New Tax Regime Income Tax Calculator (FY 2026-27)
Calculate income tax under New Tax Regime slabs with standard deduction and employer NPS exemptions.
Yearly NPS Contribution: ₹0 (Max 14% of basic)
Zero Tax (Sec 87A)
Zero Tax on taxable income up to ₹12 Lakhs (₹12.75L with Std. Deduction).
CTC less income tax. Your actual bank credit will be lower after employee PF and professional tax — the salary calculator models those.
In-Hand = CTC − Employer NPS − Tax. Excludes PF and other employer-deducted components.
New Regime Tax Calculation Summary
Slab-wise Tax Breakdown
CTC & Take-Home Salary Distribution
Visual distribution of Gross CTC across In-Hand Take-Home Salary, Total Tax, and Deductions/NPS.
The New Tax Regime Architecture: Simplified Slabs and Zero-Deduction Efficiency
The default tax framework (Section 115BAC) replaces legacy exemption paper-trails with widened lower-rate tax brackets. By eliminating the necessity to lock savings into 5-year insurance or ELSS instruments, it provides taxpayers with unconstrained monthly disposable liquidity.
New Tax Regime (FY 2026-27) FAQs
Authoritative statutory tax answers on the default tax regime.
What deductions can still be claimed under the New Tax Regime?
The New Regime permits: (1) Standard Deduction of ₹75,000 for salaried employees and pensioners, (2) Employer NPS contribution under Section 80CCD(2) up to 14% of salary, (3) Transport allowance for disabled individuals, and (4) Voluntary retirement scheme (VRS) exemptions.
Can a salaried taxpayer switch back to the Old Tax Regime in future years?
Yes. Salaried individuals with no business or professional earnings can freely choose between the Old and New regimes each financial year when filing their annual ITR on or before the due date.
How does Marginal Relief protect incomes marginally above ₹7 Lakhs?
If your net taxable income exceeds ₹7,00,000 by a small amount (e.g. ₹7,05,000), marginal relief ensures the additional tax levied does not exceed the extra income earned over ₹7 Lakhs.
What is the Health & Education Cess rate applied on computed income tax?
A statutory 4% Health & Education Cess is levied on the total amount of income tax plus applicable surcharges across all income brackets.