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Income Tax Calculator

FY 2025-26 / AY 2026-27 (same slabs apply for FY 2026-27). Budget 2025 new regime — zero tax up to ₹12 lakh via ₹60,000 rebate under Section 87A, with marginal relief just above ₹12L.

Recommendation · FY 2025-26 & FY 2026-27
New Regime saves ₹1,11,800

Based on your inputs. Budget 2025 gives zero tax up to ₹12L (₹12.75L for salaried) under the new regime.

New regime
₹0
Old regime
₹1,11,800

New Regime

Best
Total Tax
₹0
Effective rate: 0.00% · Take home ₹12,00,000
Gross income₹12,00,000
Standard deduction₹75,000
Total deductions₹75,000
Taxable income₹11,25,000
Tax before rebate₹52,500
Section 87A rebate- ₹52,500
Surcharge₹0
Health & Ed. Cess (4%)₹0

Old Regime

Total Tax
₹1,11,800
Effective rate: 9.32% · Take home ₹10,88,200
Gross income₹12,00,000
Standard deduction₹50,000
Total deductions₹2,25,000
Taxable income₹9,75,000
Tax before rebate₹1,07,500
Section 87A rebate- ₹0
Surcharge₹0
Health & Ed. Cess (4%)₹4,300

New Regime slabs — Budget 2025

₹0 – ₹4LNil
₹4L – ₹8L5%
₹8L – ₹12L10%
₹12L – ₹16L15%
₹16L – ₹20L20%
₹20L – ₹24L25%
Above ₹24L30%

Key benefits (New regime)

  • Section 87A rebate up to ₹60,000 — zero tax on taxable income up to ₹12L.
  • Standard deduction of ₹75,000 for salaried → tax-free up to ₹12.75L.
  • Marginal relief avoids a cliff just above ₹12L.
  • 4% Health & Education Cess; surcharge applies above ₹50L (capped at 25%).

Income Tax FAQs — FY 2025-26 & FY 2026-27

Is income up to ₹12 lakh tax-free in FY 2025-26?

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Yes. Under the new tax regime (Budget 2025, effective FY 2025-26 and FY 2026-27), taxable income up to ₹12 lakh attracts zero tax via the enhanced Section 87A rebate of ₹60,000. For salaried taxpayers, the ₹75,000 standard deduction extends this to ₹12.75 lakh gross.

What is marginal relief above ₹12 lakh?

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Marginal relief caps your tax at the amount by which taxable income exceeds ₹12 lakh. For example, at ₹12.10L taxable income, tax is ₹10,000 instead of the slab-calculated ₹61,500.

Old or new regime — which should I choose?

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Choose new if you claim few deductions. Choose old only if your total deductions (80C, 80D, HRA, home loan interest, NPS) exceed roughly ₹4 lakh and offset the new regime's lower rates. Salaried people with moderate rent and basic 80C usually prefer new.

Is standard deduction available in both regimes?

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Yes. Salaried taxpayers and pensioners get ₹75,000 under the new regime and ₹50,000 under the old regime.

Does the calculator include surcharge and cess?

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Yes. It applies surcharge (10% above ₹50L, 15% above ₹1Cr, 25% above ₹2Cr; capped at 25% in the new regime) and the 4% Health and Education Cess on the final tax.

Is the calculator valid for FY 2026-27?

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Yes. Budget 2025 slabs apply for both FY 2025-26 and FY 2026-27 since no subsequent Budget has changed them.