Income Tax Calculator 2026-27

Yes, in the new regime. A salary of ₹12,75,000 less the ₹75,000 standard deduction leaves ₹12,00,000 of total income; the tax on that is cancelled by the rebate of up to ₹60,000 (section 156), so you pay ₹0. Just above, marginal relief keeps the tax from jumping: on ₹13,25,000 you pay ₹52,000, not the full slab tax.

Work it out for your own numbers: the new regime has lower rates, the old one more deductions. For the example on this page: The new regime costs ₹87,050 against ₹1,10,660 — ₹23,610 less for tax year 2026-27. The old regime would only match it with about ₹1,13,500 more in deductions. If you have no business income, you can choose afresh every year when you file your return (section 202(4)(b)).

It is the least of: the HRA you receive; the rent you pay less 10% of your basic pay and DA; and 50% of basic pay and DA in Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad, Bengaluru, or 40% elsewhere (Schedule III, Sl. No. 11 and rule 279 of the Income-tax Rules, 2026). In the example, that comes to ₹2,28,000. It is available only in the old regime.

The Income-tax Act, 2025 renumbered them from tax year 2026-27: 80C is now section 123 (with the list in Schedule XV), 80CCD is section 124, 80D is section 126, 80TTA and 80TTB are section 153, the 87A rebate is section 156, the new regime (115BAC) is section 202, and home-loan interest (24(b)) is section 22. The limits used here are the ones in the new Act.

Shares and equity funds held 12 months or less: 20% (section 196). Held longer: 12.5% on gains above ₹1,25,000 a year (section 198). Other assets held more than 24 months — gold, property, unlisted shares — 12.5% without indexation (section 197). Debt funds bought from 1 April 2023 are taxed at your slab rate whatever the holding period (section 76). With ₹9,00,000 of other income, ₹2,25,000 of long-term equity gains cost ₹13,000 in the new regime.

No. In the new regime the rebate can only cancel tax at slab rates (section 156(3)), so tax on gains at special rates is still payable. With ₹9,00,000 of other income and ₹2,00,000 of short-term equity gains, total income is ₹11,00,000 — under ₹12 lakh — yet the tax is ₹41,600: the slab-rate tax is rebated, the 20% on the gains is not. Any unused basic exemption is set against the gains first.

Capital losses and losses carried forward, the indexation choice for land or buildings bought before 23 July 2024 (section 197(3)), any special surcharge rate on capital gains for incomes above ₹50 lakh (the normal surcharge is applied), business or professional income, the value of perquisites such as a company car, relief for arrears of salary, agricultural income and income of non-residents. It covers one house. Home-loan interest on a home you live in is capped at ₹2,00,000 in the old regime. Check your final figures with Form 16, Form 26AS/AIS and, if in doubt, a tax adviser.