India Income Tax Calculator FY 2026-27

How India income tax works in FY 2026-27 (new regime)

FY 2026-27 India income tax brackets

Applies to taxable income after the ₹75,000 standard deduction (salaried employees). Surcharge for income above ₹50 lakh not included. Source: Income Tax Department, incometaxindia.gov.in.

Frequently asked questions

How is India income tax calculated under the new regime in FY 2026-27?

Income up to ₹4,00,000 is tax-free. The next ₹4,00,000 (up to ₹8L) is taxed at 5%, the next ₹4,00,000 (up to ₹12L) at 10%, and so on up to 30% above ₹24,00,000. For salaried employees, a ₹75,000 standard deduction is subtracted from gross salary to arrive at taxable income before slabs are applied.

What is the Clause 156 rebate (formerly Section 87A)?

Clause 156 of the Income-tax Act, 2025 (formerly Section 87A of the Income Tax Act, 1961) provides a full rebate on income tax if your taxable income does not exceed ₹12,00,000. The maximum rebate is ₹60,000 — equal to the tax on exactly ₹12,00,000. If eligible, the rebate reduces your income tax liability to zero before the 4% cess is calculated.

What is Clause 156 marginal relief, and is there really no cliff?

There is no hard cliff. Clause 156 includes a marginal relief provision: when taxable income exceeds ₹12,00,000, tax is capped at the amount by which income exceeds that ceiling. So at gross ₹12,75,001 (taxable ₹12,00,001), the tax due is approximately ₹1 plus 4% cess — not ₹60,000+. Tax rises smoothly from ₹0 as income grows above ₹12,75,000, converging with normal slab rates at around taxable ₹12,70,588 (gross ≈ ₹13,46,000). Beyond that point, regular slab calculations apply.

What is the standard deduction for salaried employees in FY 2026-27?

Salaried employees and pensioners receive a flat ₹75,000 standard deduction under the new regime. This is subtracted from gross salary to arrive at taxable income before slabs are applied. It was increased from ₹50,000 to ₹75,000 effective FY 2025-26 and remains unchanged for FY 2026-27. Self-employed individuals and business owners are not entitled to this standard deduction under the new regime.

What is the Health & Education Cess?

The Health & Education Cess is a 4% charge levied on net income tax after the Clause 156 rebate. It is not a slab — it applies to the total tax payable. The cess funds public health and education schemes and has been at 4% since FY 2018-19.

New regime vs old regime — which is better?

The new regime generally benefits taxpayers with limited deductions. If your total deductions under 80C, 80D, HRA, LTA and other sections are substantial, the old regime may result in lower tax. The crossover point depends on your income and deduction profile. See our <a href="/blog/india-old-vs-new-regime-fy-2026-27/">India New Regime vs Old Regime guide</a> for a detailed comparison with worked examples. Consult a Chartered Accountant for personalised advice.

Does this calculator include surcharge?

No. Surcharge applies to incomes above ₹50,00,000 (10% on ₹50L–₹1Cr; 15% on ₹1Cr–₹2Cr; 25% on ₹2Cr–₹5Cr; 25% above ₹5Cr under the new regime cap). Surcharge is not included in this calculator. For incomes above ₹50 lakh, actual tax will be higher than shown.

When is the ITR filing deadline for FY 2026-27?

The Income Tax Return (ITR) filing deadline for salaried employees without audit requirements is 31 July 2027 (for income earned in FY 2026-27). The belated return deadline is 31 December 2027. Your employer must issue Form 16 by 15 June 2027. Under the new Income-tax Act, 2025, the year of earning is called the "Tax Year" — FY 2026-27 corresponds to Tax Year 2026-27.

Is this a professional tax estimate?

No. This calculator provides estimates for informational purposes only and does not constitute professional tax advice. Consult a Chartered Accountant (ICAI) or tax professional for advice specific to your situation.

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