Method, example and interpretation · Revised 16 October 2026
Use the tax year and income definition before comparing regimes
This is a financial-year estimate for a resident individual below sixty with ordinary slab-rate taxable income up to ₹50 lakh. It is not an income-tax return preparer. Calculations use the latest supported rules for FY 2026–27 automatically.
Enter taxable income, not automatically gross salary
Deduct only the deductions you are eligible to claim under the selected regime before entering the amount. The tool does not automatically deduct a standard deduction from taxable income again. Rebate is applied before the 4% health and education cess. For the new regime, the model includes marginal rebate relief immediately above the applicable rebate-income threshold.
Scope of the comparison
The new-regime FY 2026–27 model uses the ₹4 lakh initial band and a rebate threshold of ₹12 lakh. The old-regime model assumes the below-sixty basic exemption. Capital gains and other special-rate income, senior-citizen bands, surcharge above ₹50 lakh and deductions requiring individual facts are outside this estimate.
Other tools on this page
GST mode distinguishes adding tax to a base price from extracting tax already included in a total. Salary mode reconciles CTC into cash components, employer PF and gratuity provision, and labels pay before income tax. HRA applies the least-of-three calculation; the selected city category and salary definition affect the exemption. Check eligibility before treating an illustrated exemption as claimable.
Worked example
FY 2026–27, new regime, ordinary taxable income ₹12,00,000 for an eligible resident individual.
Estimated tax including cess: ₹0.
This result follows FY 2026–27 rules and the stated rebate assumptions. It does not mean ₹12 lakh of every type of income is tax-free.
Questions about this tool
Why does the old-regime result not subtract ₹50,000?
The input is already taxable income after deductions. Subtract an applicable salary standard deduction before entering the figure, rather than deducting it twice.
Is the salary result my final bank credit?
No. It is pay before income tax under the stated CTC assumptions. TDS, benefits, bonuses and state-specific deductions can change bank credit.