Understanding the FY 2025–26 tax-regime comparison
This calculator models FY 2025–26 (Assessment Year 2026–27) for an eligible resident salaried individual under 60 with ordinary slab-rate income up to ₹50 lakh. It is not an assessment of an individual's tax residence, eligibility for deductions, special-rate income, surcharge or tax-filing obligations.
How to use it
- Enter the gross annual salary you wish to model and only the old-regime deductions and exemptions that you have independently verified.
- Review the two estimated tax amounts and the difference displayed under the tool's stated assumptions.
- Check whether your income includes capital gains, other special-rate components, business earnings, non-salary income or rules outside the simplified model. If it does, do not rely on this comparison.
- Use the Income Tax Department's official calculator with your actual assessment year, age, residency, income and deductions before taking a tax or payroll decision.
What is different for AY 2026–27?
The new-regime slab bands for this assessment year start with nil tax up to ₹4 lakh of taxable income, followed by 5% from ₹4–8 lakh and 10% from ₹8–12 lakh. Subject to the statutory eligibility rules, the Section 87A rebate can eliminate eligible slab-rate tax at taxable income up to ₹12 lakh; marginal relief can apply immediately above that threshold. The calculation excludes special-rate income and several personal circumstances.
Frequently asked questions
Does ₹12 lakh mean every person earning up to that amount pays no tax?
No. Eligibility for the rebate, tax residence, special-rate income and the distinction between gross salary and taxable income matter. This simple tool does not establish personal eligibility.
Can I submit these estimates in my income-tax return?
No. They are only scenarios. Confirm the actual tax amount and filing position using the official Income Tax Department calculator and the applicable assessment-year instructions.
Can I use this page for FY 2026–27 or business income?
No. The page is specifically labelled FY 2025–26 / AY 2026–27. The current simplified model is designed for the stated salary-only scenario, not a different year or a full business-tax calculation.
Income Tax Department: salaried individuals, AY 2026–27 rates and rebate.