Income Tax Calculator
FY 2026-27Calculate your income tax under both old and new regime. Find out which regime saves you more tax.
New Tax Regime saves you ₹1.01L
New regime has lower rates and ₹75,000 standard deduction, but no other deductions allowed.
Income Details
Enter your total annual salary/CTC for quick estimate
12 Lakh
Your gross annual income from salary
Income from FDs, savings account, rental income, etc.
Deductions (Old Regime Only)
These deductions are NOT available under new regime
1.50 Lakh
Max ₹1.5 lakh. Includes PPF, ELSS, LIC, EPF, tuition fees.
25 Thousand
Self/Family: ₹25K. Parents: ₹25K (₹50K if senior). Max ₹1L.
50 Thousand
Additional ₹50,000 for NPS (beyond 80C limit)
Calculate using our HRA Calculator
Max ₹2 lakh for self-occupied property
No upper limit - full interest on education loan
50-100% of donation based on organization
Max ₹10,000 for savings account interest
Max ₹5,000/month if you don't receive HRA
Any other eligible deductions (80U disability, 80DD dependent, etc.)
Tax Comparison: Old vs New Regime
| Particulars | New Regime | Old Regime |
|---|---|---|
| Gross Income | ₹12.0L | ₹12.0L |
| Standard Deduction | - ₹75.0K | - ₹50.0K |
| Other Deductions | Not Allowed | - ₹2.25L |
| Taxable Income | ₹11.3L | ₹9.25L |
| Tax on Income | ₹52.5K | ₹97.5K |
| Less: Rebate u/s 87A | - ₹52.5K | - ₹0 |
| SurchargeApplies only if taxable income > ₹50L | ₹0 | ₹0 |
| Health & Education Cess (4%) | ₹0 | ₹3,900 |
| Total Tax Payable | ₹0 | ₹1.01L |
| Monthly In-Hand (Approx) | ₹1.00L | ₹91.5K |
New Regime Tax Slabs (FY 2026-27)
Old Regime Tax Slabs (FY 2026-27)
Your Tax Breakdown: Step-by-Step
Here's exactly how your tax is calculated slab by slab. You don't pay the highest rate on your entire income - each portion is taxed at its own rate.
🆕New Regime Breakdown (Taxable: ₹11.3L)
| Income Slab | Rate | Amount | Tax |
|---|---|---|---|
| ₹0 - ₹4L | 0% | ₹4.00L | ₹0 |
| ₹4L - ₹8L | 5% | ₹4.00L | ₹20.0K |
| ₹8L - ₹12L | 10% | ₹3.25L | ₹32.5K |
| Tax Before Rebate | ₹52.5K | ||
| Less: Section 87A Rebate | - ₹52.5K | ||
| Add: Surcharge (N/A - income ≤ ₹50L) | ₹0 | ||
| Add: H&E Cess (4%) | + ₹0 | ||
| Total Tax Payable | ₹0 | ||
Effective Tax Rate: 0.00% | Marginal Rate: 10%
📋Old Regime Breakdown (Taxable: ₹9.25L)
| Income Slab | Rate | Amount | Tax |
|---|---|---|---|
| ₹0 - ₹2.5L | 0% | ₹2.50L | ₹0 |
| ₹2.5L - ₹5L | 5% | ₹2.50L | ₹12.5K |
| ₹5L - ₹10L | 20% | ₹4.25L | ₹85.0K |
| Tax Before Rebate | ₹97.5K | ||
| Add: Surcharge (N/A - income ≤ ₹50L) | ₹0 | ||
| Add: H&E Cess (4%) | + ₹3,900 | ||
| Total Tax Payable | ₹1.01L | ||
Effective Tax Rate: 8.45% | Marginal Rate: 20%
Standard Deduction
₹75,000 (New Regime) or ₹50,000 (Old Regime) is automatically deducted from your gross income. No proof needed. Already included in taxable income calculation.
