₹ Free Income Tax Calculator — AY 2026-27
by CA Tripti Girdhar
Compare Old vs New Regime · All income heads · Finance Act 2025
Instant comparison with both regimes side by side — Finance Act 2025 slabs.
Zero tax up to ₹12 lakh under New Regime. ₹12,500 rebate under Old Regime.
Calculate HRA exemption u/s 10(13A) based on city, rent paid, and salary.
Compute presumptive income for businesses and professionals without books.
STCG at 20%, LTCG at 12.5% on equity — post Budget 2024 rates.
Quarterly advance tax schedule with 234B & 234C interest calculation.
Income Tax AY 2026-27 — Finance Act 2025
For a ₹12 lakh salary in AY 2026-27, the New Regime is usually better — Section 87A gives a rebate of up to ₹60,000, making income up to ₹12 lakh effectively tax-free (after the ₹75,000 standard deduction). Under the Old Regime, you would need combined deductions (80C + HRA + 80D) exceeding roughly ₹3.75 lakh to match or beat the New Regime. Use Tillu Taxwala to compare both regimes with your exact figures instantly.
Under the New Regime (Finance Act 2025), Section 87A provides a rebate of up to ₹60,000, making total income up to ₹12 lakh completely tax-free. Under the Old Regime, the rebate is ₹12,500 for income up to ₹5 lakh. Note that the rebate does not apply to special-rate income like LTCG on equity (Sec 112A) or STCG (Sec 111A).
New Regime slabs per Finance Act 2025: Up to ₹4L — Nil; ₹4L–₹8L — 5%; ₹8L–₹12L — 10%; ₹12L–₹16L — 15%; ₹16L–₹20L — 20%; ₹20L–₹24L — 25%; Above ₹24L — 30%. Add 4% Health & Education Cess on tax payable. Standard deduction of ₹75,000 is available for salaried employees and pensioners.
No. HRA exemption under Section 10(13A) is not available under the New Tax Regime. If you pay substantial rent, the Old Regime may be more beneficial. Use the calculator to compare your actual tax liability in both regimes with and without HRA.
Under the New Regime (Sec 115BAC), very few deductions apply: Standard Deduction ₹75,000 for salaried/pensioners; Employer NPS u/s 80CCD(2) (up to 10%/14% of basic); 80JJAA employment deduction. Chapter VI-A deductions — 80C (₹1.5L), 80D (health insurance), 80E (education loan), 80G (donations), HRA, LTA — are NOT available in the New Regime.
Section 44AD is for businesses with turnover up to ₹3 crore (₹3.75Cr if 95%+ receipts are digital). Presumptive profit: 8% of turnover (6% for digital). Section 44ADA covers specified professionals (doctors, lawyers, CAs, engineers, architects) with gross receipts up to ₹75 lakh. Presumptive profit: 50% of receipts. Both exempt you from maintaining detailed account books.
Advance tax is required if your annual tax liability exceeds ₹10,000. Payment schedule for FY 2025-26: 15% by 15 Jun; 45% by 15 Sep; 75% by 15 Dec; 100% by 15 Mar 2026. Underpayment attracts interest under Section 234B (3% p.a.) and Section 234C (1% per month per instalment). Senior citizens with no business income are exempt.
The standard deduction for salaried employees and pensioners is ₹75,000 for FY 2025-26 / AY 2026-27 (increased from ₹50,000 as per Finance Act 2024). This deduction is available under both Old and New Regimes. Family pensioners get ₹25,000 standard deduction (up from ₹15,000).