This mirrors the "Computation of Total Income" section of the actual ITR form, so you can cross-check your own filing.
📢 Latest Tax Updates & Government Notices
Union Budget 2026: No change to New Regime slabs or rebate limits — FY 2025-26 rates carried forward unchanged into FY 2026-27 (AY 2027-28).
Section 87A rebate: New Regime — taxable income up to ₹12,00,000 is fully rebated (₹12,75,000 for salaried taxpayers after the ₹75,000 standard deduction). Old Regime — rebate applies up to ₹5,00,000.
Standard deduction: ₹75,000 under New Regime, ₹50,000 under Old Regime, for salaried individuals and pensioners.
ITR filing due date: 31 July (non-audit cases) for AY 2027-28, unless CBDT issues an extension notice closer to the date — always confirm on incometax.gov.in.
Default regime: New Tax Regime is the default. To opt for the Old Regime you must actively select it while filing (Form 10-IEA for those with business income).
This section is updated periodically. For binding, up-to-the-minute rules always cross-check with the official Income Tax Department or a CBDT circular.
New Tax Regime — Full Slab Table (FY 2026-27)
Annual Income Slab
Tax Rate
₹0 – ₹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%
Plus 4% Health & Education Cess on total tax. Surcharge applies above ₹50L income on a slab basis.
Old Tax Regime — Full Slab Table
Annual Income Slab
Tax Rate
₹0 – ₹2,50,000
Nil
₹2,50,001 – ₹5,00,000
5%
₹5,00,001 – ₹10,00,000
20%
Above ₹10,00,000
30%
Plus 4% Health & Education Cess. Old Regime allows deductions like 80C (₹1.5L), 80D (health insurance), HRA, home loan interest (Section 24b), and more — which the New Regime largely does not.
How Income Tax Is Calculated — Step by Step
Add up Salary Income — Basic + DA, HRA received, special allowances and bonus.
Subtract Standard Deduction — ₹75,000 (New) or ₹50,000 (Old).
Subtract HRA Exemption (Old Regime only) — the least of actual HRA received, rent paid minus 10% of basic, or 50%/40% of basic (metro/non-metro).
Add Income from House Property and Other Sources to get Gross Total Income.
Subtract Chapter VI-A deductions (Old Regime only) — 80C, 80D, 80CCD(1B), home loan interest (24b), professional tax and others — to get Total Taxable Income.
Apply slab rates to the taxable income, slab by slab (not flat on the whole amount).
Apply Section 87A rebate if taxable income is within the rebate threshold — this brings final tax to zero.
Add 4% Health & Education Cess on the tax computed above to get your Total Tax Liability.
Worked Example
Suppose your Basic+DA is ₹7,00,000, HRA received ₹2,80,000, special allowance ₹2,20,000 (Gross Salary ₹12,00,000), you pay ₹3,00,000 rent in a metro city, and claim the full ₹1,50,000 80C plus ₹25,000 80D.
New Regime
Old Regime
Gross Salary
₹12,00,000
₹12,00,000
Standard Deduction
−₹75,000
−₹50,000
HRA Exemption
Not allowed
−₹2,30,000
80C + 80D Deduction
Not allowed
−₹1,75,000
Taxable Income (before other income)
₹11,25,000
₹7,45,000
Tax Payable (with 4% cess)
₹0 (rebated)
≈ ₹63,700
In this example, the New Regime wins because taxable income stays under the ₹12L rebate threshold. Enter your own numbers in the calculator above to see your exact result.
Nil up to ₹4L, 5% for ₹4-8L, 10% for ₹8-12L, 15% for ₹12-16L, 20% for ₹16-20L, 25% for ₹20-24L, and 30% above ₹24L. A Section 87A rebate makes taxable income up to ₹12L effectively tax-free, and with the ₹75,000 standard deduction, salaried individuals earning up to ₹12.75L pay zero tax.
It depends on your deductions. If you claim large 80C, 80D, HRA or home loan interest deductions, the Old Regime can work out cheaper. If you claim little to no deductions, the New Regime is usually better. Use the calculator above to compare both for your exact numbers.
HRA exemption (Old Regime only) is the minimum of three amounts: actual HRA received from your employer, rent paid minus 10% of your basic salary, and 50% of basic salary if you live in a metro city (Delhi, Mumbai, Chennai, Kolkata) or 40% for other cities.
Yes. Since FY 2023-24, the New Regime is the default. If you want the Old Regime, you must actively opt in each year while filing your return (Form 10-IEA if you have business/professional income).
Salaried individuals with no business income can switch between regimes every financial year. Those with business or professional income can switch only once in their lifetime back to the Old Regime after opting for New.
Most exemptions and deductions are not available — 80C, 80D, HRA exemption, LTA, home loan interest (self-occupied), and most Chapter VI-A deductions. Employer's NPS contribution (80CCD(2)) is still allowed under both regimes.
Senior citizen slab benefits (higher basic exemption) apply only under the Old Regime — ₹3L for 60-80 years, ₹5L for 80+ years. The New Regime uses the same slabs for all age groups.
This tool estimates tax on salary-type income with the standard ITR fields. Freelancers and business owners should also account for presumptive taxation (Section 44ADA/44AD), advance tax, and GST separately — consult a CA for precise business tax planning.
Health & Education Cess is a mandatory 4% surcharge on your computed tax amount (not on income), used to fund government health and education schemes. It applies under both regimes.
⚠️
Tax rates shown are for FY 2026-27 (AY 2027-28) as per Union Budget 2026, verified July 2026. This tool mirrors the standard ITR "Computation of Total Income" fields but does not cover capital gains, multiple house properties, or business/professional income. Rules may change in future budgets — this is an illustrative estimate only, not tax advice. Please consult a chartered accountant or use the official Income Tax e-filing portal for your actual return.
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