Question 1

What are the income tax slabs for FY 2026-27?

Accepted Answer

Under the New Regime: 0-₹4L: Nil, ₹4-8L: 5%, ₹8-12L: 10%, ₹12-16L: 15%, ₹16-20L: 20%, ₹20-24L: 25%, Above ₹24L: 30%. Standard deduction of ₹75,000. Rebate under 87A up to ₹12L taxable income. Under the Old Regime: 0-₹2.5L: Nil, ₹2.5-5L: 5%, ₹5-10L: 20%, Above ₹10L: 30%.

Question 2

Which tax regime should I choose — Old or New?

Accepted Answer

If your total deductions (80C + 80D + HRA + NPS + home loan interest) exceed ₹3.75 lakh, the Old Regime usually saves more. Below that, the New Regime with lower slab rates and ₹75K standard deduction is better. Use this calculator to compare both.

Question 3

What is Section 87A rebate?

Accepted Answer

Section 87A provides a rebate that effectively makes income up to ₹5 lakh tax-free under the Old Regime, and up to ₹12 lakh tax-free under the New Regime (FY 2026-27). This means if your taxable income is below these limits, you pay zero tax.

Question 4

Can I switch between Old and New Regime?

Accepted Answer

Salaried individuals can switch between regimes every year when filing their ITR. Business/professional income earners can switch only once. The New Regime is the default — you need to explicitly opt for the Old Regime with your employer or at filing time.

Question 5

What is the 4% Health & Education Cess?

Accepted Answer

After calculating your income tax, 4% cess is added on top of the tax amount. This is applicable in both Old and New regimes. For example, if your tax is ₹1,00,000, cess = ₹4,000, so total = ₹1,04,000.

Income Tax Calculator — FY 2026-27

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Income Tax Calculator — FY 2026-27

Frequently Asked Questions

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