Income Tax Calculator 2026-27: Conquer the Indian Tax Maze
The Indian Income Tax system can be notoriously complex, especially with the parallel existence of the Old Tax Regime and the New Tax Regime. Our free online Income Tax Calculator is specifically engineered for the Financial Year 2026-27 (Assessment Year 2027-28), helping salaried professionals instantly determine which tax structure results in the highest take-home pay.
Old vs New Regime: Real-Time Comparison
Our dual-engine calculator computes your tax liability across both regimes simultaneously. Under the Old Regime, we rigorously calculate complex deductions like House Rent Allowance (HRA) using the strict "Minimum of Three" rule, along with Section 80C, 80D, LTA, and NPS contributions. Under the New Regime (the default), we apply the revised tax slabs and the enhanced ₹75,000 standard deduction to give you an apples-to-apples comparison.
Integrating Capital Gains
Unlike basic salary calculators, our tool natively supports Capital Gains Tax. You can input your Short Term Capital Gains (STCG) and Long Term Capital Gains (LTCG) from equity investments. The calculator correctly segregates these flat-rated taxes from your slab-based salary income, automatically applying the ₹1.25 Lakh exemption limit on LTCG before computing the 12.5% tax liability.
Frequently Asked Questions (FAQs)
Which is better in India: Old Tax Regime or New Tax Regime?
The better regime depends entirely on your eligible deductions. If you claim significant deductions like HRA (House Rent Allowance), Section 80C (up to ₹1.5L), Section 80D (Health Insurance), and Home Loan Interest, the Old Regime often saves more tax. If you do not have many investments or prefer higher take-home pay with less paperwork, the New Regime (default) is typically superior.
Are standard deductions applicable in the New Tax Regime?
Yes, following the recent budget updates, a standard deduction of ₹75,000 applies to salaried individuals under the New Tax Regime, up from the previous ₹50,000 limit.
How is HRA Exemption calculated in India?
HRA exemption under Section 10(13A) is calculated as the minimum of three figures: 1) Actual HRA received, 2) 50% of basic salary for metro cities (40% for non-metros), and 3) Actual rent paid minus 10% of basic salary. This deduction is only available under the Old Regime.
Can I claim 80C deductions under the New Tax Regime?
No. Major deductions such as Section 80C (EPF, PPF, ELSS, LIC), Section 80D (Health Insurance), and LTA cannot be claimed under the New Tax Regime.