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Income Tax Regime Calculator

Compare personal income tax liabilities under the Old vs. New Tax Regime for FY 2026-27.

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Methodology Disclaimer

Calculations are illustrative only and based on baseline regulatory slabs. Not a substitute for a signed filing or direct CA advisory review.

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Maximum deduction is ₹1,50,000 under 80C.

Calculation Summary

Tax under New Regime:71,500
Tax under Old Regime:1,06,600
Preferred Option:New Regime (Saves ₹35,100)

The New Regime standard deduction is set to ₹75,000 with no deductions allowed. The Old Regime allows standard deduction of ₹50,000 plus 80C and HRA deductions. A 4% education cess is included in both totals.

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Calculation Methodology

Calculates estimated personal income tax liabilities based on the standard slabs for FY 2026-27. Under the New Regime (Sec 115BAC), standard deduction is set to ₹75,000 with a tax-free threshold of ₹7,00,000 (after 87A rebate). Under the Old Regime, standard deduction is ₹50,000 with deductions allowed under Section 80C and HRA options.

Related service link:Direct Taxation & Income Tax
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Frequently Answered Queries

Is HRA deduction allowed under the New Tax Regime?

No. Under the New Tax Regime (Section 115BAC), standard deductions like HRA, LTA, and Section 80C are completely disallowed. Only standard deduction of ₹75,000 is permitted.

How does the Section 87A rebate work in the New Regime?

For individuals opting for the New Regime, if their net taxable income (gross income minus standard deduction) is up to ₹7,00,000, they qualify for a 100% tax rebate, reducing net tax payable to nil.

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