Free Tool

Income Tax Calculator India FY 2026-27

Compare new regime vs old regime tax instantly. Includes 80C, 80D, HRA deductions. Zero tax up to ₹12 lakh under new regime.

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Tax Parameters
Annual income & old regime deductions (FY 2026-27).
12,00,000
2L50L

Old Regime Deductions

max 1.5L · PF / PPF / ELSS
max 25K · Medical Insurance
House Rent Allowance

Tax Optimization Recommendation

New Tax Regime is recommended for you

You save ₹1,11,800 in annual tax liability.

New Tax Regime

Optimal

Net Tax Payable

₹0

Std. Deduction₹75,000
Taxable Income₹11,25,000
Effective Rate0.0%

94% of gross is taxable

Old Tax Regime

Net Tax Payable

₹1,11,800

Total Deductions₹2,25,000
Taxable Income₹9,75,000
Effective Rate9.3%

81% of gross is taxable

Effective Tax Rate Comparison

New Regime0.0%
Old Regime9.3%

Bars scaled to 30% max rate. Includes 4% Health & Education Cess and applicable surcharge.

Surcharges & Cess: Slabs incorporate the mandatory 4% Health & Education Cess, standard 75K rebate thresholds under Section 87A (FY 2026-27), and surcharge calculations up to 37% for high earners. Always verify with a CA for final returns.

Income Tax Slabs FY 2026-27

New Regime Slabs

Up to ₹4,00,0000%
₹4L – ₹8L5%
₹8L – ₹12L10%
₹12L – ₹16L15%
₹16L – ₹20L20%
₹20L – ₹24L25%
Above ₹24L30%

Rebate u/s 87A: Zero tax liability if your total income does not exceed ₹12 Lakh.

Old Regime Slabs

Up to ₹2,50,0000%
₹2.5L – ₹5L5%
₹5L – ₹10L20%
Above ₹10L30%

Old Regime Perks: Allows standard deductions like Section 80C, 80D, HRA exemption, and home loan interest.

Frequently Asked Questions

What is the income tax slab for FY 2026-27 under the new regime?

Under the new regime for FY 2026-27: 0–₹4L = 0%, ₹4–8L = 5%, ₹8–12L = 10%, ₹12–16L = 15%, ₹16–20L = 20%, ₹20–24L = 25%, above ₹24L = 30%. Income up to ₹12 lakh is effectively tax-free due to rebate u/s 87A.

Is income up to ₹12 lakh really tax-free in FY 2026-27?

Yes, under the new tax regime. The rebate under Section 87A was enhanced in Budget 2025 to make income up to ₹12 lakh effectively tax-free. For salaried individuals, with the ₹75,000 standard deduction, income up to ₹12.75 lakh is tax-free.

Which is better — new regime or old regime?

It depends on your deductions. If you have high deductions (80C, HRA, 80D, home loan interest), the old regime may save more tax. If your deductions are low, the new regime is usually better. Use this calculator to compare both for your specific income.

What deductions are allowed under the old regime?

The old regime allows deductions like Section 80C (up to ₹1.5L for PF, PPF, ELSS, LIC), Section 80D (health insurance up to ₹25K), HRA exemption, home loan interest (Section 24B up to ₹2L), and standard deduction of ₹50,000.

What is the standard deduction in FY 2026-27?

Under the new regime, the standard deduction is ₹75,000 for salaried individuals. Under the old regime, it is ₹50,000. This is automatically deducted from your gross salary before calculating tax.

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