Income Tax Calculator AY 2026-27

How this calculator works

This tool computes income tax payable for an individual under the Indian Income Tax Act for Assessment Year 2026-27 (financial year 1 April 2025 to 31 March 2026). It runs the same computation under both the new regime (Section 115BAC, default since AY 2024-25) and the old regime, then shows the lower outcome and the rupee savings.

The calculation flow is: gross income → standard deduction (₹75,000 new / ₹50,000 old for salaried) → Chapter VI-A deductions (old regime only) → slab-wise tax → Section 87A rebate → surcharge (if income above ₹50 lakh) → 4% Health & Education Cess. The result is the final tax payable for the year.

New tax regime slabs (FY 2025-26)

Section 87A rebate under the new regime is up to ₹60,000 — taxable income up to ₹12 lakh effectively pays NIL tax. Standard deduction of ₹75,000 is available for salaried taxpayers and pensioners. Employer's contribution to NPS under Section 80CCD(2) (up to 14% of basic salary for government and private sector) is the only Chapter VI-A deduction available.

Old tax regime slabs (FY 2025-26)

For an individual below 60 years:

Senior citizens (60-79 years) get a higher basic exemption of ₹3,00,000 and super seniors (80+) get ₹5,00,000. Section 87A rebate is ₹12,500 — taxable income up to ₹5 lakh effectively pays NIL tax. Standard deduction is ₹50,000 for salaried taxpayers and pensioners. Full Chapter VI-A deductions are available: 80C up to ₹1.5 lakh, 80D for health insurance, 80E for education loan interest, 80G for donations, Section 24(b) home loan interest up to ₹2 lakh, HRA exemption, NPS contributions and more.

Which regime should you choose?

Because the new regime is now default, the question is really: do I have enough deductions under the old regime to justify opting out? The break-even depends heavily on your salary structure.

The old regime usually wins when you have substantial 80C savings (₹1.5 lakh in PPF/ELSS/insurance), a home loan with ₹2 lakh of Section 24(b) interest, NPS contributions, high HRA from renting in a metro, plus health insurance premium. A typical mid-career professional with a home loan, family health insurance and HRA can easily clear ₹4-5 lakh of deductions — at which point the old regime's 30% slab impact is offset.

The new regime usually wins when you are early in your career with limited investment, no home loan, modest HRA, or your salary structure has few exempt components. The lower slab rates plus the enhanced ₹75,000 standard deduction and ₹60,000 87A rebate produce a lower tax bill than the old regime with only token deductions.

Important — switching is restricted for business taxpayers. Salaried taxpayers can switch between regimes each year by filing Form 10-IEA before the due date for filing the ITR. Taxpayers with income from business or profession can opt out of the new regime only once in their lifetime — choose carefully.

Limitations of this calculator

This is a simplified individual-tax calculator. It does not compute:

• Capital gains tax (different rates apply for STCG/LTCG on equity, debt, real estate).
• Business or professional income with presumptive taxation under 44AD/44ADA/44AE.
• Tax on dividends, lottery, racehorses or other special-rate income.
• Marginal relief on surcharge for income just above ₹50 lakh, ₹1 cr, ₹2 cr, ₹5 cr thresholds.
• Alternate Minimum Tax (AMT) for non-corporate taxpayers claiming certain deductions.
• Foreign tax credit under DTAA.

For a complete computation that includes the above, talk to our team. We compute, file and follow up on your refund — and handle any notices that arise — typically from ₹999 for a salaried profile.