विस्तृत हिंदी संस्करण जल्द आ रहा है। ऊपर दिए गए कैलकुलेटर इनपुट पूरी तरह से हिंदी में अनुवादित हैं।
Income Tax Calculator FY 2026-27 — Old vs New Regime Comparison
The Union Budget 2025 redrew India’s new-regime income-tax slabs with effect from 1 April 2025 (Financial Year 2026-27, Assessment Year 2027-28). The headline change: an enhanced rebate u/s 87A pushes the effective zero-tax threshold to ₹12 lakh taxable income (₹12.75 lakh gross for salaried, after the ₹75,000 standard deduction). For most middle-income Indian salaried earners, this is the simplest income-tax regime since the 1990s. This calculator runs both old and new regimes side-by-side with your real numbers so you can pick once and file accurately.
FY 2026-27 New Regime Slabs (Budget 2025 — Effective April 2025)
- Up to ₹4 lakh — Nil
- ₹4–8 lakh — 5%
- ₹8–12 lakh — 10%
- ₹12–16 lakh — 15%
- ₹16–20 lakh — 20%
- ₹20–24 lakh — 25%
- Above ₹24 lakh — 30%
Standard deduction for salaried employees: ₹75,000. Rebate u/s 87A: full tax rebate if taxable income is ≤ ₹12 lakh — meaning zero income tax up to that point. Above ₹12 lakh taxable, slabs apply normally, with marginal relief at the rebate boundary.
FY 2026-27 Old Regime Slabs (Unchanged)
- Up to ₹2.5 lakh — Nil (under 60)
- ₹2.5–5 lakh — 5%
- ₹5–10 lakh — 20%
- Above ₹10 lakh — 30%
Standard deduction: ₹50,000 for salaried. Senior citizens (60–80) get a ₹3 lakh basic exemption; super-senior (80+) gets ₹5 lakh. Rebate u/s 87A: full rebate if taxable income ≤ ₹5 lakh. All classical deductions are available: 80C up to ₹1.5 lakh, 80D health insurance up to ₹25K (₹50K for senior parents), 80CCD(1B) NPS up to ₹50K, HRA exemption under 10(13A), home-loan interest under Section 24(b) up to ₹2 lakh for a self-occupied house.
Standard Deduction, Rebate u/s 87A, Cess — What’s Changed
Three FY 2026-27 changes worth knowing: (1) standard deduction under the new regime is ₹75,000 versus ₹50,000 in the old — an extra ₹25,000 of tax-free income for salaried in the new regime; (2) the new-regime 87A rebate threshold is now ₹12 lakh (up from ₹7 lakh in FY 2024-25) — anyone earning up to ₹12.75 lakh gross salaried pays zero income tax; (3) cess at 4% on tax + surcharge is unchanged in both regimes.
Old vs New Regime — Which Should You Pick?
On a ₹15 lakh gross salary with full deductions (₹1.5L 80C, ₹50K NPS, ₹25K 80D, ₹2L HRA, ₹2L home-loan interest = ~₹6 lakh total deductions), the old regime taxable income drops to roughly ₹8.5 lakh and total tax comes in around ₹85,000–95,000. The new regime on the same ₹15L gross applies the slab walk to ₹14.25 lakh taxable, gives base tax around ₹1.05 lakh, no rebate (over the ₹12 lakh cap), and post-cess lands around ₹1.09 lakh. In this profile the old regime saves roughly ₹15,000–20,000.
The break-even threshold moves with your deductions: the lower your eligible deductions, the more the new regime wins. With zero deductions a ₹15L gross salaried earner pays around ₹1.09 lakh under the new regime versus ₹2.65 lakh under the old regime — the new regime is dramatically cheaper. Use this calculator with your actual numbers, not rules of thumb.
Surcharge & Marginal Relief Explained
Surcharge is a percentage added on top of base tax for higher incomes: 10% above ₹50 lakh taxable, 15% above ₹1 crore, 25% above ₹2 crore, and a 37% top bracket under the old regime above ₹5 crore. The new regime caps surcharge at 25% per Budget 2023 — making it materially cheaper for high earners. Marginal relief ensures that crossing a surcharge threshold by ₹1 never costs more than the extra ₹1 you earned — the surcharge is automatically capped so the post-tax income remains monotonically increasing.
When the Old Regime Still Wins
High-deduction profiles: home-loan EMI runner (₹2 lakh interest under Section 24), 80C maxed (PPF + ELSS + life insurance), 80D for self + parents (₹75K combined), 80CCD(1B) NPS (₹50K), HRA exemption based on metro rent (₹2–3 lakh). When your total eligible deductions cross roughly ₹4.5–5 lakh, the old regime usually beats the new for gross incomes above ₹15 lakh. The gap widens as gross income rises into the surcharge brackets.
When the New Regime Wins
Low-deduction profiles: young professionals living in a parental home (no HRA / no home-loan), early-career earners with limited 80C savings, freelancers/business income without HRA at all. The new regime ALWAYS wins for incomes up to ₹12.75 lakh salaried (because of the 87A rebate). Between ₹13L and ₹20L the new regime usually wins unless deductions exceed ₹4 lakh. For business income (no standard deduction either way), the new regime wins more aggressively because the deduction gap is smaller.
