Calculate your income tax under the Old or New Tax Regime for Tax Year 2026-27, anytime, anywhere, with Registrationwala’s easy-to-use Income Tax Calculator.
Income Tax is a direct tax charged by the Indian Government on the income earned by individuals, companies and other taxpayers. This system is governed by Income Tax Act, 2025 w.e.f. 1 April 2026. It prescribes the procedure for computation, assessment and collection of income tax. It is the legal obligation of every eligible taxpayer to file an ITR every year before stipulated deadlines for disclosing income and claiming refunds, if eligible.
ITRs can be filed online via website of the Income Tax Department. Under old regime, there are a number of deductions and exemptions under the Indian tax system that helps in reducing overall tax burden for financial year. However, under the new regime, the tax rates tend to be lower for salaried individuals.
Need help in filing ITR under the New Act? Get in touch with our ITR experts at Registrationwala.
Here are the key highlights of the new Income-tax Act, 2025:-
| Key Change | What it Means |
|---|---|
| Single “Tax Year” concept | The old terms “previous year” and “assessment year” are now replaced with a single Tax Year concept. |
| New tax regime is the default | The new tax regime will be the default option. That said, eligible taxpayers can still choose old regime. |
| Rs. 75,000 Standard Deduction | Salaried individuals can claim a Rs. 75,000 standard deduction under new tax regime. |
| Rebate up to Rs. 60,000 | Eligible taxpayers with taxable income up to Rs. 12 lakh can get a rebate of up to Rs. 60,000, making their tax liability zero. |
| Section numbers changed | Many provisions have been renumbered under new Act. Therefore, familiar section numbers may be different. |
The table below shows the difference between the Old and New Tax Regime tax slabs for Tax Year 2026-27:-
| Taxable Income | Old Tax Regime (Individuals below 60 years) | New Tax Regime |
|---|---|---|
| Up to Rs. 2.5 lakh | Nil | Nil |
| Rs. 2.5 lakh to Rs. 4 lakh | 5% | Nil |
| Rs. 4 lakh to Rs. 5 lakh | 5% | 5% |
| Rs. 5 lakh to Rs. 8 lakh | 20% | 5% |
| Rs. 8 lakh to Rs. 10 lakh | 20% | 10% |
| Rs. 10 lakh to Rs. 12 lakh | 30% | 10% |
| Rs. 12 lakh to Rs. 16 lakh | 30% | 15% |
| Rs. 16 lakh to Rs. 20 lakh | 30% | 20% |
| Rs. 20 lakh to Rs. 24 lakh | 30% | 25% |
| Above Rs. 24 lakh | 30% | 30% |
The new tax regime is the default tax regime, but you can still opt for the old tax regime if it suits you better. One major difference is that the old tax regime allows various deductions and exemptions, such as Section 80C, HRA and other eligible deductions. Most of these benefits are not available under the new tax regime. However, the new regime comes with lower tax rates and a Rs. 75,000 standard deduction for salaried individuals.
Because of this, a salaried person earning up to Rs. 12.75 lakh can have zero tax liability, subject to the applicable Section 87A rebate and assuming there is no special-rate income. If you are a salaried employee, you can generally choose between the two regimes each year when filing your ITR. However, if you earn income from a business or profession, there are certain restrictions on switching between the two regimes.
Old Tax Regime:- This can work better if you claim deductions like 80C, HRA, home loan interest, etc.
New Tax Regime:- This may be a better choice if you do not have many deductions and want to keep your tax calculation simple.
Salary up to Rs. 12.75 lakh:- Under the new regime, you may have no tax to pay, subject to the Section 87A rebate and other conditions.
At the end of the day, the right regime totally depends on your salary and how much you can claim through deductions and exemptions. Still confused? Just calculate your tax under both regimes using the tax calculator and go with the one that gives you the lower tax.
Registrationwala online IT tax calculator is a tool that allows you to calculate tax online. By using it, you can calculate your tax liability on the basis of your income details. Additionally, it provides you with a comparison of tax liability between the old and new tax regimes to allow you to decide the regime that is better for you.
Registrationwala’s IT tax calculator online allows you to calculate your tax on income. To use our calculator, you need to follow the steps below:
You need to add basic details in the tax saving calculator, such as Financial Year and Age Group you belong to. Then click on calculate.
Now, you need to enter your income details, such as income from interest, rental income received, rental income, income from digital assets, exempt allowances, home loan interest - self occupied, home loan interest let out, and other income (if any). Then, click on Next.
After this, you need to include deduction details like Basic Deduction (80C), Medical Insurance (80D), Housing Loan Interest (80EEA), Employer’s NPS (80CCD(2), Deposit Interest (80TTA), Charity (80G), Employee’s NPS (80CCD), and Other Deductions. Then, click on calculate.
On the basis of your input, our tool will calculate the tax payable as per the old regime as well as the new regime. Accordingly, you can decide which regime is better for you.
There are many benefits of using Income Tax Calculator in India, such as:
By using the tax and income calculator, you can do income tax calculation on your income easily.
The income tax calculator fy 2026-27 allows you to plan your tax payment in advance, helping you to manage your other financial requirements and expenses.
The tax calculator provides you quick estimates based on the details you provide. It does away with the need to calculate your tax liability manually.
The tool can help you to maximize your savings, as you get an idea about how much you can save from the deductions you claim.
By using the new tax regime calculator, you can do tax calculation as per new regime.
Q. How is income tax calculated?
A. Income tax is calculated by applying the applicable tax rates to your taxable income. After that, eligible rebates are deducted and then surcharge and cess are added, if applicable, to arrive at final tax payable.
Q. Can I calculate salary and tax using Registrationwala’s IT calculator?
A. Yes, using Registrationwala’s Income Tax calculator FY 2025-26 / 2026-27, you can calculate salary and tax within just a few minutes.
Q. What is tax calculator income tool?
A. It is an online tool that helps individuals to get an estimate of their tax liability on the basis of their income, deductions and applicable tax slabs under old/new regime.
Q. Do I have to pay zero tax if my income is up to Rs. 12 lakh under the new regime?
A. Yes. Under the new tax regime, eligible resident individuals with total income of up to Rs. 12 lakh can get a rebate of up to Rs. 60,000, which results in zero tax. For salaried individuals, this limit can effectively go up to Rs. 12.75 lakh after considering the Rs. 75,000 standard deduction, subject to applicable conditions.
Q. What is Standard Deduction and Rebate under the New Tax Regime?
A. Under the new regime, the salaried individuals can claim a Rs. 75,000 standard deduction. So, a salary of Rs. 12.75 lakh becomes Rs. 12 lakh taxable income. With the applicable Section 87A rebate, the tax payable can be zero, subject to eligibility conditions.
Q. How to save tax on income under the old regime?
A. If you want to save tax on income under the old regime, you can maximize deductions under various sections of the ITA, such as Section 80C, 80D, etc. Additionally, you can claim exemptions like House Rent Allowance and Leave Travel allowance. You can also invest in tax-saving schemes like PPF, ELSS and insurance to reduce your taxable income.
Q. What is Form 130?
A. Form 130 is the new salary TDS certificate under the Income-tax Act, 2025. It replaces Form 16 and shows your salary, TDS deducted and other important tax details.
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