The concept
What this models
This calculator estimates AY 2026–27 tax under India's new regime bands: nil to ₹4 lakh, then 5%, 10%, 15%, 20%, 25% and 30% bands. It does not model the old regime.
For an eligible resident individual, normal taxable income up to ₹12 lakh receives the Section 87A rebate. Marginal relief is applied immediately above that threshold, followed by 4% health and education cess.
The method
How to calculate estimated tax payable
Annual income minus the entered standard deduction gives taxable income. Each AY 2026–27 slab rate is applied only to income within that band. The Section 87A rebate or marginal relief is then applied where eligible, followed by 4% cess. Special-rate income, regime eligibility and surcharge are outside this model, so annual income is limited below the ₹50 lakh surcharge threshold.
AY 2026–27 new-regime rates run from 0% through 30%; eligible normal taxable income up to ₹12,00,000 receives the Section 87A rebate.
Worked example
India Income Tax Calculator example
A salaried annual income of ₹12,75,000 with a ₹75,000 standard deduction produces ₹12,00,000 taxable income and zero tax under the eligible AY 2026–27 Section 87A rebate.
This example explains the method. It does not recommend a financial action or predict an outcome.
Frequently asked
India Income Tax Calculator questions
Does this include the old tax regime?
No. This calculator estimates the AY 2026–27 new regime only.
What is the Section 87A rebate?
For an eligible resident individual, it can reduce new-regime tax on normal taxable income up to ₹12,00,000 to zero for AY 2026–27; marginal relief applies just above that threshold.
Does this account for surcharge or special-rate income?
No. The input is capped below the ₹50 lakh surcharge threshold, and capital gains or other special-rate income require a filing-specific calculation.
Do these rules change?
Yes. Slabs, deductions and rebate rules can change; this page identifies the assessment year and does not fetch future rules automatically.