Income Tax Tool

Income Tax Calculator

Estimate your income tax under the Old and New Tax Regimes and compare which option may result in lower tax.

Updated tax slabsOld vs New comparisonInstant calculation

Financial Year

Assessment Year: AY 2027–28

Calculations based on tax provisions applicable to the selected financial year.

Taxpayer Details

Age Category

Age-based exemption differences primarily apply under the Old Tax Regime.

Taxpayer Type

Individual

Other taxpayer types (HUF, Firm, Company) are not supported in this version.

Income Details

Income from Salary / Pension

₹

Enter your total salary/pension income

Income from House Property

₹

Can be negative (loss) where legally applicable

Business / Profession Income

₹

Net profit from business or profession

Other Sources

₹

Interest, dividends and other income taxable at normal rates

Gross Total Income₹0

Deductions & Exemptions

Section 80C

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EPF, PPF, ELSS, LIC, tuition fees, etc. (Max: ₹1,50,000)

Section 80D

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Medical insurance premium (self & family)

Section 80CCD(1B)

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Additional NPS contribution (Max: ₹50,000)

Section 80E

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Education loan interest (no statutory limit)

Section 80G

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Eligible donations (eligibility depends on donee)

HRA / Other Salary Exemptions

₹

Enter eligible HRA exemption already calculated

Home Loan Interest (Sec 24B)

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Self-occupied property (Max: ₹2,00,000)

Other Eligible Deductions

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Any other eligible deductions (eligibility and limits apply)

These deductions are available under the Old Tax Regime only. Most deductions are NOT available under the New Tax Regime.

Standard Deduction (Auto-Applied)

Old RegimeNot applicable (no salary income)

New RegimeNot applicable (no salary income)

Standard deduction is applied automatically based on your salary/pension income and selected financial year.

Live Tax Summary

Enter your income details to see live tax estimates

Income Tax Slabs for FY 2026–27

Income Range	Tax Rate
₹0 – ₹4,00,000	0%
₹4,00,000 – ₹8,00,000	5%
₹8,00,000 – ₹12,00,000	10%
₹12,00,000 – ₹16,00,000	15%
₹16,00,000 – ₹20,00,000	20%
₹20,00,000 – ₹24,00,000	25%
Above ₹24,00,000	30%

Standard Deduction: ₹75,000 for salary/pension income under New Regime

Section 87A Rebate: Up to ₹60,000 if taxable income ≤ ₹12,00,000

Cess: Health and Education Cess at 4% on tax + surcharge

Surcharge: Applicable on high incomes as per Income Tax Act

Frequently Asked Questions

The Old Tax Regime allows you to claim various deductions and exemptions (like Section 80C, 80D, HRA, etc.) but has higher tax rates. The New Tax Regime offers lower tax rates with fewer deductions. You can choose whichever results in lower tax for your situation.

It depends on your income and eligible deductions. Generally, if you have significant deductions (above ₹3-4 lakhs), the Old Regime may be better. If you have minimal deductions, the New Regime with its lower rates is usually preferable. Use this calculator to compare for your specific situation.

No. Section 80C deductions (PPF, ELSS, EPF, life insurance, etc.) are NOT available under the New Tax Regime. These are only claimable under the Old Tax Regime.

Yes. Standard deduction is available under both regimes. For FY 2025-26 onwards, it is ₹75,000 under the New Regime and ₹50,000 under the Old Regime for salary/pension income.

Section 87A provides a tax rebate for resident individuals with lower taxable income. Under the New Regime (FY 2025-26), you get a rebate up to ₹60,000 if taxable income is ₹12 lakh or less. Under the Old Regime, the rebate is up to ₹12,500 for income up to ₹5 lakh.

Yes. Salaried taxpayers can choose their preferred regime every financial year while filing their return. However, if you have business income, you can generally switch only once in your lifetime (with some exceptions).

No. This calculator is designed for income taxable at normal slab rates. Capital gains (short-term, long-term, equity, debt, etc.) are taxed at special rates and require separate computation. Please consult a tax professional for capital gains calculations.

No. This calculator provides estimates based on the information you enter and standard tax provisions. Actual tax liability may vary based on special circumstances, exemptions, deductions eligibility, residential status, and other factors. Always verify with a qualified Chartered Accountant or tax professional before filing.

Disclaimer

This calculator provides an estimate based on the information entered and the tax provisions configured for the selected financial year. Actual tax liability may vary depending on exemptions, deductions, special-rate income, surcharge, marginal relief, residential status, business income provisions, and other circumstances. Tax rules are subject to change with each Union Budget. Verify applicable provisions or consult a qualified Chartered Accountant or tax professional before filing your return. DraftLegalAI.com does not guarantee the accuracy of these estimates for your specific tax situation.

Calculations based on tax provisions applicable to FY 2026–27. Last updated for Budget 2025 provisions.

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