The Indian Income Tax Guide
Every number this calculator uses, in one place — slab rates, the Section 87A rebate, marginal relief, surcharge bands, cess and the deductions that make the old regime worthwhile.
Income tax slabs
New Regime (default)
| Income slab | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹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% |
Same slabs for all ages. Section 115BAC, FY 2025-26 — unchanged for FY 2026-27 per Budget 2026.
Old Regime (below 60)
| Income slab | Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,000 – ₹5,00,000 | 5% |
| ₹5,00,000 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Optional regime — preserves deductions & exemptions.
Old regime — higher exemption for seniors
Senior citizen (60 – 80 years)
| Income slab | Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,000 – ₹5,00,000 | 5% |
| ₹5,00,000 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Super-senior citizen (80+ years)
| Income slab | Rate |
|---|---|
| Up to ₹5,00,000 | Nil |
| ₹5,00,000 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Standard deduction
A flat deduction for salaried individuals and pensioners — applied automatically, no proof needed.
New Regime
₹75,000
Old Regime
₹50,000
Section 87A rebate
A rebate that wipes out tax entirely for incomes below a threshold, for resident individuals.
New Regime
Zero tax up to ₹12L taxable
₹60K
Old Regime
Zero tax up to ₹5L taxable
₹12.5K
For salaried taxpayers, the ₹75,000 standard deduction pushes the new-regime zero-tax salary to ₹12,75,000.
Marginal relief explained
Just above the ₹12L rebate threshold, the new regime gives marginal relief so a tiny increase in income never triggers a disproportionate jump in tax. Your tax payable is capped at the amount of income exceeding the threshold.
| Taxable income | ₹12,10,000 |
| Rebate limit (tax-free) | ₹12,00,000 |
| Income exceeding limit | ₹10,000 |
| Tax per slabs (on ₹12.1L) | ₹61,500 |
| Tax payable after marginal relief | ₹10,000 |
Without marginal relief you would pay ₹61,500 + cess on ₹12.1L. With it, you pay just ₹10,000 (plus 4% cess) — the extra income above the limit. This calculator applies the same logic automatically.
Surcharge & cess
High incomes attract a surcharge on the tax amount. The new regime caps the top surcharge at 25%; the old regime goes up to 37%. A 4% Health & Education Cess applies to everyone, on tax plus surcharge.
| Total income | New | Old |
|---|---|---|
| Up to ₹50L | Nil | Nil |
| ₹50L – ₹1Cr | 10% | 10% |
| ₹1Cr – ₹2Cr | 15% | 15% |
| ₹2Cr – ₹5Cr | 25% | 25% |
| Above ₹5Cr | 25% | 37% |
Marginal relief on surcharge also applies at each threshold — the calculator handles it so the extra surcharge never exceeds the extra income above the limit.
Old-regime deductions cheat-sheet
These reduce taxable income only under the old regime. Stacking them is what can make the old regime beat the new one.
Section 80C
Max ₹1.5LEPF, PPF, ELSS, LIC, principal repayment, tuition fees
Section 80CCD(1B)
Max ₹50KAdditional NPS self-contribution
Section 80D
Max ₹1LHealth insurance premium (self & parents)
Section 24(b)
Max ₹2LHome loan interest (self-occupied)
HRA Exemption
VariesHouse Rent Allowance exempt portion
Section 80TTA / 80TTB
VariesSavings / deposit interest (₹10k, ₹50k for seniors)
Methodology & disclaimer
Tax is computed as: gross income − deductions = taxable income; slab rates applied progressively; Section 87A rebate and marginal relief applied; surcharge (with its own marginal relief) added for high incomes; 4% cess applied on tax plus surcharge.
- Rates reflect the Union Budget 2025 provisions for FY 2025-26 (AY 2026-27), which Budget 2026 left unchanged for FY 2026-27.
- The new regime is the default; the old regime is optional and preserves deductions & exemptions.
- Special-rate income (e.g. capital gains under 111A/112A) is not modelled, and rebate does not apply to such income.
- Figures are estimates for planning only and not a substitute for advice from a qualified tax professional.