Income Tax Calculator
Calculate personal income tax liability under both Old and New Tax Regimes for Financial Year 2026-27 (Assessment Year 2027-28) in India.
Input Calculation Parameters
Calculation Results
How the Calculation Works
New Regime features revised tax slabs with a standard deduction of ₹75,000 and Section 87A rebate for taxable income up to ₹7 Lakh. Old Regime permits 80C, 80D, HRA, and 24(b) deductions with ₹50,000 standard deduction.
Worked Example
Here is a step-by-step example calculation for ₹12 Lakh Gross Salary with ₹2.95 Lakh Deductions:
| Parameter | Value |
|---|---|
| Old Regime Tax | ₹96,200 |
| New Regime Tax | ₹83,200 |
| Recommendation | New Tax Regime saves ₹13,000 |
Scenario Analysis
Comparing different tenures, interest rates, or investment horizons:
| Scenario Label | Key Metric |
|---|---|
| Salaried Income < ₹7.75 Lakh | Tax: ZERO Tax under New Regime due to Standard Deduction + 87A Rebate. |
| Salaried Income ₹12 Lakh (High Deductions) | Tax: Old Regime may win if total deductions exceed ₹3.75 Lakh. |
Common Mistakes to Avoid
- Assuming Old Regime is always better for salaried employees without computing actual claimed exemptions.
- Forgetting that the New Tax Regime is the default regime in India.
Frequently Asked Questions (FAQs)
What is the standard deduction for salaried employees in FY 2026-27?
₹75,000 under the New Tax Regime and ₹50,000 under the Old Tax Regime.
Is Sec 87A tax rebate available under New Regime?
Yes, full tax rebate under Sec 87A is available for taxable income up to ₹7,00,000 in the New Regime.
Authoritative Sources & Regulatory References
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