How this calculator works
Enter your annual taxable income and pick a regime. The calculator runs your income through that regime's slabs, checks whether the Section 87A rebate applies, and adds 4% Health & Education cess on whatever tax remains.
Under the New Regime, if your taxable income is ₹12,00,000 or less, the 87A rebate brings your tax to ₹0 entirely. Above ₹12 lakh, tax is computed normally through all six slabs, with no rebate.
Under the Old Regime, the rebate threshold is lower — ₹5,00,000. If your taxable income is ₹5 lakh or less, tax is ₹0. Above that, tax is computed normally through the three slabs.
Both regimes work the same way after the slab tax is determined: Total tax = Slab tax + 4% cess on slab tax.
New Regime slabs (FY 2026-27)
| Income slab | Rate |
|---|---|
| ₹0 – ₹4,00,000 | 0% |
| ₹4,00,000 – ₹8,00,000 | 5% |
| ₹8,00,000 – ₹12,00,000 | 10% |
| ₹12,00,000 – ₹16,00,000 | 15% |
| ₹16,00,000 – ₹20,00,000 | 20% |
| ₹20,00,000 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Section 87A rebate under the New Regime: if taxable income is ₹12,00,000 or less, tax payable is ₹0.
Old Regime slabs (unchanged for FY 2026-27)
| Income slab | Rate |
|---|---|
| ₹0 – ₹2,50,000 | 0% |
| ₹2,50,000 – ₹5,00,000 | 5% |
| ₹5,00,000 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Section 87A rebate under the Old Regime: if taxable income is ₹5,00,000 or less, tax payable is ₹0. This tool is for quick estimation only and is not a substitute for professional tax advice. For your specific situation, consult a practicing CA.
Shunya's CA team compares both regimes against your actual deductions and files whichever saves you more.
Get Your ITR Filed →Which tax regime should I choose — New or Old?
It depends on how many deductions and exemptions you claim. The New Regime has lower slab rates and a bigger Section 87A rebate (tax-free up to ₹12 lakh), but it drops most deductions like HRA, 80C, and home loan interest. The Old Regime has higher slab rates but lets you claim those deductions. If your eligible deductions are small, the New Regime usually wins. If you have significant deductions (large HRA, home loan interest, 80C investments), run the numbers under both regimes — this calculator lets you toggle and compare instantly.
Is income up to ₹12 lakh really tax-free under the New Regime?
Yes, via the Section 87A rebate — if your taxable income is ₹12,00,000 or less, the rebate wipes out your entire tax liability, bringing it to ₹0. But this is a cliff edge, not a gradual phase-out: if your taxable income is even ₹1 more than ₹12 lakh, you lose the rebate entirely and pay tax on the full slab structure from ₹4 lakh onward, not just tax on the amount above ₹12 lakh. Plan your income and deductions carefully around this threshold.
What is the Health & Education cess?
The Health & Education cess is an additional 4% charged on your total income tax (after any rebate), not on your income directly. It applies under both the New and Old Regimes and funds health and education initiatives. It's added after your slab-wise tax is computed — so a ₹1,05,000 slab tax becomes ₹1,09,200 after the 4% cess.
Can I switch between the New and Old Regime every year?
Salaried individuals with no business income can generally choose their preferred regime each financial year when filing their return, switching back and forth as it benefits them. Taxpayers with business or professional income face restrictions on how often they can switch, so check your specific situation before assuming you have unlimited flexibility.
Does Shunya help with income tax filing?
Yes — Shunya's CA team handles ITR filing end to end, including regime comparison, deduction optimization, and accurate computation. If this calculator shows a number you want help acting on, Shunya can file your return for you.
This tool is for quick estimation only and is not a substitute for professional tax advice. For your specific situation, consult a practicing CA.
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