Income Tax Calculator
Calculate income tax for FY2026-27 • Old vs New Regime Comparison
Your taxable salary (CTC minus Employer PF & Gratuity)
▶View Deductions Breakdown
▶View Income Sources
▶View Slab-wise Calculation
📋 Detailed Income & Tax Breakdown by Source(1 sources)▼
Tax Calculation - Old Regime
Tax Calculation - New Regime
Disclaimer: Estimates based on FY 2026-27 rules (Income Tax Act 2025). Consult a tax professional for accurate ITR filing.
Best Tax Payable
₹0
How to Calculate Income Tax in India (FY 2026-27)
Calculating income tax in India involves a few simple steps. Our calculator automates this process, but here's how it works:
- Add all income sources: Salary, house property, capital gains, interest income, and other sources like lottery winnings or cryptocurrency.
- Calculate Gross Total Income: Sum of all income before deductions.
- Apply eligible deductions: Under Old Regime, claim deductions like 80C (₹1.5L), 80D (health insurance), 80CCD(1B) (NPS ₹50K), HRA exemption, and home loan interest under Section 24(b).
- Compute Taxable Income: Gross Income minus Deductions.
- Apply tax slabs: Calculate tax based on applicable slab rates for your chosen regime.
- Add Surcharge & Cess: Surcharge applies for income above ₹50 Lakh. 4% Health & Education Cess applies on total tax.
- Claim 87A Rebate: If eligible (income ≤ ₹12L new regime / ₹5L old regime), rebate reduces tax to zero.
Income Tax Slabs FY 2026-27 (AY 2027-28)
New Tax Regime (Default)
| Income Slab | Tax Rate |
|---|---|
| Up to ₹4 Lakh | Nil |
| ₹4L - ₹8 Lakh | 5% |
| ₹8L - ₹12 Lakh | 10% |
| ₹12L - ₹16 Lakh | 15% |
| ₹16L - ₹20 Lakh | 20% |
| ₹20L - ₹24 Lakh | 25% |
| Above ₹24 Lakh | 30% |
💡 Tax-free income up to ₹12.75L (₹12L rebate + ₹75K standard deduction)
Old Tax Regime (Individuals < 60 years)
| Income Slab | Tax Rate |
|---|---|
| Up to ₹2.5 Lakh | Nil |
| ₹2.5L - ₹5 Lakh | 5% |
| ₹5L - ₹10 Lakh | 20% |
| Above ₹10 Lakh | 30% |
💡 Benefit: Claim deductions under 80C, 80D, 80CCD, HRA, home loan interest, etc.
Senior Citizens Tax Benefit (Old Regime)
• 60-80 years: Basic exemption ₹3 Lakh (vs ₹2.5L for others)
• Above 80 years: Basic exemption ₹5 Lakh
• 80TTB deduction: ₹50,000 on interest income (vs ₹10K under 80TTA)
Popular Tax Deductions (Old Regime Only)
Section 80C
Max ₹1.5 LakhPPF, ELSS, LIC Premium, EPF, NSC, Tax-saving FD, Home Loan Principal, Children Tuition Fees
Section 80D
Max ₹1 LakhHealth insurance: ₹25K self/family + ₹25K parents (₹50K each if senior citizens). Preventive health checkup included.
Section 80CCD(1B)
Max ₹50,000Additional NPS contribution over and above 80C limit. Total tax saving potential: ₹2 Lakh (80C + 80CCD1B)
Section 24(b)
Max ₹2 LakhHome loan interest for self-occupied property. No limit for let-out property (entire interest deductible).
HRA Exemption
Formula-basedMinimum of: Actual HRA received, Rent paid - 10% Basic, 50% Basic (metro) / 40% Basic (non-metro)
Section 80E
No LimitEducation loan interest for higher studies. Deduction available for 8 years from start of repayment.
Old Regime vs New Regime: Which Should You Choose?
