Income Tax Calculator

Compare an estimated salary-tax liability under the Old and New Tax Regimes.

Tax Year 2026-27  |  Reviewed 9 September 2026

Your Income & Deductions

Your total yearly income before any deductions.
Salary standard deduction: ₹50,000 under Old Regime and ₹75,000 under New Regime.
Deductions (For Old Regime Only)
₹
Maximum allowed limit is ₹1,50,000.
₹
₹
Combine any other exemptions you claim here.

* Note: The New Tax Regime does not allow standard Section 80C, 80D, or HRA exemptions.

Our Recommendation

Comparing estimates...

Old Regime

Total Tax Liability

₹ 33,800

Gross Income ₹ 9,00,000
Less: Deductions - ₹ 2,25,000
Taxable Income ₹ 6,75,000
New Regime

Total Tax Liability

₹ 46,800

Gross Income ₹ 9,00,000
Standard Deduction - ₹ 75,000
Taxable Income ₹ 8,50,000

Old vs New Tax Regime for Tax Year 2026-27

The New Tax Regime (Default)

The Government of India introduced the New Tax Regime to simplify the tax structure. It offers lower tax rates across broader income slabs but removes nearly all major exemptions and deductions like Section 80C (PPF, LIC), Section 80D (Mediclaim), and HRA.

For eligible resident individuals, Section 87A can reduce tax to nil where total income does not exceed ₹12,00,000. Salaried taxpayers also receive a standard deduction of up to ₹75,000. Marginal relief may apply just above the rebate threshold.

The Old Tax Regime

The Old Tax Regime allows taxpayers to claim up to 70 different deductions and exemptions to substantially lower their taxable income. If you have significant investments in PF, PPF, life insurance, medical insurance, or pay house rent/home loan EMI, this regime often results in lower tax payments.

Taxable incomes up to ₹5,00,000 remain tax-free under this regime due to the Section 87A rebate. The ₹50,000 standard deduction applies here as well.

Frequently Asked Questions

The lower estimate depends on your eligible income, exemptions and deductions. Use the comparison as a starting point, then verify your position through the Income Tax Department estimator or a qualified tax professional.

The calculator applies ₹75,000 under the New Regime and ₹50,000 under the Old Regime, limited to salary income.

No, most deductions including Section 80C (₹1.5 lakh for PPF, ELSS, LIC), Section 80D (health insurance), and HRA exemption are NOT available in the New Tax Regime. Only the standard deduction and NPS employer contribution (80CCD(2)) are allowed.

The estimate uses nil up to ₹4 lakh; 5% from ₹4-8 lakh; 10% from ₹8-12 lakh; 15% from ₹12-16 lakh; 20% from ₹16-20 lakh; 25% from ₹20-24 lakh; and 30% above ₹24 lakh. Eligible resident individuals may receive Section 87A rebate up to total income of ₹12 lakh.

First, calculate Gross Total Income (salary + other income). Then subtract eligible deductions (80C, 80D, HRA, etc. in Old Regime). Apply the tax slab rates to the taxable income. Add 4% Health & Education Cess on the tax amount. Subtract any TDS already paid to find tax payable/refund.
Reviewed 9 September 2026 Reference values can change. Verify important filings or decisions with the relevant authority.

Transparent calculation

Formula and rule sequence

MethodTaxable salary = gross salary − allowed deductions; tax = progressive slab tax − eligible rebate + 4% cess
  1. Identify the relevant amount and transaction type.
  2. Apply the displayed rate or slab to that amount.
  3. Verify classification, eligibility and current notification before filing.

Important assumption: Special rates, exemptions, place-of-supply rules and case-specific adjustments may not be represented.

Private by design, useful as an estimate

Most calculation and document entries are processed in this browser. HSN search terms are sent to BharatERP only to return matching references. This shared tool layer does not send entered values to analytics.

Avoid entering passwords, bank credentials or unnecessary identity data. Outputs are estimates or editable templates—not legal, tax, investment, lending or accounting advice.

Income Tax Calculator result BharatERP PRO

Recommended next step

Continue with connected business records

Use this estimate for planning, then manage actual billing, accounting, inventory and reports in one business workflow. Available features depend on the selected paid plan.

Explore BharatERP PRO Schedule a Demo
Compare all paid plans
WhatsApp