Income Tax Calculator

Section 87A gives a full tax rebate (making net tax zero) if your taxable income is at or below a threshold — ₹12,00,000 under the new regime (rebate up to ₹60,000) or ₹5,00,000 under the old regime (rebate up to ₹12,500) for FY 2026-27.

Under the new regime, Section 87A includes marginal relief specifically for this case, so it is not a cliff. At exactly ₹12,00,000 taxable income, tax is ₹0 (the ₹60,000 slab tax is fully rebated). At ₹12,00,001, marginal relief caps the tax at the amount by which income exceeds ₹12,00,000 — just ₹1, plus 4% cess, for a total of about ₹1.04 — not the full slab tax. This tapers off gradually: at ₹12,10,000 taxable income, tax is capped at ₹10,000 (the exact excess over ₹12,00,000) instead of the ₹61,500 slab tax would otherwise produce. Marginal relief keeps applying until slab tax on the full income falls back below the excess over ₹12,00,000 (around ₹12,70,588 taxable income for FY 2026-27), after which normal slab tax applies with no rebate at all. The old regime's ₹5,00,000 rebate threshold has no such relief — there, losing the rebate genuinely is an all-or-nothing cliff.

The new regime generally benefits taxpayers with fewer deductions; the old regime can be better if you claim substantial deductions (80C, HRA, home loan interest, etc.). Use the Old vs New Regime Comparison Calculator to compare both for your exact numbers.

The new regime's higher ₹75,000 standard deduction and ₹12,00,000 rebate threshold together wipe out tax on this income entirely. The old regime's lower ₹50,000 standard deduction (and no 80C deduction entered in this comparison) leaves a taxable income of ₹11,50,000 — well above the old regime's ₹5,00,000 rebate threshold — so full slab tax plus cess applies. Entering old-regime deductions (80C, etc.) would lower this gap, which is exactly what the Old vs New Regime Comparison Calculator is for.

After. The calculation order is slab tax, then rebate (if eligible), then 4% cess on whatever tax remains after the rebate — so a taxpayer who qualifies for the full rebate pays no cess either, since cess is 4% of zero.

No — this calculator applies the standard slabs for individuals below 60. Senior citizens (60-79) and super senior citizens (80+) have separate, more favorable exemption limits under the old regime, which aren't modeled here.

The financial year (FY 2026-27, 1 April 2026 to 31 March 2027) is the year the income is actually earned. The assessment year (AY 2027-28) is the following year in which that income is assessed and tax is filed — this calculator's slabs apply to income earned during FY 2026-27, filed in AY 2027-28.

No — the Union Budget presented in February 2026 did not change the income tax slabs or basic exemption limits for FY 2026-27; they remain the same as FY 2025-26.