Section 87A Rebate
If taxable income ≤ ₹12L (new regime), you get up to ₹60,000 rebate. Result: zero tax for income up to ₹12.75L (₹12L + ₹75K standard deduction).
Top Tax-Saving Strategies That Actually Work (Old Regime)
If you're using the old regime, these are the most effective ways to reduce your taxable income. All limits mentioned are as per FY 2026-27 tax laws. Use the calculator inputs above to see your personalized tax savings.
Section 80C: Save Up to ₹1.5 Lakh
PPF, ELSS mutual funds, EPF, life insurance premiums, principal repayment on home loan, NSC, 5-year FD.
Section 80CCD(1B): Extra ₹50,000 via NPS
Invest in NPS (National Pension System) to claim an additional ₹50,000 deduction over and above Section 80C.
Section 80D: Health Insurance Premium
₹25,000 for self/family (₹50K if senior citizen). Additional ₹25K for parents (₹50K if senior citizens). Max: ₹1 lakh.
HRA Exemption: For Salaried Employees
If you pay rent, claim HRA exemption. Calculated as lowest of: Actual HRA, Rent - 10% salary, or 50% salary (metros) / 40% (non-metros).
Section 24: Home Loan Interest Deduction
Claim up to ₹2 lakh on interest paid on home loan for self-occupied property. Only interest component qualifies (not principal, which goes under 80C).
Section 80E: Education Loan Interest
Claim full interest paid on education loan (for self, spouse, children). No upper limit. Available for 8 years from loan start or until interest is paid, whichever is earlier.
Section 80G: Donations to Charity
Donations to approved charitable institutions and relief funds qualify for 50% or 100% deduction based on organization type. PM CARES, CM Relief Funds get 100% deduction.
Section 80TTA: Savings Account Interest
Deduction up to ₹10,000 on interest from savings account, post office savings, or cooperative banks. For senior citizens (60+), use Section 80TTB with ₹50,000 limit.
Section 80GG: Rent Paid Without HRA
If you don't receive HRA but pay rent, claim this. Deduction = lower of: Rent - 10% of income, ₹5,000/month, or 25% of total income. You must not own house in city of work.
Maximum Possible Tax Savings: By combining all major deductions (80C: ₹1.5L + 80CCD: ₹50K + 80D: ₹1L + HRA: ₹3L + Sec 24: ₹2L + 80E: ₹50K + 80G: ₹25K + 80TTA: ₹10K + 80GG: ₹60K), you can reduce taxable income by up to ₹8.45 lakh and save ₹2.63 lakh in taxes (30% bracket).
Note: Some deductions are mutually exclusive (e.g., HRA and 80GG) and depend on your specific situation. Use the calculator inputs above to find your actual savings.
5 Tax Mistakes Costing You Thousands Every Year
These common mistakes lead to overpaying taxes or penalties. Here's what to avoid and how to fix them.
Mistake #1: Not Comparing Both Tax Regimes
The Problem: Blindly choosing new regime because "lower rates" sound better, without calculating actual tax for your situation.
Real Cost: Someone earning ₹12L with ₹1.5L in 80C + ₹50K NPS pays ₹59,280 in old regime vs ₹85,200 in new regime. Loss: ₹25,920/year
The Fix: Use this calculator every year. If you have deductions exceeding ₹2.5L (80C + HRA + home loan interest), old regime usually wins.
Mistake #2: Ignoring Section 80CCD(1B) NPS Benefit
The Problem: Most people max out Section 80C (₹1.5L) but forget they can claim an additional ₹50,000 via NPS under 80CCD(1B).
Real Cost: Missing this deduction costs you ₹15,600/year (₹50K × 31.2% effective rate).
The Fix: Invest ₹50,000 in NPS Tier 1 account. It's separate from 80C limit. Only catch: locked until retirement (age 60).
Mistake #3: Not Claiming HRA When You Pay Rent
The Problem: You pay ₹20,000/month rent but don't claim HRA exemption because "it's complicated" or you think PAN of landlord is mandatory.
