The 'Tipping Point': Old vs New Regime
The biggest question for taxpayers in FY 2026-27 is which regime to choose. For most salaried individuals, the 'Tipping Point' is roughly ₹3.75 Lakh. If your total deductions (80C + 80D + HRA + Home Loan Interest) are more than ₹3.75 Lakh, the Old Regime usually saves you more. If your deductions are lower, the New Regime is mathematically superior.
Section 87A: The Zero Tax Magic
Under the New Tax Regime, the government offers a massive rebate under Section 87A. For FY 2026-27, if your taxable income is up to ₹12 Lakh, your tax is fully rebated. When you add the ₹75,000 Standard Deduction, a salaried professional earning ₹12.75 Lakh effectively pays Zero Tax, making India one of the most tax-efficient countries for the middle class.
Marginal Relief: Avoiding the Tax Cliff
If your income is slightly above the ₹12 Lakh threshold (say ₹12.05 Lakhs), a normal calculation would result in a sudden tax of ₹90,000+. To prevent this, the government provides Marginal Relief, ensuring that the extra tax you pay is never more than the extra income you earned above the threshold.
Using the Income Tax Calculator
Input Income
Enter your gross Annual Salary and any other income (like Fixed Deposit interest or rental income).
Add Exemptions
Fill in your HRA or LTA exempt amounts. These only lower your tax in the Old Regime.
Input Deductions
Enter your 80C investments (PPF, ELSS, EPF), 80D (Medical Insurance), and Home loan interest.
Compare Result
The calculator instantly compares both regimes and highlights the exact amount you save by choosing the most efficient one.
Frequently Asked Questions
⚠️ Disclaimer
The figures provided by this calculator are estimates based on the inputs you provide and standard financial formulas. STOCKCALC.IN does not offer investment advice. Please consult a qualified financial advisor before making any investment decisions.