Income Tax Estimator India FY 2025–26

Compare new vs old tax regime. Enter your CTC, variable pay, and deductions to get your exact tax liability.

Income Details

Enter amounts in Indian Rupees (₹). CTC/income should be the fixed annual component.

Enter in Lakhs (LPA). Example: enter 24 for ₹24,00,000 per year

LPA

Old Regime Deductions (optional)

New Regime Slabs (FY 2026-27)

Income RangeRate
₹0 – ₹4,00,0000%
₹4,00,001 – ₹8,00,0005%
₹8,00,001 – ₹12,00,00010%
₹12,00,001 – ₹16,00,00015%
₹16,00,001 – ₹20,00,00020%
₹20,00,001 – ₹24,00,00025%
Above ₹24,00,00030%

+ 4% Cess. Zero tax up to ₹12L (87A rebate). Std deduction ₹75,000.

Old Regime Deductions

80C

ELSS, PPF, LIC, PF

₹1,50,000
80CCD(1B) NPS

Additional NPS

₹50,000
HRA

Sec 10(13A)

Actual exempt
Home Loan Interest

Section 24B

₹2,00,000
Std Deduction

All salaried

₹50,000

Advertisement

Income Tax Slabs FY 2026-27 — New Regime Explained

Under the new tax regime for FY 2026-27 (AY 2027-28), the income tax slabs are structured to provide maximum benefit to middle-income salaried employees. The most significant benefit is the enhanced Section 87A rebate of Rs.60,000 — which effectively makes income up to Rs.12 lakh completely tax-free after the Rs.75,000 standard deduction.

Income SlabTax RateMaximum Tax in Slab
Rs.0 – Rs.4 Lakh0%Rs.0
Rs.4 – Rs.8 Lakh5%Rs.20,000
Rs.8 – Rs.12 Lakh10%Rs.40,000
Rs.12 – Rs.16 Lakh15%Rs.60,000
Rs.16 – Rs.20 Lakh20%Rs.80,000
Rs.20 – Rs.24 Lakh25%Rs.1,00,000
Above Rs.24 Lakh30%Unlimited

All figures above are before adding 4% Health and Education Cess on the total tax amount.

New Tax Regime vs Old Tax Regime — When to Choose Which

The fundamental question for every salaried employee in India is which tax regime results in lower tax. The answer depends on how much you can claim in deductions under the old regime. Here is a practical guide:

Choose New Regime if:

  • Your income is Rs.12L or below (zero tax)
  • You claim less than Rs.3.75L in total deductions
  • You do not have HRA exemption or home loan interest
  • You prefer simplicity without maintaining investment proofs

Choose Old Regime if:

  • You claim HRA exemption (especially in high-rent cities)
  • You pay home loan interest above Rs.1.5L/year
  • Your 80C investments + other deductions exceed Rs.3.75L
  • You have significant LTA or medical reimbursement claims

For most salaried employees earning below Rs.15 LPA with standard deductions, the new tax regime results in zero or lower tax due to the Rs.12L rebate and Rs.75,000 standard deduction. Use the calculator above to compare both regimes with your exact numbers.

How TDS is Deducted from Salary

Your employer deducts Tax Deducted at Source (TDS) from your monthly salary under Section 192 of the Income Tax Act. The calculation is simple: your employer estimates your annual tax liability, divides it by 12, and deducts that amount every month. You must declare your tax regime to your employer at the start of each financial year (April). If you do not declare, your employer defaults to the new tax regime from FY 2024-25 onwards. You can switch regimes when filing your ITR, but TDS already deducted under the employer's regime cannot be recovered mid-year — only as a refund when you file returns. Use our tax estimator to know your exact monthly TDS before the financial year begins.

❓ FAQs

Tax Estimator FAQs

Under the new regime (Budget 2026), there is zero tax up to Rs.12 lakh due to the enhanced 87A rebate. If your total deductions (HRA + 80C + home loan + NPS) exceed Rs.3.75L, old regime may save more. Use this calculator to compare.

Advertisement