₹12,00,000
₹0
total annual tax
₹1,63,800
total annual tax
| Component | New Regime | Old Regime |
|---|---|---|
| Gross Income | ₹12,00,000 | ₹12,00,000 |
| Total Deductions | ₹75,000 | ₹50,000 |
| Taxable Income | ₹11,25,000 | ₹11,50,000 |
| Tax (before rebate) | ₹52,500 | ₹1,57,500 |
| 87A Rebate | ₹52,500 | ₹0 |
| Surcharge | ₹0 | ₹0 |
| Health & Education Cess (4%) | ₹0 | ₹6,300 |
| Total Tax | ₹0 | ₹1,63,800 |
| Effective Tax Rate | 0% | 13.65% |
| Yearly In-Hand | ₹12,00,000 | ₹10,36,200 |
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Calculating income tax for FY 2026-27 requires applying two entirely different sets of slab rates, checking the Section 87A rebate, computing surcharge if income exceeds Rs 50 lakh, and adding the 4% cess. For most salaried employees, the question is simply which regime results in a lower final number. This calculator does both computations in parallel — with a slab-by-slab breakdown — so you see exactly where each rupee of tax comes from.
Under the New Regime, after deducting the Rs 75,000 standard deduction, income is taxed at the FY 2026-27 slabs: 0% up to Rs 4 lakh, 5% from Rs 4-8 lakh, 10% from Rs 8-12 lakh, 15% from Rs 12-16 lakh, 20% from Rs 16-20 lakh, 25% from Rs 20-24 lakh, and 30% above Rs 24 lakh. If taxable income is at or below Rs 12 lakh, the Section 87A rebate wipes out the computed tax entirely.
Under the Old Regime, deductions — 80C (up to Rs 1.5L), 80D, NPS under 80CCD(1B) (up to Rs 50K), HRA exemption, and home loan interest under Section 24(b) — are subtracted from gross income before applying age-based slabs. A smaller 87A rebate (up to Rs 5 lakh taxable income) applies here.
Surcharge on tax is applied at 10% (income Rs 50-100L), 15% (Rs 1-2Cr), 25% (Rs 2-5Cr), and 30% (above Rs 5Cr, Old Regime only). Finally, 4% health and education cess is added.
A senior software architect earning Rs 28 LPA verifying whether their 80C, HRA, and NPS deductions justify staying on the Old Regime.
A 65-year-old retired professional with pension income checking tax under the Old Regime using the senior citizen slab (no tax up to Rs 3 lakh).
A startup founder with Rs 35 lakh income from business wanting to see the slab-wise tax breakdown before paying advance tax.
A couple comparing individual income tax obligations to decide whether splitting investments between spouses optimizes the overall household tax.
Scope note: Calculations use FY 2026-27 New Regime slabs and Old Regime rates for Indian resident individuals. Does not model surcharge marginal relief near the Rs 50 lakh or Rs 1 crore thresholds, or special tax rates for special income types (LTCG, STCG, virtual digital assets). NRI taxation follows different rules. Consult a chartered accountant for complex income profiles.
Disclaimer: This calculator is for informational and educational purposes only and does not constitute financial, tax, or legal advice. Results are estimates based on publicly available tax slabs and formulas. Consult a qualified Chartered Accountant, tax professional, or financial advisor for guidance specific to your situation. Built and maintained by the WOWHOW Team with 14+ years of software development experience.
Enter your annual gross income and select your age group
Add deductions for Old Regime — 80C, 80D, HRA, NPS
View side-by-side comparison of Old vs New regime tax
Check the slab-wise breakdown and donut chart for tax vs take-home split
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