Income Tax Calculator for India

What is the New Tax Regime?

The New Tax Regime is a simplified tax structure designed to offer lower slab rates with fewer deductions and exemptions. The provisions related to the new tax regime are dealt with under Section 115BAC of the Income Tax Act, 1961. Under the Income Tax Act, 2025, the provisions of the new tax regime are dealt with under Section 202.

Although the new regime offers limited deductions and exemptions, it is often beneficial for middle-class taxpayers, salaried individuals, freelancers, professionals and assessees who do not have elaborate tax planning strategies or large tax-saving investments.

New Tax Regime Slab Rates for FY 2025-26 / AY 2026-27 and FY 2026-27

The following are the income tax slab rates under the new regime for FY 2025-26 and tax year 2026-27.

Zero Tax on Income Up to ₹12 Lakh: How it Works

For income up to ₹12 lakh, the effective tax liability can be reduced to zero under the new regime using the rebate available under Section 87A of the Income Tax Act, 1961. However, this rebate is available only for income charged under normal slab rates. Special-rate income such as capital gains and online gaming income is not eligible for this rebate.

Example: Salary Income of ₹12.75 Lakh Under the New Tax Regime

Old Tax Regime Slab Rates for FY 2025-26 / AY 2026-27

There have been no major changes in the old tax regime slabs over the past few years. The old regime continues to provide several deductions and exemptions, but the slab rates are stricter compared with the new regime.

Income Tax Slabs for Super Senior Citizens

The following income tax slabs apply to resident super senior citizens who have crossed 80 years of age under the old tax regime.

While the new regime offers beneficial slab rates with limited deductions, the old tax regime offers a wider range of deductions with stricter slab rates. Therefore, the most beneficial regime depends on your income level, age, deductions and financial profile.

Deductions Available Under the Old vs New Tax Regime

The table below compares popular deductions and tax benefits available under the old and new tax regimes. This comparison is especially useful for salaried individuals, freelancers, professionals and taxpayers who are deciding between simplified taxation and deduction-led tax planning.

How Much Tax Will You Pay? Salary-Wise Breakdown

The following comparison shows how much tax may be payable under the new vs old tax regime at different income levels and the potential savings available. These examples assume limited deductions and normal slab-rate income.

Under the new tax regime, taxpayers with taxable income up to ₹12 lakh may pay zero tax due to the rebate available under Section 87A. For higher income levels, the new regime generally results in lower tax liability compared with the old regime if the taxpayer does not claim major deductions.

How to Use the Income Tax Calculator for FY 2026-27 / AY 2027-28

The WealthSure Income Tax Calculator is designed to make tax estimation simple and intuitive. You can use it to compare your tax liability under the old and new tax regimes before filing your return.

1. Choose the financial year for which you want your taxes to be calculated.
2. Select your age category because old regime tax liability differs based on age groups.
3. Enter your salary before deductions and exemptions such as HRA, LTA and other allowances.
4. Add other income such as interest income, rental income, business income or professional income.
5. Enter house property income or loss, including home loan interest where applicable.
6. Add eligible tax-saving investments under sections such as 80C, 80D, 80G, 80E and other deductions.
7. Click on “Calculate Tax” to compare your old and new tax regime liability.
8. Review the recommended regime and potential tax savings shown in the result panel.

Income Tax Calculation Example for FY 2025-26 and FY 2026-27

Let us assume Ms. Neha has the following income for FY 2025-26: salary income of ₹15 lakh, savings bank interest of ₹7,000, freelancing business income of ₹50,000 and home loan interest paid for a self-occupied property of ₹1.5 lakh.

In this example, the new regime proves to be more beneficial despite the deductions available under the old regime. However, the best regime may change if the taxpayer has higher deductions, HRA exemption, NPS contribution, home loan deductions or other eligible benefits.

Surcharge and Education Cess

Surcharge refers to tax on tax. If your taxable income crosses ₹50 lakh, surcharge is calculated on your tax liability. Health and education cess is generally calculated at 4% on income tax plus surcharge, wherever applicable.

Income Tax Slab Rates: Historical Comparison from FY 2023-24 to FY 2025-26

The slab rates under the new tax regime have changed over recent financial years. The following tables show how the new regime slabs have evolved.

New Regime Tax Slabs: FY 2023-24

New Regime Tax Slabs: FY 2024-25

New Regime Tax Slabs: FY 2025-26

What is the WealthSure Income Tax Calculator?

The WealthSure Income Tax Calculator is a simple and easy-to-use online tool designed to estimate your tax liability according to the provisions and rules of the Income Tax Act, 1961. It helps you compare your estimated tax liability between the old and new tax regimes, making it easier to choose the more beneficial option before filing your income tax return.

The calculator is suitable for salaried individuals, freelancers, professionals, NRIs, small business owners and taxpayers with multiple income sources. It gives a practical estimate based on your income, deductions, age category and tax regime comparison.