Finance
Estimate your income tax under India's new tax regime, FY 2025-26 (AY 2026-27) — the current default regime.
Estimated tax payable
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Enter your annual income
Taxable income
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Cess (4%)
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Effective rate
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In-hand income
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Estimates only, based on the new tax regime slabs for FY 2025-26 (AY 2026-27) — the current default regime. Doesn't account for the old regime, capital gains, or other special-rate income. Confirm with a tax professional or the official Income Tax e-filing portal before filing.
A salaried individual with ₹10,00,000 gross annual income gets the ₹75,000 standard deduction, bringing taxable income to ₹9,25,000. Running that through the new-regime slabs gives a tax of ₹32,500 before rebate — but since taxable income is under ₹12,00,000, the Section 87A rebate wipes it out entirely, leaving zero tax payable.
The Section 87A rebate creates a genuine cliff effect at ₹12,00,000 taxable income under the new regime — income just under that threshold owes no tax at all, while income just over it starts owing tax on the full slab structure without the rebate cushioning it. Understanding exactly where your taxable income (after deductions) falls relative to that line has an outsized effect on your actual tax bill.
Nil up to ₹4 lakh, 5% from ₹4–8 lakh, 10% from ₹8–12 lakh, 15% from ₹12–16 lakh, 20% from ₹16–20 lakh, 25% from ₹20–24 lakh, and 30% above ₹24 lakh. This is the current default regime.
Under Section 87A, a rebate of up to ₹60,000 applies when net taxable income (after the standard deduction) is ₹12 lakh or less, which fully cancels out the tax on that range under the new regime.
Not quite — AY 2025-26 corresponds to income earned in FY 2024-25, which used a lower rebate threshold (₹7 lakh) and a different slab structure. This calculator uses the current FY 2025-26 (AY 2026-27) slabs, which apply to income earned in the year ending March 2026 and are what most people filing now actually need.
No — this calculator only covers the new regime, which is the default for most taxpayers. The old regime has different slabs and allows deductions like 80C and HRA, which this tool doesn't model.
Modern income tax is generally credited to the UK, introduced by William Pitt the Younger in 1798 to fund the Napoleonic Wars. India's own income tax system dates to 1860, introduced by the British colonial government, and was substantially rewritten after independence.