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Income Tax Calculator

Calculate estimated income tax liability under AY 2026-27 and AY 2025-26 New & Old Tax Regimes.

Direct Tax Engine

Income Tax Calculator

₹12,00,000
AY 2026-27 Slabs & Section 87A Rebate

Section 87A rebate can provide full tax relief for eligible resident individuals with total income up to ₹12,00,000, subject to applicable rules. For salaried taxpayers, standard deduction of ₹75,000 applies separately to reduce taxable income.

Estimated Tax Liability
₹0
Gross Annual Income:₹12,00,000
Standard Deduction:-₹75,000
Net Taxable Income:₹11,25,000
Base Computed Slab Tax:₹52,500
Section 87A Tax Rebate:-₹52,500
Health & Education Cess (4%):₹0
Effective Tax Rate:0.00%
Alternative Regime Comparison
Old Regime Tax:₹91,000

Calculation Details & Explanation

  • Standard deduction of ₹75,000 applied for salaried income.
  • Taxable income computed as ₹11,25,000 across AY 2026-27 revised slabs.
  • Section 87A rebate applied based on eligible total income and applicable AY 2026-27 rules.
  • Slab Tax = ₹52,500, 87A Rebate = -₹52,500, Net Tax after Rebate = ₹0, Cess (4%) = ₹0.
Important NoticeTax estimates are based on the selected assessment year, assumptions, and applicable statutory provisions. Actual tax liability may differ depending on individual circumstances, income classifications, and official revisions.

How to Use the Income Tax Calculator

  • Input your parameters in the fields or drag the interactive sliders.
  • The algorithm updates the primary metric and schedules in real-time.
  • Click “Copy Result” to copy structured values to your clipboard.

Calculation Formula

Taxable Income = Gross Income - Standard Deduction - Exemptions | Net Tax = Slab Tax - 87A Rebate + 4% Cess

Example Calculation

Salaried employee earning ₹12,00,000 under AY 2026-27 New Tax Regime

Gross Income: ₹12,00,000
Assessment Year: AY 2026-27
Regime: New Tax Regime
Outcome: Standard Deduction: ₹75,000 | Taxable Income: ₹11,25,000 | Slab Tax: ₹52,500 | Section 87A Rebate: ₹52,500 | Net Tax Payable: ₹0

Section 87A rebate absorbs total computed tax up to ₹12,00,000 taxable income, resulting in zero net tax.

Important Assumptions

  • Salaried standard deduction of ₹75,000 applies under the New Tax Regime.
  • Section 87A rebate can provide full tax relief for eligible resident individuals with total income up to ₹12,00,000, subject to applicable rules.
  • Health & Education cess is uniformly applied at 4% on net income tax.

Frequently Asked Questions

What is the standard deduction for AY 2026-27 in New Regime?

The standard deduction for salaried individuals in the New Tax Regime is ₹75,000.

Is tax zero up to ₹12 Lakhs in the New Tax Regime?

For eligible resident individuals, Section 87A provides a rebate of income tax where total income does not exceed ₹12,00,000 under the AY 2026-27 New Tax Regime. The maximum rebate is ₹60,000. The actual result depends on taxable income and applicable rules.

Which tax regime should I choose?

The New Tax Regime offers lower slab rates without exemptions, while the Old Tax Regime allows deductions like Section 80C, 80D, and HRA.

Important NoticeTax estimates are based on the selected assessment year, assumptions, and applicable statutory provisions. Actual tax liability may differ depending on individual circumstances, income classifications, and official revisions.