Income Tax Calculator India (FY 2025-26 / AY 2026-27) – Old vs New Tax Regime
Plan Your Taxes with Precision for AY 2026-27
Navigating the complexities of Indian tax laws requires more than just a basic understanding of your salary. With the Union Budget 2026 maintaining the push towards a simplified tax structure, taxpayers in India now face a critical choice: The Old Tax Regime or the New Tax Regime?
At CA SHIWALI & Co., we believe in empowering our clients with digital tools that provide instant clarity. Whether you are a salaried professional in South Delhi or a business owner managing GST compliance, understanding your effective tax liability is the first step toward wealth optimization.
Key Updates for Assessment Year 2026-27:
New Tax Regime Default: The New Regime continues to be the default choice, offering lower slab rates and a higher rebate under Section 87A.
Zero Tax up to ₹12 Lakh: Under the New Regime, individuals with a taxable income of up to ₹12,00,000 (after standard deduction) effectively pay zero tax.
Standard Deduction: Salaried individuals benefit from a ₹75,000 standard deduction in the New Regime and ₹50,000 in the Old Regime.
The Power of Deductions: The Old Regime remains beneficial for those with significant investments in 80C (LIC, PPF, ELSS), 80D (Health Insurance), and Home Loan Interest (Section 24b).
How to Use This Tax Calculator India
Our comprehensive tax tool is designed to provide a side-by-side comparison in seconds. Simply enter your gross annual income, rental earnings, and eligible investments. Once computed, you can Download a Branded PDF Report to review with your financial advisor or keep for your records.
CA SHIWALI & CO.
Comprehensive Tax Comparison AY 2026-27
Income Source
Deductions (For Old Regime)
Tax Assessment Report
Prepared for Client by CA Shiwali & Co.
| Component | New Regime | Old Regime |
|---|---|---|
| Gross Total Income | ||
| Standard Deduction | ₹ 75,000 | ₹ 50,000 |
| Total Deductions | ₹ 0 | |
| Taxable Income | ||
| TOTAL TAX (Inc. Cess) |
CA SHIWALI & CO.
Website: www.cashiwali.com | Phone: 9266032777
Disclaimer: This is an estimated report. Please consult us for formal filing.
Website: www.cashiwali.com | Phone: 9266032777
Disclaimer: This is an estimated report. Please consult us for formal filing.
You should check out too:
- To understand how tax is calculated, check the latest Income Tax Slabs in India.
Frequently Asked Questions: Income Tax AY 2026-27
1. Is the ₹12 Lakh zero-tax limit applicable to the Old Tax Regime?
No. The enhanced rebate under Section 87A, which effectively makes income up to ₹12,00,000 tax-free, is only available under the New Tax Regime. For the Old Tax Regime, the zero-tax threshold remains at ₹5,00,000 (taxable income after deductions). If you have a high income but few investments, the New Regime is likely your best option.
2. How much is the Standard Deduction for salaried individuals in 2026?
As per the latest provisions for AY 2026-27, the Standard Deduction for salaried employees and pensioners is ₹75,000 under the New Tax Regime. If you choose to stay in the Old Tax Regime, the Standard Deduction remains at ₹50,000. Our calculator automatically applies these figures based on the regime you are comparing.
3. Can I claim HRA and Home Loan interest in the New Tax Regime?
No. Under the New Tax Regime, most exemptions and deductions—including HRA (House Rent Allowance), Section 80C (LIC, PPF, ELSS), and Section 24b (Home Loan Interest for self-occupied property)—are not allowed. However, if you have a let-out property, interest on the home loan can still be offset against rental income under both regimes.
4. What is “Marginal Relief” in the New Tax Regime?
Marginal Relief is a crucial safety net for those whose income slightly exceeds the ₹12 Lakh threshold. Without it, a person earning ₹12,05,000 would pay significantly more tax than someone earning ₹12,00,000. Marginal Relief ensures that the increase in income tax is not more than the increase in the income above the threshold.
5. Do I need to inform my employer which regime I want to choose?
Yes. You should declare your preferred tax regime to your employer at the start of the financial year (April) so they can deduct the correct TDS (Tax Deducted at Source). However, even if you declare one regime to your employer, you can still switch to the other regime at the time of filing your final Income Tax Return (ITR), provided you file it before the original due date.
Meet CA Shiwali Dagar: Your Trusted Tax Partner in South Delhi
CA Shiwali Dagar is a highly regarded Chartered Accountant and the founder of CA Shiwali & Co., a premier tax and compliance firm based in South Delhi. With years of experience in the Indian financial landscape, she specializes in providing simplified solutions for complex tax problems.
Why Clients Choose CA Shiwali & Co.
Based in the heart of South Delhi—serving clients across Saket, Hauz Khas, Nehru Place, and Deoli—CA Shiwali has built a reputation for:
Expert Tax Planning: Navigating the shift between Old and New Tax Regimes to maximize savings for salaried individuals and NRIs.
GST & ROC Compliance: Streamlining business operations for startups and Private Limited companies with precise filing and advisory.
Litigation Support: Specialized handling of Income Tax Notices (Sections 143(1), 148, and 139(9)), providing peace of mind during scrutiny.
Personalized Service: Unlike large, impersonal firms, CA Shiwali & Co. provides direct, expert-led consultation tailored to your unique financial goals.
“Our mission is to turn the complexity of Indian Taxation into a clear, manageable roadmap for our clients. We don’t just file returns; we build long-term financial health.” — CA Shiwali Dagar
Contact Information
Ready to optimize your tax strategy for AY 2026-27?
Website: cashiwali.com
Phone: 9266032777
Office: Serving South Delhi and surrounding regions.
