What are the new tax slabs for FY 2026-27?

Under the New Regime for FY 2026-27: Up to ₹4 lakh - Nil, ₹4-8 lakh - 5%, ₹8-12 lakh - 10%, ₹12-16 lakh - 15%, ₹16-20 lakh - 20%, ₹20-24 lakh - 25%, Above ₹24 lakh - 30%. Standard deduction is ₹75,000. Section 87A rebate available for income up to ₹12 lakh.

Which is better - Old regime or New regime for ₹12 lakh salary?

For ₹12 lakh salary: Under New Regime, you pay zero tax due to Section 87A rebate (income up to ₹12L is tax-free). Under Old Regime with full 80C (₹1.5L) + 80D (₹25K) + standard deduction (₹50K), tax would be approximately ₹78,000. New Regime is clearly better for ₹12 lakh income.

What is Section 87A rebate for FY 2026-27?

Section 87A provides tax rebate for lower-income individuals. Under New Regime: Full rebate up to ₹60,000 for taxable income up to ₹12 lakh (effectively zero tax). Under Old Regime: Rebate up to ₹12,500 for taxable income up to ₹5 lakh.

How to save income tax legally in India?

Key tax-saving methods: 1) Section 80C - up to ₹1.5L (PPF, ELSS, LIC, EPF, home loan principal), 2) Section 80D - health insurance premium (₹25K self + ₹25K parents), 3) HRA exemption for rent-paying employees, 4) Section 24b - home loan interest up to ₹2L, 5) NPS additional ₹50K under 80CCD(1B). These work only under Old Regime.

What is the standard deduction for FY 2026-27?

Standard deduction for FY 2026-27 is ₹75,000 under the New Tax Regime and ₹50,000 under the Old Tax Regime. This is automatically deducted from gross salary income before calculating taxable income. No proof or documentation is required.

Income Tax Calculator

FY 2026-27 (AY 2027-28)

Annual Income

Annual Income (Gross)

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Age Group

Deductions (Old Regime)

Section 80C (max ₹1.5L)

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Section 80D (Health Insurance)

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HRA Exemption

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Standard Deduction: ₹50,000 (Old) / ₹75,000 (New) applied automatically

New Regime (FY 2026-27)

Taxable Income ₹0

Tax Before Cess ₹0

Rebate u/s 87A ₹0

Health & Education Cess (4%) ₹0

Effective Tax Rate 0%

Total Tax Payable ₹0

Old Regime

Taxable Income ₹0

Tax Before Cess ₹0

Rebate u/s 87A ₹0

Health & Education Cess (4%) ₹0

Effective Tax Rate 0%

Total Tax Payable ₹0

How to Use

Enter your annual gross income
Select your age group
Enter deductions under relevant sections
Compare tax under both old and new regime

Income Tax Slabs FY 2026-27 — New vs Old Regime

Income Slab	New Regime	Old Regime
Up to ₹2.5L	Nil	Nil
₹2.5L - ₹4L	Nil	5%
₹4L - ₹5L	5%	5%
₹5L - ₹8L	5%	20%
₹8L - ₹10L	10%	20%
₹10L - ₹12L	10%	30%
₹12L - ₹16L	15%	30%
₹16L - ₹20L	20%	30%
₹20L - ₹24L	25%	30%
Above ₹24L	30%	30%

+ 4% Health & Education Cess on total tax

Frequently Asked Questions — Income Tax

Under New Regime: Up to ₹4L = Nil, ₹4-8L = 5%, ₹8-12L = 10%, ₹12-16L = 15%, ₹16-20L = 20%, ₹20-24L = 25%, Above ₹24L = 30%. Standard deduction of ₹75,000 is applied automatically. Section 87A rebate makes income up to ₹12 lakh effectively tax-free.

New Regime is better if your total deductions (80C + 80D + HRA + others) are less than ₹3.75 lakh. For salary up to ₹12L, New Regime gives zero tax. For salary above ₹15L with full deductions (80C: ₹1.5L + 80D: ₹50K + HRA: ₹2L+), Old Regime may save more. Use our calculator above to compare your exact situation.

Section 87A gives a rebate (direct reduction in tax) for lower-income earners. New Regime: Up to ₹60,000 rebate for taxable income ≤ ₹12L. Old Regime: Up to ₹12,500 rebate for taxable income ≤ ₹5L. This effectively means zero tax if your income is within these limits.

For ₹15L salary: Under New Regime, tax is ~₹1.17L. Under Old Regime with max deductions (80C: ₹1.5L, 80D: ₹25K, HRA: ₹1.5L, NPS 80CCD: ₹50K, home loan 24b: ₹2L), taxable income drops to ~₹8.5L, tax becomes ~₹65K. That saves ~₹52K. But you need genuine investments to claim these.

Yes. Under New Regime for FY 2026-27, salary income up to ₹12,75,000 (₹12L + ₹75K standard deduction) is effectively tax-free due to Section 87A rebate of ₹60,000. The rebate covers the full tax liability for taxable income up to ₹12 lakh.

Disclaimer: This calculator is for educational purposes only. Consult a financial advisor for investment decisions. Actual values may vary based on lender terms.