This calculator uses the latest Indian income tax slabs for FY 2026-27. It includes standard deductions and calculates cess on tax. The results show your taxable income, tax liability, and take-home amount.
Key Insights:
Income tax is calculated on taxable income after deductions
Standard deduction of ₹50,000 is available to all
4% health & education cess is added to tax
Plan investments to minimize tax liability
Use tax-saving options under Section 80C
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Maximize Your Tax Savings
Explore tax-saving investment options under Section 80C. Compare PPF, ELSS, and other tax-saving instruments.
Understanding income tax calculation is essential for financial planning in India. Our free calculator helps you estimate your tax liability, take-home salary, and identify tax-saving opportunities for FY 2026-27.
Income Tax Slabs for FY 2026-27 (AY 2027-28)
India offers two tax regimes: Old Regime (with deductions) and New Regime (simpler with lower rates). Choose based on your income and deductions.
Old Tax Regime (with deductions)
Income Range
Tax Rate
Tax Amount
Up to ₹2,50,000
Nil
₹0
₹2,50,001 - ₹5,00,000
5%
₹12,500
₹5,00,001 - ₹10,00,000
20%
₹1,00,000
Above ₹10,00,000
30%
30% of income above ₹10 lakh
New Tax Regime (without exemptions, higher standard deduction)
Income Range
Tax Rate
Tax Amount
Up to ₹3,00,000
Nil
₹0
₹3,00,001 - ₹7,00,000
5%
₹20,000
₹7,00,001 - ₹10,00,000
10%
₹50,000
₹10,00,001 - ₹12,00,000
15%
₹80,000
₹12,00,001 - ₹15,00,000
20%
₹1,40,000
Above ₹15,00,000
30%
30% of income above ₹15 lakh
How Income Tax is Calculated
Gross Income: Total income from all sources
Deductions: Subtract exemptions and deductions
Taxable Income: Income after deductions
Tax Calculation: Apply tax slabs to taxable income
Cess Addition: Add 4% health & education cess
Final Tax: Total tax liability
Tax Regime Comparison
Feature
Old Tax Regime
New Tax Regime
Standard Deduction
₹50,000
₹50,000
Section 80C Deduction
Up to ₹1.5 lakh
Not available
HRA Exemption
Available
Not available
LTA Exemption
Available
Not available
Other Deductions
All available
Not available
Home Loan Interest
Up to ₹2 lakh
Not available
Suitability
High deductions, investments
Low deductions, simplicity
Standard Deduction and Exemptions (Old Regime)
Standard Deduction: ₹50,000 for all individuals
HRA Exemption: House rent allowance (metro: 50%, others: 40%)
LTA Exemption: Leave travel allowance (once in 4 years)
Conveyance Allowance: ₹19,200 per annum
Professional Tax: Varies by state
Tax-Saving Investments under Section 80C
Investment
Maximum Deduction
Lock-in Period
Expected Returns
PPF (Public Provident Fund)
₹1,50,000
15 years
7.1%
ELSS Mutual Funds
₹1,50,000
3 years
12-15%
Life Insurance Premium
₹1,50,000
N/A
Varies
Home Loan Principal
₹1,50,000
N/A
N/A
NPS (Tier 1)
₹1,50,000
Until retirement
8-12%
Other Tax Deductions
Section 80D: Medical insurance premium (₹25,000-50,000)
Choose Old Regime if you have significant deductions (HRA, 80C investments, home loan interest). Choose New Regime if you have minimal deductions and want lower tax rates with simplicity.
What is the difference between old and new tax regime?
Old regime allows deductions up to ₹3 lakh+ but has higher tax rates. New regime has lower rates but no deductions except ₹50,000 standard deduction. New regime is simpler for taxpayers with low deductions.
What is standard deduction?
Standard deduction is ₹50,000 that can be claimed by all individuals in both regimes without any proof. It reduces your taxable income.
How much tax will I save with 80C investments?
You can save up to ₹45,000 in tax (30% of ₹1.5 lakh) if you're in the 30% tax bracket. This benefit is only available in the old tax regime. Actual savings depend on your tax slab.
When should I file my income tax return?
ITR filing deadline is July 31 for most individuals. File early to avoid rush and potential technical issues.
Can I switch between tax regimes?
Yes, you can choose between old and new tax regime each year when filing your return. The choice is annual and not binding for future years.
Can I file ITR without Form 16?
Yes, you can file using your bank statements and investment proofs. However, Form 16 makes the process easier and more accurate.