Free Tax Tool — FY 2025-26 / AY 2026-27
Income Tax Calculator: FY 2025-26 / AY 2026-27
Compare an AY 2026-27 ordinary-income illustration for a resident individual under age 60 using eligible deductions. Special-rate income and individual eligibility require separate calculations.
✓ FY 2025-26 / AY 2026-27 assumptions
✓ Ordinary salary-income model
✓ 80C, HRA, NPS included
✓ Free, no login
Tax FAQs
Common questions about New vs Old Tax Regime in India 2026
Which tax regime is better for ₹12 lakh salary? +
For a resident individual with ₹12 lakh of salary and only ordinary slab-rate income, the new-regime rebate can reduce income tax to zero. The old regime cannot save tax below zero. Compare both regimes with your eligible deductions; special-rate income can change the outcome.
Is New Tax Regime compulsory from April 2026? +
No. The new regime is the default, but eligible individuals can opt for the old regime. For AY 2026-27, salaried individuals without business income choose through a timely ITR; Form 10-IEA applies to relevant business/profession cases. Your employer’s TDS declaration is a separate step. See the official guidance linked above.
What deductions are allowed in New Tax Regime? +
For this salary-only illustration, the new regime allows a standard deduction up to ₹75,000 and eligible employer NPS contributions. Employee PF contributions, HRA exemption, and most personal investment deductions do not reduce new-regime taxable salary. Rules and limits depend on the claim.
What is the zero tax limit in New Regime 2026? +
For AY 2026-27, the rebate applies to eligible resident individuals with total taxable income up to ₹12 lakh, subject to the ordinary-rate tax limit of ₹60,000. Salary of ₹12.75 lakh may produce ₹12 lakh taxable income after a ₹75,000 standard deduction. Taxable income and gross salary are different; capital gains and other special-rate income need separate treatment.
Can I switch between old and new regime every year? +
For AY 2026-27, eligible people without business income may choose the regime in a timely ITR each year. People with business/profession income face different election and re-entry conditions. Do not assume your employer’s TDS choice settles the final return election.
Assumptions: resident individual under 60, ordinary slab-rate income only, FY 2025-26 (AY 2026-27). Includes rebate, marginal relief, surcharge and 4% cess. Excludes capital gains, special-rate income and individual exceptions. Salary deductions depend on eligibility.
Income Tax Department guidance. Figures are estimates; verify before filing.