Real Cost: On ₹10L salary paying ₹20K rent in metro, you miss out on ~₹1.5L HRA exemption. Extra tax: ₹46,800/year
The Fix: PAN is only needed if annual rent exceeds ₹1 lakh. Keep rent receipts. Claim HRA even if it's only declared to employer (no separate filing needed).
Mistake #4: Paying Tax on Fully Exempt Income
The Problem: Not knowing that LTA (Leave Travel Allowance), meal coupons (₹50/day), newspaper/phone bills, and transport allowance (₹1,600/month) are fully exempt.
Real Cost: If your salary structure doesn't optimize these allowances, you pay tax on money that could be tax-free. Potential loss: ₹10K-25K/year
The Fix: Ask HR to restructure salary with maximum exempt allowances. Submit bills for reimbursements (fuel, phone, newspapers). Claim LTA every 2 years.
Mistake #5: Last-Minute Tax Planning in March
The Problem: You rush to invest in 80C instruments in March, often picking unsuitable products (poor-return ULIPs, high-premium insurance) just to save tax.
Real Cost: A 20-year ULIP with 4-5% returns vs ELSS with 12-15% returns. Over 20 years on ₹1.5L annual investment: ₹45 lakh+ opportunity loss
The Fix: Plan in April. Set up monthly SIPs in ELSS (₹12,500/month). Use EPF, PPF (mid-year lumpsum), or 5-year FD. Avoid insurance just for tax saving.
💡 Pro Tip: The new regime is truly "simple" only if you have zero deductions. Most salaried Indians benefit from old regime once they factor in EPF (auto-deducted), HRA (if renting), and basic 80C investments.
This calculator shows exact comparison. Always run the numbers before choosing your regime at the start of the financial year.
Income vs Tax Payable: Quick Reference (FY 2026-27)
Comparison assumes new regime with only standard deduction, old regime with ₹1.5L (80C) + ₹50K (80CCD) + ₹50K (80D) deductions.
| Annual Gross Income | New Regime Tax Payable | Old Regime Tax Payable* | Better Regime | Monthly In-Hand |
|---|---|---|---|---|
| ₹6,00,000 | ₹0 † | ₹0 | Same | ₹50,000 |
| ₹8,00,000 | ₹0 † | ₹0 | Same | ₹66,667 |
| ₹10,00,000 | ₹0 † | ₹54,600 | New | ₹83,333 |
| ₹12,00,000 | ₹0 † | ₹96,200 | New | ₹1,00,000 |
| ₹15,00,000 | ₹97,500 | ₹1,58,600 | New | ₹1,16,875 |
| ₹20,00,000 | ₹1,92,400 | ₹2,62,600 | New | ₹1,50,633 |
| ₹25,00,000 | ₹3,19,800 | ₹4,18,600 | New | ₹1,81,683 |
| ₹30,00,000 | ₹4,52,400 | ₹5,74,600 | New | ₹2,12,300 |
| ₹50,00,000 | ₹10,76,400 | ₹11,98,600 | New | ₹3,26,967 |
† Zero Tax Up to ₹12.75L
Under new regime, if gross income ≤ ₹12.75 lakh (taxable ₹12L after ₹75K SD), Section 87A rebate makes your tax zero. This is the sweet spot for new regime.
* Old Regime Assumptions
Assumes ₹1.5L (80C) + ₹50K (80CCD-NPS) + ₹50K (80D) deductions. With HRA or home loan interest, old regime becomes even more beneficial at lower incomes.
The Crossover Point
With ₹2.5L deductions, old regime wins below ₹8L (both zero tax). Above ₹10L, new regime wins due to ₹12L rebate limit. Between ₹8-10L, compare your actual situation.
Pro Insight: The new regime's advantage grows with income IF you don't have deductions. But if you're investing in 80C instruments anyway (EPF, PPF, ELSS), paying rent (HRA), or have a home loan, old regime remains competitive even at ₹20-25L income.