Income Tax Calculator FY 2026-27 – Old vs New Regime

Income Tax Slabs FY 2026-27 — New Regime (Updated Budget 2026)

Income Tax Slabs FY 2026-27 — Old Regime

The old tax regime slabs vary based on your age group. Here are the detailed slabs for individuals below 60, senior citizens, and super senior citizens.

Individuals Below 60 Years

Senior Citizens (60 to 80 Years)

Super Senior Citizens (Above 80 Years)

New Regime vs Old Regime — Which is Better for You in 2026?

Note: Old Regime becomes beneficial ONLY if your total deductions exceed ₹3.75 lakh — which is rare for most salaried Indians.

Income Tax Calculator FY 2026-27 — Salary-wise Quick Reference

Note: Monthly In-hand calculated after new regime tax and 12% EPF deduction. Actual may vary based on HRA, allowances and city.

How to Tell Your Employer Which Tax Regime You Want

Every April you must submit Form 12BB to your employer declaring your tax regime choice. If you don't submit, your employer defaults to the NEW regime from FY 2024-25 onwards.

Steps: 1) Calculate using our calculator above. 2) If old regime saves more → fill Form 12BB with investment declarations. 3) Submit to HR by April 30. 4) You can switch regime at ITR filing time even if you told employer different. Most Indians miss this — their employer is deducting wrong TDS all year.

Tax on ₹12 Lakh Salary — Is It Really Zero in 2026?

Yes and No. Under new regime, ₹12L income attracts ₹60,000 tax on slabs — BUT Rebate u/s 87A of ₹60,000 makes net tax zero. Add 4% cess on zero = still zero. So effective tax = ₹0.

BUT: this only applies to regular income. If you have ₹12L salary + ₹1L capital gains from stocks — the ₹1L LTCG is taxed separately at 10% and rebate does NOT cover it. Also ₹12,00,001 income = full ₹60,000+ tax with no rebate — marginal relief provision applies here.

How Much Tax on Side Hustle Income in India 2026?

Side hustle income is added to your total income and taxed at your slab rate. If you earn ₹8L salary + ₹2L freelance income = ₹10L total — all taxed together.

Important: if your total advance tax liability exceeds ₹10,000 in a year, you must pay advance tax quarterly or face penalty under sections 234B and 234C. Side hustlers can claim business expenses as deductions — phone, internet, laptop depreciation, and travel. Maintain proper records for these expenses. If your side hustle income is above ₹20L, GST registration may be needed.

Use our calculator above to add your side hustle income and see the exact tax impact on your overall finances.

Standard Deduction FY 2026-27 — Salaried Employees

New Regime: ₹75,000 standard deduction (increased in Budget 2024).
Old Regime: ₹50,000 standard deduction.

This deduction is automatic — no proof needed. Every salaried employee gets this benefit. Family pensioners are also eligible for a ₹25,000 standard deduction.

Section 80C Investments — Save Up to ₹46,800 in Tax

Important: 80C deductions are only useful in the OLD regime. Under the new regime, 80C gives zero benefit.

Monu's Tax Story — How I Saved ₹31,000 Extra Tax in 2026

My salary was ₹7.2L/year in early 2026. I was following the old regime by default — my company auto-deducted TDS based on it. I switched to the new regime declaration in March 2026 and instantly saved ₹31,000 in tax. I used that money to start a new SIP.

I also had ₹1.8L side hustle income from MonuMoney.in and freelance digital marketing. I paid advance tax of ₹8,500 in March to avoid any penalty. Lesson: most Indians are in the wrong tax regime by default — check yours today. Not financial advice — just my experience.

Frequently Asked Questions about Income Tax FY 2026-27