Compare Old vs New Tax Regime, calculate your net tax payable, and maximize your savings with our updated FY 2026-27 tax guide.
Making the right choice between tax regimes can be complex. Our visual guide helps you understand how gross income, deductions, and taxable amounts interact under the latest FY 2026-27 rules.
Old Regime
High Deductions, Standard Slabs
New Regime
Zero Tax up to ₹12 Lakh
Understanding your tax obligation starts with one essential question: How much tax do I actually owe? An Income Tax Calculator gives you that answer in seconds - no accountant needed.
An income tax calculator is a free online tool that helps individual taxpayers - including salaried employees, freelancers, and small business owners - estimate their tax liability for a given financial year. For FY 2026-27 (AY 2027-28), the Indian tax system continues to offer two tax regimes: the Old Tax Regime (with deductions and exemptions) and the New Tax Regime (with lower slab rates but fewer deductions).
Choosing the right regime can save you thousands of rupees. That's why using a reliable income tax calculator well before your tax deadline is not just helpful - it's essential.
Whether you are a first-time taxpayer trying to understand your tax obligations, or a seasoned professional comparing deduction options, this guide and calculator tool on StartBusiness is designed specifically for you.
An online income tax calculator takes your income inputs - such as your annual salary, house rent allowance (HRA), freelance income, deductions under Section 80C, 80D, home loan interest, etc. - and applies the applicable tax slab rates to calculate your estimated tax liability.
Add all income sources: salary, interest, rental, freelance/business income.
Subtract HRA exemption, LTA, standard deduction (Rs.50,000), and other exempt allowances.
80C (up to Rs.1.5L), 80D (health insurance), 80TTA, NPS 80CCD, home loan interest, etc.
Gross Total Income minus all exemptions and deductions.
Apply the applicable slab rates. Add 4% Health & Education Cess on the tax amount.
If eligible, apply the rebate to reduce or eliminate tax payable.
The result is your estimated net tax liability for FY 2026-27. You can then compare both regimes and decide which one is more beneficial for you. Also check our TDS Calculator to understand how much tax is being deducted at source from your income.
1. Under the new regime, standard deduction of Rs.75,000 is available to salaried individuals.
2. Rebate under Section 87A applies for income up to Rs.12,00,000 (effective tax = nil).
Warning: The above slab rates apply for FY 2026-27. Always verify the latest rates on the Income Tax Department website or consult a qualified chartered accountant for your specific situation.
A 4% Health & Education Cess is levied on the total income tax payable (including surcharge, if applicable). This cess applies to all taxpayers across both regimes and all income levels.
*Surcharge capped at 25% under New Regime.
Section 87A provides a tax rebate to resident individuals with lower taxable income. This means your effective tax liability could be zero even if your income falls in a taxable slab.
Under the new tax regime, if your taxable income (after standard deduction) does not exceed Rs.12 lakh, the rebate under Section 87A makes your tax liability zero. This is one of the biggest advantages of the new regime for middle-income earners in India.
Note: This rebate applies only on regular income. Special rate income like LTCG (Long-Term Capital Gains) under Section 112A is NOT covered under this rebate.
Using the income tax calculator online on StartBusiness.co.in is simple and takes less than 2 minutes. Here's how:
Once you've estimated your tax, you can plan your investments and deductions more effectively to minimise your tax outgo for FY 2026-27. Want to know your exact take-home pay? Use our Salary Calculator to get a full CTC-to-in-hand breakdown.
The standard income tax calculation formula for a salaried individual in India is:
Breaking it down step by step:
For business income, the formula may vary depending on the applicable presumptive taxation scheme (Section 44AD, 44ADA) or regular profit & loss account. Business owners should also track their GST liability alongside income tax for complete tax compliance. Check out our GST Calculator.
Annual CTC: Rs.14,00,000
Old Regime Tax
Rs.1,02,440
New Regime Tax (Recommended)
Rs.81,900
Savings: Rs.20,540
The choice between the old and new tax regime depends on your income level, deductions, and financial goals. Here's a structured comparison:
Always use an income tax calculator to run the numbers for your specific case before deciding. Need help deciding? Our tax experts at StartBusiness can analyze your finances and help you choose the optimal regime. If you're also planning a business loan this year, use our EMI Calculator to estimate your repayment impact on cash flow.
This income tax calculator for FY 2026-27 is designed for a wide range of Indian taxpayers:
Whatever your income source - salary, freelance, business, or investment - our calculate income tax online India tool helps you plan better and stay tax-compliant. New to business? Explore Private Limited Company Registration to give your venture a formal legal foundation.
StartBusiness.co.in offers a complete range of business registration, compliance, and financial calculator tools across India. Explore our most popular services:
In addition to our Income Tax Calculator for FY 2026-27, StartBusiness.co.in provides several other free financial calculators to help you manage your taxes and finances better:
Now that you understand India's tax slabs, deductions, and how the old vs new regime compare - use our free income tax calculator to find your exact liability in seconds. Make informed financial decisions and plan smarter for the year ahead.
Our tax experts and CAs can help you with tax planning, GST filings, and business compliance. Let us handle the complexity while you grow your business.
Talk to a CAFY 2026-27 Update
Standard deduction for salaried individuals is ₹75,000 in the New Regime and ₹50,000 in the Old Regime. These are applied automatically based on salary input.
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