✅ Choose Old Regime If:
- • You have deductions > ₹4-5 Lakh (80C, 80D, HRA, home loan)
- • You receive significant HRA (especially in metro cities)
- • You have home loan with interest > ₹2 Lakh/year
- • You invest in tax-saving instruments like ELSS, PPF, NPS
- • Your income is between ₹7-12 Lakh with good deductions
✅ Choose New Regime If:
- • You have minimal or no tax-saving investments
- • You don't receive HRA or live in own house
- • Your income is below ₹12 Lakh (tax-free with rebate)
- • You prefer simpler tax filing without tracking investments
- • Your deductions are less than ₹3-4 Lakh
Break-even Deductions by Income Level
| Gross Income | Break-even Deductions | Better Regime |
|---|---|---|
| Up to ₹5 Lakh | — | Both (Zero tax) |
| ₹7 Lakh | ₹1.5 Lakh | Old if deductions > ₹1.5L |
| ₹10 Lakh | ₹4.5 Lakh | Old if deductions > ₹4.5L |
| ₹15 Lakh | ₹5.4 Lakh | New for most people |
| ₹20+ Lakh | ₹7+ Lakh | New for most people |
Special Income Tax Rules (FY 2026-27)
📈 Capital Gains Tax
- • STCG (Equity): 20% for holding < 12 months
- • LTCG (Equity): 12.5% above ₹1.25 Lakh exemption
- • STCG (Other assets): As per income tax slab
- • LTCG (Other): 12.5% (without indexation)
🪙 Cryptocurrency (Section 115BBH)
- • Flat tax: 30% + 4% cess = 31.2%
- • No deductions allowed (not even basic exemption)
- • No set-off of losses against other income
- • 1% TDS on crypto transfers above ₹50K/year
🎰 Lottery & Game Show Winnings (Section 115BB)
- • Flat tax: 30% + surcharge + 4% cess
- • No basic exemption limit applies
- • Includes betting, gambling, online gaming winnings
- • TDS deducted at source by payer
💰 Dividend Income
- • Taxed at slab rates (no separate treatment)
- • 10% TDS if dividend > ₹5,000/year
- • Interest expense deduction up to 20% of dividend
- • Applies to shares and mutual fund dividends
Surcharge & Health Education Cess
Surcharge Rates (on Tax)
| Taxable Income | Surcharge |
|---|---|
| Up to ₹50 Lakh | Nil |
| ₹50L - ₹1 Crore | 10% |
| ₹1Cr - ₹2 Crore | 15% |
| ₹2Cr - ₹5 Crore | 25% |
| Above ₹5 Crore | 37% (Old) / 25% (New) |
* Surcharge on capital gains u/s 111A, 112, 112A is capped at 15%
Health & Education Cess
4% on (Tax + Surcharge). This cess funds healthcare and education initiatives.
Section 87A Rebate (FY 2026-27)
- • New Regime: ₹60,000 rebate if income ≤ ₹12 Lakh
- • Old Regime: ₹12,500 rebate if income ≤ ₹5 Lakh
- • Not applicable on special rate income (LTCG, crypto, etc.)
Frequently Asked Questions
Is income up to ₹12 Lakh really tax-free under the new regime?▼
Yes. For FY 2026-27 (unchanged from FY 2025-26), the new regime offers ₹60,000 rebate u/s 87A for taxable income up to ₹12 Lakh. Combined with ₹75,000 standard deduction, salary income up to ₹12.75 Lakh is effectively tax-free.
Can I switch between Old and New regime every year?▼
Yes, salaried individuals can switch between regimes every financial year while filing ITR. However, if you have business income, you can switch only once in your lifetime (requires Form 10-IEA).
Are deductions like 80C and 80D allowed in the new regime?▼
No, most deductions are not allowed in the new regime. Only standard deduction (₹75K) and employer's NPS contribution u/s 80CCD(2) are available. The new regime compensates with lower tax rates.
How is cryptocurrency taxed in India?▼
Cryptocurrency and all Virtual Digital Assets (VDA) are taxed at a flat 30% plus 4% cess (effective 31.2%) under Section 115BBH. No deductions, exemptions, or loss set-offs are allowed.
What is the basic exemption limit for senior citizens?▼
Under the old regime: ₹3 Lakh for seniors (60-80 years) and ₹5 Lakh for super seniors (80+ years). Under the new regime, there's no special exemption for seniors—everyone gets ₹4 Lakh.
How much home loan interest can I claim?▼
For self-occupied property: up to ₹2 Lakh under Section 24(b) in the old regime only. For let-out property: entire interest is deductible without any limit. Principal repayment is covered under 80C.
Why Use Our Income Tax Calculator?
Instant Calculation
Real-time tax computation as you enter values
Regime Comparison
See which regime saves you more tax
Detailed Breakdown
Income-wise and section-wise tax details
Updated for 2025-26
Latest slabs, rebates, and deduction limits
Disclaimer: This calculator provides estimates based on Income Tax Act provisions for FY 2026-27 (the first financial year under the new Income Tax Act 2025, effective 1 April 2026). Actual tax liability may vary based on individual circumstances. Always consult a qualified tax professional or Chartered Accountant for accurate tax filing and planning advice.