Anvya AI · Free Tool
FY 2026-27 — Compare old vs new tax regime instantly
₹12,00,000 per year
What is the difference between the new and old tax regime in India?
The new tax regime (default from FY 2023-24) has lower slab rates but removes most exemptions (80C, HRA, LTA etc.). The old regime has higher rates but allows deductions. If your total deductions exceed approximately ₹3.75L, the old regime may result in lower tax.
What are the income tax slabs for FY 2025-26 under the new regime?
Under the new regime: 0% up to ₹3L; 5% from ₹3L–7L; 10% from ₹7L–10L; 15% from ₹10L–12L; 20% from ₹12L–15L; 30% above ₹15L. A rebate under Section 87A makes income up to ₹7L effectively tax-free.
What deductions are available under the old tax regime?
Major deductions include Section 80C (up to ₹1.5L for PF, PPF, ELSS, life insurance, home loan principal), 80D (health insurance premiums), HRA exemption, LTA, standard deduction of ₹50,000, and home loan interest under Section 24 (up to ₹2L).
What is TDS and how is it related to income tax?
TDS (Tax Deducted at Source) is tax withheld by your employer before crediting salary to you. At year-end, your total tax liability is calculated; if TDS exceeds the liability you get a refund via ITR. If TDS is less, you pay the difference as advance tax or self-assessment tax.
Who must file an ITR even if income is below the taxable limit?
You must file ITR even below the exemption limit if: you have foreign assets, deposited more than ₹1 crore in bank accounts, spent more than ₹2L on foreign travel, or have TDS deducted. Filing also helps claim TDS refunds and is required for visa applications.
Is this calculator accurate for all types of income?
This calculator is optimised for salaried income. For business income, capital gains, rental income, or freelance income (which have different rules), the computation can be more complex. Consult a CA or use the official Income Tax e-filing portal for a complete picture.
| Feature | Anvya AI | ClearTax / Tax2Win | IT Dept. calculator |
|---|---|---|---|
| Old vs. new regime side-by-side comparison | ✓ | ✓ | ✗ |
| FY 2025-26 updated slabs | ✓ | ✓ | ✓ |
| All major 80C/80D deductions | ✓ | ✓ | Partial |
| HRA exemption calculation | ✓ | ✓ | Partial |
| No account or signup needed | ✓ | ✗ | ✗ |
| No upsell to paid filing services | ✓ | ✗ | ✓ |
| Mobile-friendly instant results | ✓ | Partial | Partial |
This free income tax calculator helps salaried employees in India calculate their exact tax liability for FY 2026-27 (Assessment Year 2027-28) and compare the old and new tax regimes side by side. Enter your gross annual income, select your age category, and optionally add your deductions under sections 80C, 80D, HRA, and home loan interest to see the full picture.
Under the new regime for FY 2026-27, salaried individuals with gross income up to ₹12,75,000 pay zero income tax — thanks to the ₹75,000 standard deduction and the Section 87A rebate of ₹60,000 (applicable when net taxable income is ₹12 lakh or less). The revised tax slabs — starting with nil tax up to ₹4 lakh, then 5% from ₹4–8L, 10% from ₹8–12L, and a new 25% slab for ₹20–24L — make the new regime more attractive for most taxpayers who don't have large deductions.
The old regime remains relevant for individuals claiming significant deductions: Section 80C (EPF, PPF, ELSS, LIC premiums — up to ₹1.5L), Section 80D health insurance premiums (up to ₹25,000), HRA exemption for rent payers, and home loan interest deduction under Section 24 (up to ₹2L). If your total deductions exceed approximately ₹4–5 lakh, the old regime may still save more tax. Use the side-by-side comparison in this calculator to find your best option instantly.
New regime slabs for FY 2026-27: 0–4L: nil, 4–8L: 5%, 8–12L: 10%, 12–16L: 15%, 16–20L: 20%, 20–24L: 25%, above 24L: 30%. Standard deduction ₹75,000. Salaried individuals earning up to ₹12,75,000 gross pay zero tax.
The new regime is default and better for most salaried employees with fewer deductions. The old regime is still beneficial if you have large deductions (80C ₹1.5L, HRA, 80D, home loan interest) that together exceed the new regime benefit. Compare both instantly using this calculator.
Under the new regime, a ₹60,000 rebate under Section 87A applies if net taxable income (after ₹75k standard deduction) is ₹12 lakh or less — resulting in zero tax for salaried individuals earning up to ₹12,75,000 gross. Under the old regime, ₹12,500 rebate for income up to ₹5 lakh.
₹75,000 under the new tax regime and ₹50,000 under the old tax regime. This is automatically deducted from gross salary before calculating taxable income.
Surcharge on income exceeding ₹50 lakh: 50L–1Cr: 5%, 1Cr–2Cr: 15%, 2Cr–5Cr: 25%, above 5Cr: 37% (old) / 25% (new regime). Plus 4% Health & Education Cess on tax + surcharge.