.5 lakh, 80D for health insurance, ₹50,000 extra for NPS under 80CCD(1B), up to ₹2 lakh of home-loan interest, and HRA.

Worked Examples for the New Regime

Three examples show how the pieces fit together. A ₹12.75 lakh salary, minus the ₹75,000 standard deduction, leaves ₹12 lakh taxable. The slab tax of ₹60,000 is fully cancelled by the rebate, so the tax is zero. A ₹12.85 lakh salary leaves ₹12.10 lakh taxable, which is ₹10,000 over the rebate line. Marginal relief caps the tax at that excess, so you pay ₹10,000 plus cess, or ₹10,400, instead of the ₹63,960 the slabs alone would demand. And a ₹25 lakh salary leaves ₹24.25 lakh taxable, giving a slab tax of ₹3,07,500 plus ₹12,300 cess, a total of ₹3,19,800.

Which Regime Should You Choose?

The fewer deductions you actually claim, the more the new regime wins. Up to ₹12 lakh of taxable income it is almost always better, since the tax is zero. The old-versus-new regime decision can still tip the other way for people who claim large HRA, 80C and home-loan interest together. As a rule of thumb at higher incomes, you need roughly ₹4.5 to 5 lakh of combined deductions before the old regime beats the new one, and few taxpayers clear that bar without both HRA and a home loan. This calculator shows both regimes side by side, so you do not have to guess.

What Else Applies on Top?

Above ₹50 lakh of income, a surcharge applies: 10% rising to 37% in the old regime, capped at 25% in the new. Everyone pays a 4% Health and Education Cess on the tax plus surcharge. One more change worth knowing: from 1 April 2026, the new Income-tax Act, 2025 replaces the 1961 Act. It renumbers sections, so 80C becomes Section 123, but it changes no rates or slabs.

Capital Gains Are Taxed at Their Own Rates

Gains from selling listed shares or equity mutual funds do not go into the slabs at all. Short-term gains (held one year or less) are taxed flat at 20% under Section 111A. Long-term gains get a ₹1.25 lakh yearly exemption, and the portion above it is taxed at 12.5% under Section 112A. The Section 87A rebate never applies to these — so a salary that would be tax-free on its own can still leave tax payable on the gains, and gains that push your total income past ₹12 lakh can cost you the rebate on your salary too. This calculator has separate fields for short-term and long-term equity gains and applies these rules automatically, including the rule that lets residents set an unused basic exemption against the gains. Gains taxed at slab rates, such as short-term gains on property or unlisted shares, go in the "Other Capital Gains" field.

This calculator covers salary, interest, rent and listed-equity capital gains. Property sales with indexation, reinvestment exemptions under Sections 54 and 54F, lottery winnings and other complex situations need professional advice. Please consult a chartered accountant for your actual filing.

FAQs about Income Tax Calculator

Yes, under the new regime: the Section 87A rebate (up to ₹60,000) wipes out the slab tax on taxable income up to ₹12 lakh. Salaried taxpayers effectively reach ₹12.75 lakh after the ₹75,000 standard deduction. Marginal relief protects incomes just above the threshold from a tax cliff.
It depends on your deductions. With few deductions, the new regime usually wins outright. If you claim large HRA, 80C, 80D and home-loan interest together, the old regime can still be better at higher incomes. Calculate both and compare — this tool shows the side-by-side result.
For FY 2026-27: ₹75,000 in the new regime and ₹50,000 in the old regime, available to salaried employees and pensioners. This calculator applies it automatically to salary income.
No. The Act, effective 1 April 2026, reorganises and renumbers the law (536 sections instead of 819) but keeps rates, slabs, rebates and deductions exactly as they were — 80C simply becomes Section 123.
Just above ₹12 lakh taxable (new regime), your tax is capped at the amount by which income exceeds ₹12 lakh, so earning slightly more never leaves you worse off after tax. Example: at ₹12.10 lakh taxable, tax is ₹10,000 (+cess), not the ₹61,500 the slabs alone would give.
Not to special-rate income: gains taxed at fixed rates (like equity LTCG at 12.5% or STCG at 20%) sit outside the rebate. The rebate wipes out slab-rate tax only, so a ₹11 lakh salary plus large equity gains can still owe tax on the gains. Watch the trap too: gains that push your TOTAL income past ₹12 lakh cost you the rebate on your slab income as well.
Use the two dedicated fields for listed equity and equity mutual funds: short-term gains (STCG u/s 111A, taxed flat at 20%) and long-term gains (LTCG u/s 112A, 12.5% above the ₹1.25 lakh yearly exemption). Gains taxed at your slab rate — like short-term gains on property or unlisted shares — go in "Other Capital Gains". The calculator applies the exemption, the resident basic-exemption offset and the rebate rules automatically.