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Income-tax calculator FY 2026-27: Know tax on ₹4 lakh to ₹5 crore in old vs new tax regime after Budget 2026
4 min read | Updated on February 02, 2026, 14:50 IST
SUMMARY
Budget 2026 tax calculation: There is no change in tax slabs. In the new tax regime, a resident individual having taxable income up to ₹12 lakh is allowed a rebate of up to ₹60,000 under Section 156 of the Income-tax Act, 2025.
Know about tax liability under old and new regimes for Tax Year 2026-27
This article looks at how much tax a taxpayer will have to pay in the new tax regime and the old tax regime in TY 2026-27 on incomes ranging from ₹4 lakh to ₹5 crore.
Meanwhile, you can calculate your tax liability by yourself using our income tax calculator below.
New Tax Regime calculation
The following table shows tax liability on incomes from 0 to ₹5 crore, including health and education cess and surcharge (applicable to income above ₹50 lakh).
| Income slabs (₹) | Tax liability |
|---|---|
| 0 – 4,00,000 | Nil |
| 4,00,001 – 8,00,000 | Nil after rebate |
| 8,00,001 – 12,00,000 | Nil after rebate |
| 12,00,001 – 16,00,000 | ₹62,400 plus 15.60% of income exceeding ₹12,00,000 |
| 16,00,001 – 20,00,000 | ₹1,24,800 plus 20.80% of income exceeding ₹16,00,000 |
| 20,00,001 – 24,00,000 | ₹2,08,000 plus 26.00% of income exceeding ₹20,00,000 |
| 24,00,001 – 50,00,000 | ₹3,12,000 plus 31.20% of income exceeding ₹24,00,000 |
| 50,00,001 – 1,00,00,000 | ₹12,35,520 plus 34.32% of income exceeding ₹50,00,000 |
| 1,00,00,001 – 2,00,00,000 | ₹30,85,680 plus 35.88% of income exceeding ₹1,00,00,000 |
| 2,00,00,001 – 5,00,00,000 | ₹72,54,000 plus 39% of income exceeding ₹2,00,00,000 |
| 5,00,00,001 and above | ₹1,89,54,000 plus 39% of income exceeding ₹5,00,00,000 |
In the new tax regime, a resident individual having taxable income up to ₹12 lakh is allowed a rebate of up to ₹60,000 under Section 156 of the Income-tax Act, 2025 (corresponding to Section 87A of the Income-tax Act, 1961). This rebate is not available on tax on incomes chargeable at special rates. Surcharge is charged on income exceeding ₹50,00,000.
Old Tax Regime calculation
The following table shows tax liability on incomes from 0 to ₹5 crore, including health and education cess and surcharge (applicable to income above ₹50 lakh) under the old tax regime
| Income slab (₹) | Tax liability |
|---|---|
| 0 – 2,50,000 | Nil |
| 2,50,001 – 5,00,000 | Nil after rebate |
| 5,00,001 – 10,00,000 | ₹13,000 plus 20.80% of income exceeding ₹5,00,000 |
| 10,00,001 – 50,00,000 | ₹1,17,000 plus 31.20% of income exceeding ₹10,00,000 |
| 50,00,001 – 1,00,00,000 | ₹15,01,500 plus 34.32% of income exceeding ₹50,00,000 |
| 1,00,00,001 – 2,00,00,000 | ₹33,63,750 plus 35.88% of income exceeding ₹1,00,00,000 |
| 2,00,00,001 – 5,00,00,000 | ₹75,56,250 plus 39% of income exceeding ₹2,00,00,000 |
| 5,00,00,001 and above | ₹2,11,04,850 plus 42.744% of income exceeding ₹5,00,00,000 |
In the old tax regime, the basic exemption income slab in case of a resident individual of the age 60 years or more (senior citizen) and resident individual of the age 80 years or more (very senior citizens) at any time during the previous year, continues to remain the same at ₹3,00,000 and ₹5,00,000 respectively.
A rebate of ₹12,500 is allowed on income up to ₹5,00,000. Marginal relief is available to ensure that the additional income tax payable, including surcharge of 10%, 15%, 25% or 37% on the excess of income over ₹50,00,000, ₹1,00,00,000, ₹2,00,00,000 or ₹5,00,00,000 as the case may be, is limited to the amount by which the income is more than ₹50,00,000, ₹1,00,00,000, ₹2,00,00,000 or ₹5,00,00,000 respectively. However, no marginal relief is available in respect of the health and education cess.
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