ModernCalcs

Income Tax India (FY 2026-27)

Compare New vs Old regime tax liability with latest Budget 2026 slabs (u/s 115BAC) and deductions.

₹
₹1,00,000₹1,00,00,000

Exemptions & Deductions (Old Regime)

New Regime
₹97,500
Estimated Tax
Take Home₹1,16,875/mo
Old Regime
₹2,02,800
Estimated Tax
Take Home₹1,08,100/mo
Potential Savings
₹1,05,300

Switch to the New Regime to maximize your in-hand salary.

Tax Strategy

The New Regime is generally better for individuals with high salaries and low investments.

To make the Old Regime beneficial at this income level, you would need additional deductions of at least ₹3,00,000 per year.

This calculator is for illustrative purposes based on the Union Budget 2025-26 proposals. It includes the 4% health and education cess.

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Old vs New Tax Regime

The New Tax Regime is the default and offers lower slab rates but no deductions. The Old Tax Regime allows HRA, LTA, 80C, and 80D, which can save more tax for those with large investments or home loans.

Budget 2026 Highlights (New Regime u/s 115BAC)

  • First nil bracket raised to ₹4,00,000 (from ₹3L in FY 2025-26).
  • Top bracket starts at ₹24,00,000 (30%); previous top was ₹20L.
  • Standard Deduction: ₹75,000 for salaried taxpayers (unchanged).
  • 4% Health & Education Cess applies to final tax.

Income Tax Calculator India: Plan for FY 2026-27 (AY 2027-28)

Tax planning is an essential part of financial management in India. With the introduction of multiple tax regimes and frequent budget updates, choosing the right way to file your taxes can save you thousands of rupees. Our Income Tax Calculator is updated with the latest Union Budget 2026 changes (Section 115BAC), allowing you to compare the Old vs. New Tax Regime for the Financial Year 2026-27.

Formula
Tax Payable = (Taxable Income × Applicable Slab Rate) + 4% Cess

Taxable Income = Gross Income - Standard Deduction - Section 80C/80D Deductions (if applicable)

Expert Verified Calculation

This calculator utilizes standard mathematical formulas audited and verified by our team of Tax Consultants & Chartered Accountants (CA) to ensure mathematical precision and compliance.

Last Evaluated: May 2026
Official Guidelines

New Tax Regime vs. Old Tax Regime

The New Tax Regime is now the default option. It offers lower slab rates and a higher Standard Deduction of ₹75,000 (increased from ₹50,000). However, it does not allow most deductions like 80C, 80D, or HRA. The Old Tax Regime allows you to claim multiple deductions but has higher tax rates. Generally, if your total deductions are less than ₹3.75 Lakhs, the New Regime is likely more beneficial.

The Zero Tax Limit: Section 87A Rebate

One of the most attractive features of the New Regime is the tax rebate. Individuals with a taxable income up to ₹7 Lakhs pay zero income tax. In the Old Regime, this rebate is available for income up to ₹5 Lakhs. This makes the New Regime highly suitable for middle-income earners who don't have large investments.

Key Deductions in the Old Regime

If you choose the Old Regime, you can reduce your taxable income using: 1) Section 80C (up to ₹1.5 Lakhs in PPF, ELSS, LIC). 2) Section 80D (Health Insurance premiums). 3) Section 24(b) (Home Loan interest up to ₹2 Lakhs). 4) HRA (House Rent Allowance) if you live in a rented house.

Standard Deduction for Salaried Class

The standard deduction is a flat amount deducted from your gross salary before calculating tax. For FY 2026-27, the standard deduction remains ₹75,000 for salaried taxpayers and pensioners under the New Tax Regime — unchanged from the previous year.

Practical Examples

Salary of ₹10 Lakhs (New Regime FY 2026-27)

Calculating tax for a typical professional with no investments.

  • 1.Gross Income: ₹10,00,000
  • 2.Standard Deduction: ₹75,000
  • 3.Taxable Income: ₹9,25,000
  • 4.5% on ₹4L–₹8L: ₹20,000 | 10% on ₹8L–₹9.25L: ₹12,500
  • 5.Tax before cess: ₹32,500 | Cess (4%): ₹1,300
  • 6.Final Tax: ₹33,800

Salary of ₹15 Lakhs (Regime Comparison FY 2026-27)

Seeing which regime wins at higher income — with standard deductions in Old Regime.

  • 1.Gross Income: ₹15,00,000
  • 2.New Regime Tax (taxable ₹14.25L): ₹97,500
  • 3.Old Regime Tax (taxable ₹12.75L with Sec 80C + 80D): ₹2,02,800
  • 4.New Regime is better by: ₹1,05,300

New Tax Slabs FY 2026-27 (u/s 115BAC)

  • Up to ₹4,00,000: Nil (No tax)
  • ₹4,00,001 to ₹8,00,000: 5%
  • ₹8,00,001 to ₹12,00,000: 10%
  • ₹12,00,001 to ₹16,00,000: 15%
  • ₹16,00,001 to ₹20,00,000: 20%
  • ₹20,00,001 to ₹24,00,000: 25%
  • Above ₹24,00,000: 30%
  • Standard deduction: ₹75,000 for salaried | 4% Health & Education Cess on final tax

Important Tax Filing Deadlines

  • July 31st: Deadline for individuals (Non-Audit cases).
  • September 30th: Deadline for Audit cases (Businesses).
  • December 31st: Last date for Belated or Revised returns.
  • March 31st: Final deadline for making tax-saving investments.

Frequently Asked Questions

Which tax regime is default for FY 2026-27?

The New Tax Regime is the default regime. If you wish to use the Old Regime, you must explicitly opt for it while filing your ITR.

What is the rebate under Section 87A?

It's a tax credit that makes your tax liability zero if your total income is below the specified threshold (₹7L for New Regime, ₹5L for Old).

Is NPS deduction allowed in the New Regime?

Yes, the employer's contribution to NPS under Section 80CCD(2) is allowed as a deduction in both regimes.

Can I switch regimes every year?

Salaried individuals can switch between regimes every year. However, individuals with business income can only switch once in their lifetime.

What is Health and Education Cess?

It is an additional tax of 4% calculated on the total income tax payable, used by the government for health and education initiatives.

Is HRA allowed in the New Regime?

No, House Rent Allowance (HRA) exemption is not available in the New Tax Regime.

How much tax can I save under 80C?

Under the Old Regime, you can claim up to ₹1.5 Lakhs by investing in PPF, ELSS, NPS, or paying school fees/life insurance premiums.

What is the tax rate for senior citizens?

In the Old Regime, the basic exemption limit is ₹3 Lakhs for those aged 60-80, and ₹5 Lakhs for those above 80. In the New Regime, it's uniform at ₹3 Lakhs for all.

What happens if I miss the ITR deadline?

You will have to pay a late fee under Section 234F (up to ₹5,000) and interest on the unpaid tax amount.

What is Surcharge on Income Tax?

Surcharge is an additional tax for high-income earners (usually above ₹50 Lakhs), ranging from 10% to 25% of the tax amount.

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