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About the Income Tax Calculator FY 2026-27
India runs two parallel personal tax systems. The new regime has wider slabs and lower rates but allows almost no deductions; the old regime taxes more heavily but lets you claim 80C, 80D, HRA, home loan interest and the rest. Since the new regime became the default, choosing correctly is worth tens of thousands of rupees a year.
The rule of thumb is a break-even around ₹3.5–4 lakh of total deductions: below that the new regime almost always wins, above it the old regime pulls ahead. But the rule is only a rule — this calculator computes both on your exact numbers, including surcharge, cess, the Section 87A rebate and marginal relief.
The formula
Marginal relief is applied just above ₹12 lakh so that tax never exceeds the income earned beyond the threshold.
Things worth knowing
Frequently asked questions
Under the new regime: nil up to ₹4 lakh, 5% from ₹4–8 lakh, 10% from ₹8–12 lakh, 15% from ₹12–16 lakh, 20% from ₹16–20 lakh, 25% from ₹20–24 lakh and 30% above ₹24 lakh. Budget 2026 left these unchanged from the previous year.
Yes, under the new regime. The Section 87A rebate of ₹60,000 wipes out the tax on taxable income up to ₹12 lakh. For a salaried taxpayer the ₹75,000 standard deduction pushes the effective threshold to ₹12.75 lakh of gross salary.
Add up your deductions. Below roughly ₹3.5–4 lakh the new regime almost always wins; above it the old regime usually does. The comparison above settles it for your exact numbers.
Salaried taxpayers can choose afresh every financial year when filing. Taxpayers with business or professional income can move from the new regime to the old only once, and cannot return.
The ₹75,000 standard deduction, the employer's NPS contribution under 80CCD(2), and a few specific exemptions. Section 80C, 80D, HRA and home loan interest on a self-occupied property are all unavailable.
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