India Income Tax (New vs Old)
Work out your income tax for tax year 2026-27 under the new and the old regime and see which one costs less.
India — Income-tax Act, 2025 (in force from 1 April 2026) and Finance Act, 2026: rates for resident individuals for tax year 2026-27, as in force on 10/24/2026.
Estimate for guidance only: check the official sources or a licensed professional before relying on it.
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Frequently asked questions
Which law applies to income earned from April 2026?
The Income-tax Act, 2025 applies from 1 April 2026 and replaces the Income-tax Act, 1961. The first tax year under the new Act runs from 1 April 2026 to 31 March 2027. Income earned up to 31 March 2026 is still assessed under the 1961 Act.
Is income up to ₹12 lakh really tax-free in the new regime?
Yes for income taxed at normal rates. The rebate under section 156 (old 87A) is up to ₹60,000, which equals the slab tax on ₹12 lakh. With the ₹75,000 standard deduction, a salary of up to ₹12.75 lakh pays no tax. Special-rate income such as capital gains does not get this rebate.
What are the new section numbers for 80C, 80D and 87A?
80C is now section 123 (with Schedule XV), 80CCD(1B) is section 124(3), 80D is section 126, 87A is section 156, 24(b) is section 22, 10(13A) is section 11 with Schedule III, 16 is section 19, 115BAC is section 202 and TDS on salary (192) is section 392.
When is the old regime better?
Usually only when your deductions and exemptions are large: a high HRA exemption, home-loan interest close to ₹2 lakh, full use of section 123 (old 80C), NPS and health insurance. The calculator compares both with your own numbers.
What does the calculator leave out?
It assumes a resident individual with income at normal slab rates. Capital gains, business income, agricultural income, let-out property, employer NPS contributions, perquisites and the lower surcharge on dividends and capital gains are not included.
How the India income tax calculator works
This calculator works out the income tax of a resident individual in India for tax year 2026-27 under both the new regime and the old regime, and then recommends the one that costs less. It suits salaried employees, pensioners and anyone with salary and interest income who wants to decide which regime to choose. From 1 April 2026 the Income-tax Act, 2025 replaces the Income-tax Act, 1961, and the old "previous year" and "assessment year" give way to a single "tax year". The page shows each section as "new section (old section)", for example section 123 (old 80C), so you can follow both numbering systems.
In the new regime (section 202, old 115BAC) the slabs are nil up to ₹4 lakh, then 5%, 10%, 15%, 20% and 25% in steps of ₹4 lakh, and 30% above ₹24 lakh. A standard deduction of ₹75,000 applies to salary. The rebate under section 156 (old 87A) is up to ₹60,000, so income up to ₹12 lakh pays no tax, with marginal relief just above that limit. Surcharge of 10%, 15% and 25% applies above ₹50 lakh, ₹1 crore and ₹2 crore, also with marginal relief. Health and Education Cess adds 4%, and the total income is rounded to ₹10 under section 516.
The old regime has slabs that depend on your age: the tax-free limit is ₹2.5 lakh, ₹3 lakh or ₹5 lakh, followed by 5%, 20% and 30%. It allows a ₹50,000 standard deduction, the HRA exemption (section 11 with Schedule III, old 10(13A)), professional tax, home-loan interest up to ₹2 lakh (section 22, old 24(b)), section 123 (old 80C) up to ₹1.5 lakh, section 124(3) (old 80CCD(1B)) up to ₹50,000 and section 126 (old 80D) up to ₹25,000 or ₹50,000. The rebate is ₹12,500 for income up to ₹5 lakh, the surcharge goes up to 37% and the same 4% cess applies.
Worked example: a salary of ₹15 lakh in Bengaluru, with ₹2.4 lakh of HRA, ₹3 lakh of rent, ₹6 lakh of basic salary and ₹2.25 lakh of deductions under sections 123, 124(3) and 126. The new regime costs ₹97,500, the old regime costs ₹1,13,360, and the new regime saves ₹15,860. This is an estimate: it leaves out capital gains and business income, so check the final figures with your Form 16 and the e-filing portal before you file.