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Income Tax Calculator FY 2026-27

Compare the Old and New Tax Regimes instantly. Plan your deductions and maximize your take-home salary for Assessment Year 2027-28.

edit_document Financial Details

Total salary before any deductions.

HRA, LTA, etc. (Applies to Old Regime only).

80C, 80D, Home Loan Int, etc. (Applies to Old Regime only).

info Standard Deduction of ₹75,000 (New) and ₹50,000 (Old) is auto-applied!

New Tax Regime

₹0

Default Regime

Old Tax Regime

₹0

With Deductions

You Save

₹0

by choosing New Regime

Tax Calculation Breakdown

Particulars New Tax Regime (₹) Old Tax Regime (₹)
Gross Income 0 0
Standard Deduction - ₹75,000 - ₹50,000
Exemptions & Deductions Not Allowed 0
Net Taxable Income 0 0
Computed Tax (Slabs) 0 0
Surcharge 0 0
Health & Ed. Cess (4%) 0 0
Total Tax Payable 0 0

Understanding Income Tax for FY 2026-27

Navigating the Indian tax system requires choosing between two fundamental tax frameworks: the New Tax Regime (which is now the default) and the Old Tax Regime. The best choice for you depends entirely on your investments, loans, and standard expenses.

New Tax Regime (Default)

Offers much lower tax rates and an enhanced Standard Deduction of ₹75,000. It also offers a higher Section 87A rebate, effectively making incomes up to ₹12 Lakh (approx. ₹12.75 Lakh CTC) tax-free.

  • No major deductions allowed (80C, HRA, LTA are void).
  • Broader tax slabs yielding a lower baseline tax.
  • Best for those who do not have home loans or significant tax-saving investments.

Old Tax Regime

Maintains the traditional higher tax rates but allows you to claim over 70 distinct exemptions and deductions. The Standard Deduction remains at ₹50,000.

  • Allows Section 80C (up to ₹1.5L), 80D, HRA, and Home Loan interest deductions.
  • Rebate under Section 87A is capped at incomes up to ₹5 Lakh.
  • Best for high-earners with aggressive tax-saving portfolios and ongoing home loans.

Frequently Asked Questions

Can I switch between the Old and New Tax Regimes? expand_more
For Salaried Individuals: Yes, you can choose between the two regimes every year when filing your ITR. You can even declare one regime to your employer for TDS purposes, but file under a different regime during ITR filing.

For Business Owners / Professionals: You can only switch out of the New Regime once in a lifetime. Once you opt out to the Old Regime, and then opt back in to the New Regime, you cannot change it again.
What is Marginal Relief? expand_more
Marginal relief is a tax buffer provided to taxpayers whose income slightly exceeds the rebate threshold. For example, under the New Regime, income up to ₹12 Lakh is tax-free due to rebate. If you earn ₹12,10,000, your tax without relief would suddenly jump to over ₹60,000. Marginal relief restricts your maximum tax payable to the amount of income that exceeds the ₹12 Lakh threshold (in this case, restricted to ₹10,000).