India Income Tax Calculator (New Tax Regime FY 2026-27)
Calculate Indian salaried resident personal income tax under Section 115BAC (New Tax Regime) for FY 2026-27, including the standard salary deduction and Section 87A rebate.
How It Works & Methodology
Computes income tax liability for resident salaried individuals in India under the default New Tax Regime (Section 115BAC of the Income-tax Act, 1961) for Financial Year 2026-27 (Assessment Year 2027-28).
Key Assumptions & Scope:
- Calculates tax strictly under the default New Tax Regime (Section 115BAC) for salaried resident individuals.
- Automatically applies the statutory ₹75,000 standard deduction for salaried individuals.
- Includes the 4% Health and Education Cess on tax payable, and Section 87A tax rebate for taxable income up to ₹7,00,000.
- Old tax regime (with Chapter VI-A deductions like 80C, 80D, HRA) and surcharge on taxable income above ₹50 lakh are excluded.
Frequently Asked Questions
What is the standard deduction for salaried employees under the New Regime?
Under the latest Finance Act amendments for the New Tax Regime, salaried individuals and pensioners receive a statutory standard deduction of ₹75,000 from gross salary income.
How does the Section 87A rebate work under the New Tax Regime?
Resident individuals with a total taxable income not exceeding ₹7,00,000 are eligible for a tax rebate of up to ₹25,000 under Section 87A, resulting in zero tax liability for taxable incomes up to ₹7 lakh (effectively ₹7.75 lakh gross after the ₹75,000 standard deduction).
Why does this calculator use the New Tax Regime instead of the Old Regime?
The New Tax Regime under Section 115BAC is the official default tax regime in India with simplified, lower slab rates for ordinary salaried taxpayers.