Calculation Methodology & Legislation
How Your Calculation Works (India • FY 2026-27)
This calculation tool operates strictly in accordance with statutory tax brackets and financial schedules published by Income Tax Department (CBDT) for the FY 2026-27 fiscal tax year (Union Budget & Finance Act 2025/2026).
HRA exemption equals the lowest of: (1) Actual HRA received, (2) 50% of Basic Salary for metro cities (Delhi, Mumbai, Kolkata, Chennai) or 40% for non-metro, or (3) Rent paid minus 10% of Basic Salary.
Core Mathematical FormulaStatutory FY 2026-27
Tax Liability = Progressive Slab Tax (5%–30%) + 4% Health & Education Cess − Section 87A Rebate − Standard Deduction (₹75k)Statutory Allowances & Deductions
Basic Personal Allowance / Exemption
New Tax Regime standard deduction of ₹75,000 combined with Section 87A rebate provides zero tax liability up to ₹12.75 Lakhs gross.
Reliefs & Allowable Deductions
Under the Old Regime, Section 80C (₹1.5L), Section 80D (health insurance), and HRA Section 10(13A) provide extensive taxable income relief.
Statutory Authority Verified (FY 2026-27)Audited against published schedules from Income Tax Department (CBDT).