Audited against published schedules under the Income-tax Act, 1961 (as amended by Finance Acts) from Income Tax Department (CBDT).
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 (Income-tax Act, 1961 (as amended by Finance Acts)).
Under the default New Tax Regime, salaried taxpayers deduct ₹75,000 standard deduction. Tax is computed across 7 progressive slabs (0% to 30%). For net taxable income up to ₹12 Lakhs, Section 87A rebate completely eliminates tax liability, making ₹12.75 Lakhs gross salary 100% tax-free.
For a full breakdown of the 7 New Regime brackets and Section 87A rebate rules, read our Income tax slabs AY 2026-27 (full breakdown).
Tax Liability = Progressive Slab Tax (5%–30%) + 4% Health & Education Cess − Section 87A Rebate − Standard Deduction (₹75k)Official Statutory Tax Schedule (FY 2026-27)
| Bracket / Slab | Statutory Rate | Tax Treatment |
|---|---|---|
| ₹0 - ₹4,00,000 (0%) | 0% | Tax-Free Allowance |
| ₹4,00,001 - ₹8,00,000 (5%) | 5% | Progressive 5% |
| ₹8,00,001 - ₹12,00,000 (10%) | 10% | Progressive 10% |
| ₹12,00,001 - ₹16,00,000 (15%) | 15% | Progressive 15% |
| ₹16,00,001 - ₹20,00,000 (20%) | 20% | Progressive 20% |
| ₹20,00,001 - ₹24,00,000 (25%) | 25% | Progressive 25% |
| Above ₹24,00,000 (30%) | 30% | Progressive 30% |
Statutory Allowances & Deductions
New Tax Regime standard deduction of ₹75,000 combined with Section 87A rebate provides zero tax liability up to ₹12.75 Lakhs gross for salaried taxpayers.
Under the Old Regime, Section 80C (₹1.5L), Section 80D (health insurance), and HRA Section 10(13A) provide extensive taxable income relief.