How the calculator works
It applies the slab rates for Tax Year 2026-27 under Section 202 of the Income-tax Act, 2025 (new regime, default) and the old regime on opting out. Rates for FY 2025-26 under the 1961 Act are the same, so the tool works for both years.
- New regime: 0% up to ₹4 lakh, then 5%, 10%, 15%, 20%, 25% in ₹4 lakh steps, and 30% above ₹24 lakh. Rebate up to ₹60,000 for resident individuals with total income up to ₹12 lakh, with marginal relief above that.
- Old regime: 0% up to ₹2.5 lakh (₹3 lakh for 60+, ₹5 lakh for 80+), 5%, 20% and 30% above ₹10 lakh; rebate ₹12,500 up to ₹5 lakh.
- Surcharge: 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore (37% above ₹5 crore only in the old regime), with marginal relief. Cess 4%.
For a detailed explanation see income tax slabs for Tax Year 2026-27 and Section 115BAC vs Section 202.
Frequently asked questions
Is income up to ₹12 lakh tax-free?
Under the new regime, a resident individual with total income up to ₹12 lakh pays no tax because of the rebate. A salaried person also gets the ₹75,000 standard deduction, so salary up to ₹12.75 lakh is tax-free.
Which regime should I choose?
Compare both with your actual deductions. The old regime usually helps only when HRA, home-loan interest and Chapter VI-A deductions together are large.
Does the calculator include capital gains?
No. Capital gains taxed at special rates (for example 12.5% LTCG or 20% STCG on listed equity) are not included and do not get the ₹12 lakh rebate.
Tool last reviewed 10 November 2026. Results are estimates for general guidance and are not professional advice.
Have a tax, GST or business question?
Call, WhatsApp or email CA Dilbagh Singh and team, from Delhi, anywhere in India or abroad.