Understanding income tax slabs is the first step towards accurate tax planning. Income tax in India is calculated based on slab rates prescribed by the Income Tax Department. The tax payable depends on your taxable income, age category, and the tax regime you choose.
TaxBachat's Income Tax Calculator helps salaried employees, business owners, freelancers, and senior citizens estimate their tax liability under both the old and new tax regimes in minutes.
What is the New Tax Regime?
The New Tax Regime is the default tax regime available to individual taxpayers in India. It offers lower tax rates across multiple income slabs while restricting most deductions and exemptions available under the old regime.
This regime is suitable for taxpayers who do not claim significant deductions such as Section 80C investments, HRA exemption, home loan interest deduction, or medical insurance deductions.
New Tax Regime Slab Rates for FY 2026-27
| Annual Taxable Income | Tax Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 to ₹8,00,000 | 5% |
| ₹8,00,001 to ₹12,00,000 | 10% |
| ₹12,00,001 to ₹16,00,000 | 15% |
| ₹16,00,001 to ₹20,00,000 | 20% |
| ₹20,00,001 to ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Zero Tax on Income Up to ₹12 Lakh
Under the new tax regime, resident individuals with taxable income up to ₹12 lakh may not have any tax liability due to the rebate available under Section 87A.
Additionally, salaried taxpayers receive a standard deduction of ₹75,000. This means salary income up to ₹12.75 lakh may result in zero tax liability, subject to applicable conditions.
Example
| Particulars | Amount |
|---|---|
| Gross Salary | ₹12,75,000 |
| Less: Standard Deduction | ₹75,000 |
| Taxable Income | ₹12,00,000 |
| Tax Before Rebate | ₹60,000 |
| Less: Rebate u/s 87A | ₹60,000 |
| Final Tax Liability | Nil |
Old Tax Regime Slab Rates for FY 2026-27
The old tax regime continues to provide various deductions and exemptions, including Section 80C, Section 80D, HRA exemption, and home loan benefits.
| Annual Taxable Income | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Income Tax Slabs for Senior Citizens
Applicable to resident individuals aged 60 years or above but below 80 years.
| Annual Taxable Income | Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Income Tax Slabs for Super Senior Citizens
Applicable to resident individuals aged 80 years or above.
| Annual Taxable Income | Tax Rate |
|---|---|
| Up to ₹5,00,000 | Nil |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Old Tax Regime vs New Tax Regime
Choosing the right tax regime depends on your income structure and tax-saving investments.
| Tax Benefit | Old Regime | New Regime |
|---|---|---|
| Section 87A Rebate | Available | Available |
| Standard Deduction | ₹50,000 | ₹75,000 |
| Section 80C Deduction | Allowed | Not Available |
| HRA Exemption | Allowed | Not Available |
| Home Loan Interest Deduction | Allowed | Restricted |
| Section 80D Medical Insurance | Allowed | Not Available |
| NPS Tax Benefit | Available | Limited |
| House Property Loss Set-Off | Allowed | Not Available |
Which Tax Regime Is Better?
The new tax regime generally benefits taxpayers who:
- Have limited investments under Section 80C
- Do not claim HRA exemption
- Do not have significant home loan deductions
- Prefer a simpler tax filing process
The old tax regime may be beneficial for taxpayers who regularly claim deductions and exemptions.
Use the TaxBachat Income Tax Calculator to compare both regimes and identify the option with lower tax liability.
How to Calculate Income Tax Online?
Follow these simple steps:
- Select the financial year.
- Choose your age category.
- Enter salary income and other sources of income.
- Add deductions and exemptions, if applicable.
- Compare tax liability under both tax regimes.
- Download your tax summary instantly.
Surcharge and Health & Education Cess
A surcharge applies when total taxable income exceeds specified limits. Health and Education Cess at 4% is levied on the total tax and surcharge amount.
| Taxable Income | Surcharge Rate |
|---|---|
| ₹50 Lakh to ₹1 Crore | 10% |
| ₹1 Crore to ₹2 Crore | 15% |
| ₹2 Crore to ₹5 Crore | 25% |
| Above ₹5 Crore | 25% under the new regime |
Why Use TaxBachat's Income Tax Calculator?
- Accurate tax calculations based on the latest income tax rules and slab rates
- Designed for taxpayers opting for the new tax regime
- Suitable for salaried employees, freelancers, business owners, and NRIs
- Detailed tax breakdown including rebate, cess, and surcharge
- Quick and easy-to-use interface for instant tax estimation
- Helps you understand your tax liability and plan your finances better
Use the TaxBachat Income Tax Calculator to calculate your taxes online, compare tax liability, and make informed financial decisions with confidence.