Income Tax Calculator - Calculate Tax for FY 2026-27

What Is an Income Tax Calculator?

The income tax calculator is an online tool that helps taxpayers calculate the tax payable on their total annual income. Upstox income tax calculator allows you to determine your tax liability according to the Income Tax Act, 2025.

The Upstox Income Tax calculator takes into account the deductions, exemptions and rules set out in the Income Tax Act 2025 and simplifies tax calculations, especially for individuals unfamiliar with the sections and provisions. This allows them to compare their tax liability as per the old and new tax regimes, so they can choose an option most beneficial to them. Our calculator is easy to use and up-to-date with the latest tax changes proposed in the Union Budget 2026-27, so you can plan your taxes more effectively.

How to Use the Income Tax Calculator for FY 2026-27 (Tax Year 2026-27)

Upstox Income Tax Calculator is easy to use. Follow the instructions below to calculate your tax liability.

How to Use the Income Tax Calculator Online for FY 2025-26 (AY 2026-27)?

Upstox Income Tax Calculator is easy to use. Follow the instructions below to calculate your tax liability.

What Are the Income Tax Slabs for FY 2026-27 (Tax Year 2026-27)?

The income tax slabs vary across age groups. The resident taxpayers are categorised into three groups:

• Resident Individual: Taxpayers below the age of 60 years
• Senior Citizens: Taxpayers between the ages of 60 and 79 years
• Super Senior Citizens: Taxpayers of the age 80 years and above.

Note: No income tax is payable by individuals with a total taxable income up to ₹12 lakh under the New Tax Regime (Section 156 of the Income Tax Act 2025), individuals with a total income below ₹12 lakh earn a rebate of 100%. This rebate is not allowed in case of long-term and short-term capital gains from equity even if the total income is below ₹12 lakh.

Deductions/Exemptions Allowed in New & Old Regime

The deductions and exemptions allowed in the new and old regimes vary. The following is a comprehensive list of deductions allowed in the two regimes so you can choose a regime that best suits your finances.

Deductions/Exemptions Allowed in New Regime

• Standard deduction for salaried individuals up to ₹75,000.
• Standard deduction of ₹25,000 or 1/3rd of pension, whichever is lower.
• Deduction on interest paid on home loan u/s 130 for let out property
• Deduction on employer’s NPS contribution (14% of salary) under section 124.
• Contributions to Agniveer Corpus Fund under section 125

Deductions/Exemptions Allowed in the Old Regime

• Investment deductions of up to ₹1.5 lakh under section 123.
• Employer’s contribution to NPS up to 10% of basic pay allowed under section 124.
• An employee’s contribution to the pension fund is allowed up to ₹1.5 lakh.
• Medical insurance premium under section 126.
• Deductions in case of a person with a disability of up to ₹1.25 lakh under section 154.
• Deduction in respect of interest on loan taken for education under section 129.
• Deduction in respect of donations to certain funds, charitable institutions, etc. under section 133.
• Deduction in respect of contributions given by any person to political parties under section 137.
• All contributors to Agniveer Corpus Fund under section 125.

Old Tax Regime vs New Regime: Which Is a Better Option?

To figure out which tax regime is best suited for you, you need to calculate your net taxable income after availing all eligible deductions and exemptions under the old and new tax regimes. Compare the tax liability under both regimes and whichever has a lower tax liability is the better choice.

Surcharge and Education Cess

If your income exceeds a certain limit, a surcharge will be levied on top of the existing tax rate. The following are the surcharge rates as per total income:

• Income exceeding ₹50 lakh but less than ₹1 crore - 10% of the total income.
• Income exceeding ₹1 crore but less than ₹2 crores - 15% of the total income.
• Income exceeding ₹2 crore but less than ₹5 crores - 25% of the total income.
• Income exceeding ₹1 crore but less than ₹2 crores - 37% of the total income.

Note: Under the new tax regime, the highest surcharge of 37% has been reduced to 25%.

