India Income Tax Calculator FY 2026-27 — Old vs New Regime — Free
Calculate your income tax for FY 2025-26 (AY 2026-27). Compare Old and New tax regimes, calculate surcharge, cess, and find the best regime.
Income Tax Calculator FY 2026-27
Income Details
Basic + HRA + Allowances + Bonuses
FD, Savings Account, RD Interest
Annual rental income from house property
Freelance, Consultancy, Commission, etc.
Agricultural income (exempt but included for rate calculation)
Tax deducted by employer, bank, or other deductors
Tax Calculation ResultsNo Tax / Refund
Total Income
₹12,50,000
Taxable Income
₹11,75,000
Total Tax
₹0
Net Tax Payable
₹0
Tax Breakdown
Effective Tax Rate
of your total income
About this calculator
Comprehensive Guide to Income Tax in India (FY 2025-26)
How to Use the Income Tax Calculator India FY 2025-26
Follow these simple steps to calculate your figures accurately:
- Financial Year: Select FY 2024-25 (AY 2025-26) or FY 2025-26 (AY 2026-27).
- Gross Salary / Income (₹): Total gross annual salary before deductions.
- Age Group: Below 60 Years, Senior Citizen (60-79 Years), or Super Senior Citizen (80+ Years).
- Deductions under Old Tax Regime (₹): Section 80C (PPF/ELSS/EPF), Section 80D (Health Insurance), HRA u/s 10(13A), Home Loan Interest u/s 24(b), 80CCD(1B) NPS.
- Standard Deduction (₹): ₹75,000 under New Regime (FY 2025-26) or ₹50,000 under Old Regime.
- View Instant Results: Inspect the detailed summary card, breakdown chart, and year-wise schedule generated instantly.
The Income Tax Calculation Formulas
Gross Total Income = Salary + House Property Income + Capital Gains + Other Sources
Taxable Income (Old Regime) = Gross Total Income - Standard Deduction (₹50,000) - Section 80C/80D/HRA
Taxable Income (New Regime) = Gross Total Income - Standard Deduction (₹75,000 under New Regime)
Base Tax = Sum of (Income in Slab Tier * Slab Tax Rate %)
Net Tax Payable = (Base Tax - Section 87A Tax Rebate) * 1.04 (Includes 4% Cess)
Practical Income Tax Calculation Examples
Example 1: Salaried Individual Earning ₹10,00,000
Comparing tax for a salaried employee earning ₹10 Lakhs with ₹2 Lakhs in Old Regime deductions (80C + 80D).
New Tax Regime (Sec 115BAC):
- Gross Income: ₹10,00,000
- Standard Deduction: ₹75,000
- Taxable Income: ₹9,25,000
- Slab Tax Breakdown: ₹0–₹3L (0%), ₹3L–₹7L (5% = ₹20,000), ₹7L–₹9.25L (10% = ₹22,500)
- Total Tax (incl 4% Cess): ₹44,200
Old Tax Regime:
- Gross Income: ₹10,00,000
- Deductions (Std Ded ₹50k + Sec 80C ₹1.5L + Sec 80D ₹25k): ₹2,25,000
- Taxable Income: ₹7,75,000
- Total Tax (incl 4% Cess): ₹70,200
- Verdict: New Tax Regime saves ₹26,000 in tax.
New Tax Regime (Sec 115BAC) vs Old Tax Regime Comparison
| Feature / Deduction | Old Tax Regime | Default New Tax Regime (FY 2025-26) |
|---|---|---|
| Standard Deduction | ₹50,000 | ₹75,000 |
| Section 87A Rebate Threshold | Tax-free up to ₹5,00,000 | Tax-free up to ₹7,00,000 (Rebate up to ₹25,000) |
| Section 80C (PPF/EPF/ELSS) | Allowed (up to ₹1.5 Lakhs) | Disallowed |
| Section 80D (Health Ins) | Allowed (up to ₹25k / ₹50k) | Disallowed |
| HRA Exemption | Allowed | Disallowed |
Practical Example: Income Tax Comparison (Old vs New Tax Regime)
Suppose Sunil (Age 38) has a gross salary of ₹15,00,000 in FY 2025-26:
1. New Tax Regime (Section 115BAC):
- Gross Salary: ₹15,00,000
- Standard Deduction: -₹75,000
- Net Taxable Income: ₹14,25,000
- Tax Breakdown: 0-3L (Nil), 3-7L (5% = ₹20,000), 7-10L (10% = ₹30,000), 10-12L (15% = ₹30,000), 12-14.25L (20% = ₹45,000)
- Total Tax + 4% Cess: ₹1,25,000 + ₹5,000 = ₹1,30,000
2. Old Tax Regime (with ₹3,50,000 Total Deductions):
- Gross Salary: ₹15,00,000
- Standard Deduction (₹50,000) + 80C (₹1.5L) + HRA (₹1.5L) = -₹3,50,000
- Net Taxable Income: ₹11,50,000
- Total Tax + 4% Cess: ₹1,63,800
- Verdict: New Tax Regime saves Sunil ₹33,800 in tax!
Common Income Tax Calculator Mistakes to Avoid
- Failing to Compare Tax Liability Between New Tax Regime (Sec 115BAC) and Old Tax Regime: Defaulting to a tax regime without computing tax under both regimes after considering Section 80C, 80D, HRA, and standard deductions.