Salaried vs Business — Different Optimal Choice
Salaried employees get standard deduction under both regimes (₹75K new / ₹50K old), making the new regime slightly more advantaged. Business / professional income (44AD / 44ADA presumptive) gets no standard deduction — both regimes compute tax on raw business profit. Salaried can switch regimes every year by simply declaring to the employer; business income can switch back to the old regime only once after opting into the new — so business owners should model carefully before locking the new regime.
Senior Citizen Benefits — Old Regime Extra Exemption
Under the old regime, senior citizens (60–80 years) get a ₹3 lakh basic exemption instead of ₹2.5 lakh, and super-senior citizens (80+) get a ₹5 lakh basic exemption. The new regime treats all ages identically — no extra senior benefit beyond the ₹12 lakh 87A rebate. For seniors with a fixed pension below ₹10 lakh, the old regime is often materially better because of the larger exemption combined with classical deductions like 80D (₹50K for senior health insurance) and 80TTB (₹50K bank interest exemption — old regime only).
Income Tax FAQs
What’s new in the FY 2026-27 income tax slabs?
The new regime gets revised slabs effective April 2025 (Budget 2025): nil up to ₹4 lakh, 5% to ₹8L, 10% to ₹12L, 15% to ₹16L, 20% to ₹20L, 25% to ₹24L, 30% above. Standard deduction rises to ₹75,000. Rebate u/s 87A means zero tax up to ₹12 lakh taxable income (₹12.75 lakh gross for salaried). Old regime slabs are unchanged.
Should I pick the new regime or stay with the old one?
Rough rule: if your total deductions (80C maxed at ₹1.5L + HRA exemption + home-loan interest + 80D + NPS) exceed roughly ₹4–4.5 lakh, the old regime usually wins above ₹15L gross. If your deductions are minimal, the new regime wins almost always — and the ₹12L rebate makes it unbeatable for incomes up to ₹12.75L salaried. Use the calculator to see your exact break-even.
What is rebate u/s 87A and who gets it?
Section 87A gives a full tax rebate (effective zero tax) to resident individuals whose taxable income is below a threshold. New regime FY 2026-27: ₹12 lakh threshold. Old regime: ₹5 lakh threshold. Only residents qualify; NRIs cannot claim 87A. The rebate is computed on the base tax before surcharge and cess.
How is surcharge calculated on income tax?
Surcharge is a percentage added on top of the base tax for high incomes. Slabs: 10% surcharge for taxable income above ₹50L, 15% above ₹1Cr, 25% above ₹2Cr. Old regime adds a 37% bracket above ₹5Cr; the new regime caps surcharge at 25%. Marginal relief is applied automatically at each threshold so the extra tax never exceeds the extra income that pushed you across it.
Is standard deduction available under both tax regimes?
Yes, but the amount differs: salaried employees get ₹75,000 under the new regime (FY 2026-27) and ₹50,000 under the old regime. Self-employed / business income gets no standard deduction under either regime.
What deductions do I lose under the new regime?
Everything except the higher standard deduction. No 80C (PPF, ELSS, life insurance), no 80D (health insurance), no HRA exemption, no home-loan interest under Section 24, no 80CCD(1B) NPS extra, no LTA, no professional-tax deduction, no donations under 80G. Only the standard deduction and an enhanced rebate u/s 87A remain.
Can I switch between old and new regime every year?
Salaried employees can switch every financial year — declare your choice to your employer at the start of FY for accurate TDS. Self-employed / business income can switch only once back to the old regime in their lifetime after opting into the new regime, so think carefully if you have business income.
How does this calculator handle HRA exemption?
Enter your annual HRA exemption directly (compute it as the minimum of: actual HRA received, rent paid minus 10% of basic, 50% of basic for metros / 40% for non-metros). The calculator applies it only under the old regime — HRA exemption is not available under the new regime. For a detailed walkthrough use the Wendesk Salary Calculator.
Is this calculator accurate for business income?
Yes for the slab + surcharge + cess math. Business income skips the standard deduction (which is salaried-only). Note that business income may also face presumptive taxation under 44AD / 44ADA, advance-tax obligations quarterly, and GST interactions that this calculator does not model. For real CA-grade computation use a chartered accountant or Wendesk Team Ops payroll.
When does this calculator need updating?
The slabs reflect Budget 2025 (effective April 2025) for FY 2026-27 / Assessment Year 2027-28. If Budget 2026 (presented ~February 2026) changes slabs, rates, standard deduction, or rebate thresholds, this calculator gets updated within 7 days of the budget speech.
When to Use This Calculator
- Annual regime selection — early April every year, before declaring to your employer for the year’s TDS
- Job change mid-year — model how the new gross changes your regime choice and tax outflow
- Tax-saving investment planning — see whether topping up 80C / NPS actually saves enough to make old regime worth it
- Home loan decision — model the marginal tax benefit of home-loan interest under Section 24 over the first few EMI years
- Year-end TDS reconciliation — January checkpoint to verify your employer’s tax projection matches actual liability
- Senior-citizen pension planning — toggle age groups to see how exemption changes the tax bill
Related Free Tools from Wendesk
- Salary Calculator — CTC to monthly in-hand with PF, HRA, professional tax deductions
- EMI Calculator — Home loan EMI + amortization (interest qualifies under Section 24)
- SIP Calculator — Plan monthly mutual-fund investments (ELSS qualifies under 80C)
- GST Calculator — Compute CGST/SGST/IGST on any invoice