Along with the surcharge, the Health and Education cess of 4% will be added to your overall income tax liability and applicable under both regimes.

Income Tax Act 2025

The new Income Tax Act 2025 will be effective from April 1, 2026, replacing Income Tax Act 1961. The Income Tax Act 2025 simplifies the tax framework and removes outdated provisions. The new Act aims to make the provisions and language easy to understand for taxpayers and to restructure existing provisions.

The Income Tax Act 2025 has replaced the confusing concept of ‘Assessment Year’ and ‘Previous Year’ with ‘Tax Year’. ‘Tax Year’ is defined as 12 months representing the financial year starting on April 1 and ending on March 31 of the following year.

In the new Act, only intricate language has been eliminated, along with consolidation and restructuring of the provisions. The tax slabs and their rates remain the same, offering predictability to taxpayers.

Rebate Allowed as per Section 156 (Rebate of Income-Tax in Case of Certain Individuals)

Under Section 156 of the Income Tax Act 2025, resident individuals having a net taxable income below ₹12 lakh (after standard deductions) will receive 100% rebate on their income tax liability. However, for resident individuals whose taxable income slightly exceeds ₹12 lakhs, the Act offers marginal relief to ensure that the additional tax payable does not exceed the extra income earned.

Note: FY 2025-26 onwards, income charged under special rates are not eligible for rebate. Rebate is not applicable on long term capital gains from equity mutual funds and shares under section 198 of the Income Tax Act 2025.

Section 123 (Deduction for life insurance premiums, deferred annuity, contributions to provident fund, etc.)

Under Section 123 of the Income Tax Act 2025, any individual or Hindu Undivided Family opting for the old tax regime will be allowed a deduction of ₹1,50,000 per financial year. This deduction is allowed for the total amount invested in life insurance premiums, deferred annuities, and contributions to the Provident Fund (EPF), Equity Linked Savings Scheme (ELSS), along with principal repayment of home loans.

You can also avail a deduction in respect to interest on a loan taken for higher education under Section 129 of the Income Tax Act 2025 under the old regime.

Income Tax Calculation for Salaried Employees

The income tax calculation for salaried employees varies depending on which regime you opt for, old or new. Upstox Income Tax Calculator helps determine your income tax liability under both regimes, so you can opt for a regime with less tax liability.

Calculating income tax for salaried employees is easy and simple.

Gross Salary = Basic Salary + Allowance (HRA, Special Allowance, Transport Allowance, etc) + Bonuses + Other company-provided benefits (accommodation, car or health insurance premium paid by the employer).

Certain components of salary are exempted from tax, such as leave travel allowance and telephone bill reimbursement. Individuals living on rent and receiving HRA can claim an exemption on HRA. Find out the exempted portion of your HRA by using the HRA Calculator.

Let’s calculate the income tax for salaried employees under the old and new regimes by using an example.

Mr A receives a Basic Salary of ₹1 lakh, a HRA of ₹50,000, a special allowance of ₹21,000 per month and a Leave Travel allowance of ₹20,000 annually. He pays a rent of ₹40,000 per month.

Mr A earns interest income from a savings account of ₹8,000 and a fixed deposit interest income of ₹12,000 during the year. Mr A has also invested ₹50,000 in PF, ₹20,000 in an ELSS scheme and paid LIC premiums of ₹8,000. He also paid ₹12,000 in medical insurance. The following are the deductions Mr A can claim under the old tax regime.

Calculation of gross taxable income and tax liability in India (Old regime):

Calculation of gross taxable income and tax liability in India (new regime):

Advantages of Using the Income Tax Calculator

An income tax calculator is an essential online tool that helps taxpayers calculate their tax liability instantly by entering the required information. Upstox Income Tax Calculator offers the following benefits.