- Omitting Interest Income from Savings Accounts, FDs, and Dividends: Calculating income tax purely on Form 16 salary without adding taxable bank interest and mutual fund dividend payouts.
- Ignoring Section 80TTA / 80TTB Savings Account Interest Deduction Limits: Forgetting to claim Section 80TTA deduction (up to ₹10,000 for individual savings interest) or Section 80TTB (up to ₹50,000 for senior citizens).
- Applying Rebate Under Section 87A Incorrectly Across Tax Regimes: Expecting ₹25,000 Section 87A tax rebate (tax-free up to ₹7 Lakhs) under the Old Tax Regime, where the 87A rebate limit is capped at ₹12,500 (tax-free up to ₹5 Lakhs).
- Forgetting 4% Health and Education Cess on Total Assessed Tax: Computing income tax liability without adding the mandatory 4% Health and Education Cess to final tax dues.
- Failing to Disclose Foreign Assets and Bank Accounts (Schedule FA): Omitting foreign stocks (e.g. US equities), foreign bank accounts, or RSUs in ITR filings, incurring severe penalties under the Black Money Act.
Frequently Asked Questions
What is the difference between the old and new tax regimes in India?
The old tax regime allows you to claim numerous exemptions and deductions (HRA, LTA, Section 80C, 80D, home loan interest, etc.) before calculating tax on slabs. The new tax regime offers lower slab rates but most exemptions and deductions are not available. The better option depends on how much you can claim in deductions — the calculator lets you compare both regimes side by side.
Which deductions are allowed under the new tax regime for FY 2025-26?
Under the new regime, most popular deductions are not available, but a few remain — including the standard deduction for salaried employees and pensioners, employer's NPS contribution under Section 80CCD(2), and agniveer corpus contributions. The calculator applies these automatically based on your inputs so you see the correct net liability under each regime.
How do I enter income from multiple sources in this calculator?
You can typically enter income under different heads — salary, house property (rental income or loss), capital gains, and other sources — separately. The calculator aggregates them into your gross total income, applies eligible deductions, and then computes tax on the resulting net taxable income. Ensure you input each source accurately to get a reliable estimate.
What is surcharge and how does it affect my tax liability?
Surcharge is an additional levy on the income tax amount (not on income itself) applicable when your total income exceeds certain thresholds. Different surcharge rates apply at different income levels. Additionally, a Health and Education Cess is levied on the combined tax and surcharge amount. The calculator adds both automatically.
Is the tax computed by this calculator exactly what I need to pay?
The calculator gives a reliable estimate for salary and standard income scenarios, but the actual tax liability determined while filing your ITR may differ if you have complex income (e.g., equity capital gains, foreign income, business income, carried-forward losses). Always verify your final tax with a chartered accountant or by using the official income tax portal's computation.
Which tax regime is better: Old or New?
It depends on your eligible deductions. If your total deductions (under Section 80C, 80D, HRA, home loan interest, etc.) exceed approximately ₹3.75 Lakhs, the Old Regime is typically better. Otherwise, the New Regime, with its lower tax rates and ₹75,000 standard deduction, usually saves you more money.
What is the maximum tax-free income in FY 2025-26?
Under the New Regime, income up to ₹12 Lakhs is effectively tax-free due to the Section 87A rebate of ₹60,000. Under the Old Regime, income up to ₹5 Lakhs is tax-free due to the ₹12,500 rebate.
Can I switch between Old and New tax regimes every year?
Salaried individuals (without business income) can switch between the Old and New tax regimes every year when filing their Income Tax Return. However, individuals with business or professional income can switch to the Old regime only once in their lifetime.
Is the standard deduction available in the New Tax Regime?
Yes, starting from FY 2023-24, the standard deduction was introduced to the New Regime. In the latest budget for FY 2025-26, the standard deduction under the New Regime was increased to ₹75,000 (up from ₹50,000).
What happens if I miss the ITR filing deadline?
A late filing fee of up to ₹5,000 is charged under Section 234F (reduced to ₹1,000 if your total income is below ₹5 Lakhs). Additionally, you will be liable to pay penal interest at 1% per month on the pending tax amount under Section 234A, and you will lose the right to carry forward certain losses.
Are agricultural incomes taxable in India?
Agricultural income is entirely exempt from income tax under Section 10(1) of the Income Tax Act. However, if your non-agricultural income exceeds the basic exemption limit, your agricultural income is added to your total income for the purpose of determining the tax slab rate applicable to your non-agricultural income.
Are gifts from relatives taxable?
No, gifts received from specified relatives (parents, spouse, siblings, etc.) are fully exempt from tax regardless of the amount. However, gifts exceeding ₹50,000 in a year received from non-relatives or friends are fully taxable under "Income from Other Sources."
Conclusion
Using the Income Tax Calculator provides accurate, data-backed estimates tailored to Indian financial and tax regulations, helping you optimize your financial planning.
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Tax & Regional Disclaimer
Tax laws, social security contribution tiers, and statutory withholding rules vary by jurisdiction and change periodically. Calculated figures are estimates based on standard statutory rates. Please verify results with a licensed tax advisor or official regional tax authority before filing taxes.
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