Planning calculator
Income Tax Calculator
Two regimes, one income, and a difference that can run into six figures. This computes both for FY 2026-27 on exactly the same numbers, including rebate, surcharge and cess, and tells you which one costs less.
Your numbers
Cost to company minus employer PF and gratuity — the figure on your payslip.
Interest, rent and anything else taxed at slab rates.
Old-regime deductions
These only count under the old regime. Enter what you genuinely claim — not what you could claim if you bought something.
EPF, ELSS, PPF, life premium, tuition fees, home loan principal.
Section 24(b), capped at ₹2,00,000 for a self-occupied property.
Work this out on the HRA calculator, then bring the figure here.
80G donations, 80E education loan interest, 80TTA/TTB and the rest.
Section 80CCD(2) — deductible under both regimes.
Tax payable · new regime
Saves ₹1,45,600₹1,50,800
On these numbers the new regime costs ₹1,45,600 less for FY 2026-27. Effective rate on gross income: 8.38%.
- New regime
- ₹1,50,800
- Old regime
- ₹2,96,400
- Take home
- ₹16,49,200
New regime
Wider slabs, ₹75,000 standard deduction, almost no other deductions.
₹1,50,800
- Taxable income
- ₹17,25,000
- Deductions used
- ₹75,000
- Effective rate
- 8.38%
- After-tax income
- ₹16,49,200
Old regime
Narrower slabs and higher rates, but every deduction you can evidence.
₹2,96,400
- Taxable income
- ₹15,75,000
- Deductions used
- ₹2,25,000
- Effective rate
- 16.47%
- After-tax income
- ₹15,03,600
The two regimes, on your numbers
Total tax including surcharge and 4% health and education cess.
Slab by slab
How the liability is built up, one band at a time.
| Income slab | Rate | Taxable here | Tax |
|---|---|---|---|
| ₹0 – ₹4 L | 0% | ₹4,00,000 | ₹0 |
| ₹4 L – ₹8 L | 5% | ₹4,00,000 | ₹20,000 |
| ₹8 L – ₹12 L | 10% | ₹4,00,000 | ₹40,000 |
| ₹12 L – ₹16 L | 15% | ₹4,00,000 | ₹60,000 |
| ₹16 L – ₹20 L | 20% | ₹1,25,000 | ₹25,000 |
| Gross income | ₹18,00,000 | ||
| Less deductions | − ₹75,000 | ||
| Taxable income | ₹17,25,000 | ||
| Tax on slabs | ₹1,45,000 | ||
| Health & education cess (4%) | ₹5,800 | ||
| Total tax payable | ₹1,50,800 | ||
The arithmetic
How this calculator works
No proprietary model, no adjustment factor we will not name. This is the standard formula, applied exactly as written.
Taxable income = gross income − eligible deductions
Tax = Σ ( income in each slab × slab rate )
Less: rebate under section 87A
Plus: surcharge, where taxable income exceeds ₹50,00,000
Plus: health & education cess at 4% of (tax + surcharge)
Marginal relief caps the tax at the income that
crossed the threshold, at both the rebate and
surcharge boundaries.- slabs
- Seven bands under the new regime, three rates under the old
- 87A
- Rebate up to ₹60,000 (new) or ₹12,500 (old), below the income limit
- surcharge
- 10% / 15% / 25%, and 37% under the old regime only
- cess
- 4% on tax plus surcharge, with no exemption
- Standard deduction is ₹75,000 under the new regime and ₹50,000 under the old, applied automatically to salary income.
- Marginal relief is why someone earning ₹12,10,000 does not suddenly owe ₹61,500 — the tax cannot exceed the ₹10,000 by which the rebate threshold was crossed.
- Income is rounded to the nearest ₹10 before tax is computed, as required by section 288A.
Worked example
The same maths, on real numbers
A salaried taxpayer on ₹18,00,000, with ₹1,50,000 of 80C, ₹25,000 of health premium and no home loan.
| Gross salary | ₹18,00,000 |
|---|---|
| 80C | ₹1,50,000 |
| 80D | ₹25,000 |
| New regime tax | ₹1,50,800 |
| Old regime tax | ₹2,96,400 |
| Saved by choosing the new regime | ₹1,45,600 |
With ₹1,75,000 of deductions the old regime is not close. The break-even for this income sits well above ₹4,00,000 of genuine deductions — realistically it needs 80C fully used, a substantial HRA claim and home loan interest before the old regime starts to win. Anyone renting in a metro with a running home loan should check carefully; almost everyone else will find the new regime cheaper and considerably less work.
What this calculator assumes
- Figures are for FY 2026-27 (assessment year 2027-28), on rates unchanged from the previous year.
- The taxpayer is a resident individual, and all income shown is taxed at slab rates.
- Deductions entered are already within their statutory limits, which are also enforced by the sliders.
- The ₹75,000 and ₹50,000 standard deductions are applied automatically to salary.
What it deliberately leaves out
- Capital gains taxed at special rates are not covered — enter only slab-rate income.
- Business and professional income, presumptive taxation and AMT are outside scope.
- Relief under sections 89, 90 and 91, and set-off of losses, are not applied.
- This is an estimate for planning. Your actual return may differ, and it is not a substitute for filing advice.
Questions about the income tax calculation
If you are salaried with no business income, yes — you can choose afresh each year when you file, regardless of what you declared to payroll. Taxpayers with business income get one switch back to the old regime, and once they return to the new regime the choice is final.
There is no single figure — it moves with income. At ₹15,00,000 you need roughly ₹4,00,000 of genuine deductions; higher incomes need proportionally more. Rather than reason about it, enter your real numbers above and read the difference in rupees.
It stops a small rise in income causing a disproportionate rise in tax. Under the new regime, earning ₹12,10,000 instead of ₹12,00,000 would otherwise trigger ₹61,500 of tax on ₹10,000 of extra income; marginal relief caps the tax at ₹10,000. It applies again at each surcharge threshold, and it is applied automatically here.
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