• Minimise Errors: Manually calculating your income tax can be a tedious and complicated process. An income tax calculator helps calculate your tax liability accurately by minimising errors that could arise from manual calculations.
• Compare Tax Regime: The income tax calculator calculates your tax liability under both old and new regimes. This allows you to compare tax payable under the regime and opt for a regime with lower tax payable.
• Instant Calculation: The income tax calculator can calculate the income tax payable under both regimes within a few seconds. All you have to do is input your income and deduction details accurately and the calculator will determine your tax payable instantly.
• Optimal Tax Planning: Knowing your tax liability in advance and the different deductions you can take can help you plan your taxes and how to allocate your budget to tax-savings investments to lessen your tax burden.

How to File Income Tax Online?

You can file your income tax online by registering yourself on the government’s e-Filing portal with a valid user id and password. Only resident Indians with an active Permanent Account Number (PAN) can avail this service. Follow the steps below to file your income tax online.

• Go to the Income Tax e-Filing portal and enter your PAN number as the User ID. Enter your password and captcha.
• Next, on the dashboard, click on ‘e-file’, go to ‘Income Tax Returns’ and then click on ‘File Income Tax Return’.
• Select the Tax year (Assessment Year) and the ITR form number you want to fill. Choose between ‘Original/Revised Return’ and then select ‘Prepare and Submit Online’.
• Select the mode of filing by clicking on ‘Online’ under ‘Mode of Filing’ and clicking on ‘Proceed’.
• Select ‘Status’ such as individual, Hindu Undivided Family (HUF) or firm/LLP.
• Select the appropriate ITR form.
• If you select ‘ITR 1’, you will be asked to provide your personal information, gross total income, total deductions, tax paid and total tax liability computed based on the details entered.
• If you select ‘ITR 4’, you need to fill in your personal information, gross total income, disclosures, total deductions, taxes paid and total tax liabilities calculated based on the details entered.
• The website will show a summary of your calculated tax for the year as per the information provided. Review all the details; if any errors are identified, then make the required corrections.
• Click on ‘Proceed to Validation’. There are three verification options to verify your Income Tax Return:

• e-Verify
• e-Verify later within 120 days from the date of filing
• e-Verify via ITR-5 through normal or speed post to ‘Centralised Processing Centre, Income Tax Department, Bengaluru - 560 500’ within 120 days from the date of filing.

Benefits of Filing Income Tax Online

Filing income tax online offers faster refund processing, higher accuracy and allows you to file your ITR from anywhere at any time. The following are the benefits of filing income tax online.

• Faster Refunds: Filing income tax online offers faster processing compared to paper filing, providing faster tax refunds.
• Convenience: You can file your income tax at any time anywhere since there are no time and place constraints, and avoid time-consuming physical visits.
• Higher Accuracy: When you’re e-filing your ITR, the software computes your accurate tax liability by using built-in validations to minimise calculation and data entry errors.
• Instant Confirmation & Security: Once you submit your ITR with accurate details and e-Verify it, you receive an instant confirmation of filing via email on your registered email id.
• Access to Past Data: While filing your Income tax online, you can easily access your past data as the website stores your data securely, allowing you to access it for filing subsequent returns.

How to Calculate Gross Income From Different Sources of Income?

Gross income is the total income earned by an individual before any deductions, exemptions or taxes are deducted. To calculate your gross income, you need to add your income from various sources such as salary, business profit, capital gain and other sources.

For salaried employees, gross income includes basic salary, HRA, bonuses, transport allowance and other benefits offered by the employer. These individuals qualify for standard deductions and exemptions on the House Rent Allowance (HRA), lowering their taxable income. Additionally, if the individual owns a property and earns rental income, such income comes under ‘Income from House Rent’ and should be added to the total taxable income.

Income from capital gains earned by the sale of assets such as stocks, bonds, mutual funds or real estate. Income from capital gains is categorised into two: short-term and long-term capital gains. Net profit earned from business or professional services is taxable as it comes under ‘Business or Professional Income’. Interest income from savings accounts or fixed deposits, dividends and lottery winnings must also be added to the gross income.