Model scope and reference starting points
Historical model: FY 2025–26 (AY 2026–27). Resident individuals with ordinary salary or regular employment-pension income only, up to ₹50 lakh gross annually. This is not a current-year rules update or an ITR calculator. Special-rate income (including capital gains), business income, non-resident rules, surcharge, family pension, and deductions other than those shown are not modeled. The standard deduction is applied automatically. Enter eligible deduction amounts, not payments that have not been checked for eligibility. Outputs include 4% cess and new-regime rebate-threshold marginal relief, before final statutory tax rounding.
Official references checked on 2026-10-15: Income Tax Department, salaried individuals for AY 2026–27 (slabs, rebate thresholds and cess), and Budget 2025 announcement (₹75,000 new-regime salary standard deduction and the ordinary-income qualification). These documentary checks are not a complete tax-law review or validation for your return. Check the applicable assessment year and official filing calculation.
A rebate-threshold example you can reproduce
With gross salary ₹12,75,000, the new-regime standard deduction gives taxable income ₹12,00,000, and the model applies the rebate. At gross salary ₹12,85,000, taxable income is ₹12,10,000: the slab calculation is ₹61,500, but marginal relief limits pre-cess tax to the ₹10,000 above the rebate threshold. After 4% cess, modeled tax is ₹10,400. This is a check of the displayed historical assumptions, not a filing determination.
Old vs. New Tax Regime — What Changed?
India now offers two ways to calculate income tax: the New Regime, which has lower slab rates but strips out most deductions, and the Old Regime, which has higher slab rates but allows deductions like 80C, 80D, and HRA. Since the New Regime became the default option, more taxpayers have been comparing both to see which results in a lower bill — which is exactly what this calculator does side by side.
New Regime Slabs (FY 2025-26)
| Income Slab | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
A standard deduction of ₹75,000 applies for salaried individuals and pensioners, and a Section 87A rebate brings tax to nil for taxable income up to ₹12,00,000.
Old Regime Slabs & Deductions
The Old Regime keeps its long-standing slabs: nil up to ₹2,50,000, 5% up to ₹5,00,000, 20% up to ₹10,00,000, and 30% above that (with higher exemption limits for senior and super-senior citizens). What makes it attractive for some taxpayers is the ability to claim deductions — up to ₹1,50,000 under Section 80C (EPF, PPF, ELSS, life insurance), health insurance premiums under Section 80D, and House Rent Allowance (HRA) exemption.
Which Regime Should You Choose?
Broadly, if you have few deductions to claim (little to no 80C investment, no HRA, no home loan interest), the New Regime's lower rates usually work out cheaper. If you have significant 80C investments, health insurance, and HRA, the Old Regime can still come out ahead. This calculator's side-by-side comparison is designed to answer this for your specific numbers rather than relying on a general rule of thumb.
What is GST and How Is It Calculated?
Establish the applicable rate separately. To add tax to a base price: tax = base × rate ÷ 100. To extract tax from an inclusive price: base = total ÷ (1 + rate ÷ 100). This tool performs arithmetic only; it does not determine supply classification, registration obligations, tax components or cess.