Income Tax & TDS Calculator 2026-27

Budget 2026 kept the slabs unchanged. New regime: up to ₹4 lakh nil, ₹4–8 lakh 5%, ₹8–12 lakh 10%, ₹12–16 lakh 15%, ₹16–20 lakh 20%, ₹20–24 lakh 25% and above ₹24 lakh 30%. Old regime: up to ₹2.5 lakh nil (₹3 lakh for 60–79 years, ₹5 lakh for 80+), ₹2.5–5 lakh 5%, ₹5–10 lakh 20% and above ₹10 lakh 30%. A 4% cess is added to the tax.

In the new regime, yes: if your taxable income is not more than ₹12 lakh, a rebate of up to ₹60,000 cancels the tax. For salaried people and pensioners, the ₹75,000 standard deduction makes this ₹12.75 lakh of salary or pension. Just above ₹12 lakh, marginal relief ensures your tax is not more than the income above ₹12 lakh.

The new regime is better for most people because of lower rates and the ₹12 lakh rebate. The old regime can be better if you have large deductions, such as HRA, home loan interest, 80C investments and health insurance. Enter your deductions in the calculator to compare both.

Salaried people and pensioners (without business income) can choose either regime every year when filing the return. Tell your employer or pension-paying bank your choice at the start of the year so that TDS is deducted correctly; otherwise the new regime applies by default.

When your total deposit interest in that bank crosses ₹50,000 in a financial year (₹1 lakh for senior citizens). TDS is 10%, or 20% if PAN is not given. If the tax on your total income is nil, you can give Form 121 (it replaced Forms 15G and 15H from 1 April 2026) to avoid TDS.

Not if they are resident, their only income is pension and interest from the same bank that pays the pension, and they give Form 125 (earlier Form 12BBA) to that bank. The bank then calculates the tax and deducts it.