ITR Calculator - Calculate Your Income Tax for FY 2026-27
Calculating income tax in India is complex. You need to consider exemptions, allowances, tax-free components, different tax slabs, and income from multiple sources. If you have not studied taxation, applying the correct slab rates and rules can be difficult.
With the EnKash Income Tax Calculator, you can calculate your income tax easily by entering a few key details. The tool is designed to help you estimate your tax liability based on the latest applicable slab rates in India so that you can plan your finances with more clarity and confidence.
What is the Income Tax Calculator?
An Income Tax Calculator is a tool designed to help taxpayers in India quickly and accurately calculate their income tax. It estimates your tax liability based on your gross income, eligible exemptions, and deductions as per the Income Tax Act.
Our income tax calculator is built in line with the provisions of the Income Tax Act, 1961. It allows you to compare and calculate tax under both the new and old tax regimes, helping you choose the best option to plan your finances.
If you are not familiar with tax sections, deductions, or calculation methods, this tool simplifies the process for you. You only need to enter a few basic details, and the calculator provides a clear approximation of your tax liability.
The EnKash Income Tax Calculator is updated in line with the Union Budget 2026 and reflects the latest tax rules for FY 2026–27. It is designed to make income tax calculation simple, accurate, and easy to understand for every taxpayer.
How to Use the EnKash Income Tax Calculator
Calculating your income tax with EnKash is fast and simple — just follow these steps:
1. Select your tax regime: New (default) or Old.
2. Enter your annual salary, other income, and rental income.
3. Under the Old Regime, enter deductions: 80C, HRA, 80D, home loan interest, NPS, etc.
4. Click Calculate My Tax to instantly see a detailed breakdown.
The calculator will display: taxable income, income tax, cess, Gross Salary, net salary income, and Total Tax payable in both regimes.
Income Tax Calculation Formula
For salaried individuals under the New Regime:
• Taxable Income = Gross Income - Standard Deduction (₹75,000)
• Income Tax = Tax as per slab rates on taxable income
• Total Tax = Tax + Surcharge + 4% Health & Education Cess − Rebate u/s 87A
Income Tax Calculator — FY 2026-27
AY 2027-28 · Updated with Union Budget 2026
Income Tax Slab Rates in India
Income Tax Slab Rates for FY 2026-27 under the Old and New Tax regimes are:
| Annual Income Slab | Below 60 years | 60-80 years (Senior) | Above 80 years (Super Senior) |
|---|---|---|---|
| Up to ₹4,00,000 | NIL | NIL | NIL |
| ₹4,00,001 – ₹8,00,000 | 5% | 5% | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% | 10% | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% | 15% | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% | 20% | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% | 25% | 25% |
| Above ₹24,00,000 | 30% | 30% | 30% |
Note: There is NO Tax Liability under the new tax regime for income upto 12 lakhs due to the rebate of 60000 rupees under section 87A. Tax is still calculated as per slabs, but the rebate offsets it fully. This rebate does not apply to income taxed at special rates, such as capital gains or lottery winnings.
How Tax Is Calculated Step by Step
Income tax in India is calculated in a sequence. Here is the basic step-by-step method used for salaried individuals:
- Calculate gross income: Add salary income, rental income, interest income, and any other taxable income.
- Subtract eligible deductions: Under the old tax regime, subtract deductions such as Section 80C, 80D, 80CCD(1B), HRA exemption, and home loan interest, wherever applicable.
- Apply the standard deduction: Reduce the applicable standard deduction from salary income.
- Apply slab rates: Calculate tax based on the income tax slabs under the selected tax regime.
- Add surcharge: If total income crosses the prescribed threshold, add surcharge as applicable.
- Add Health and Education Cess: Add 4% cess on the income tax plus surcharge.
- Apply the rebate under Section 87A: If your taxable income falls within the eligible limit, reduce tax liability by the applicable rebate.
Surcharge in Income Tax
Surcharge is the extra charge payable on income tax. It is a charge added for taxpayers with high incomes. Surcharge is calculated as a percentage of the income tax that is already payable by the tax assessee. Usually, taxpayers with high incomes are required to pay a surcharge on income tax. If taxpayers cross specific income thresholds, they are liable to pay a surcharge on income tax.
Surcharge Rates
- 10% of income tax if total income > ₹50 Lakhs and < ₹1 crore.
- 15% of income tax if total income > ₹1 Crore and < ₹2 Crore.
- 25% of income tax if total income > ₹2 crore and < ₹5 Crore.
- 37% of income tax if income is more than ₹5 crores.
Note: The highest surcharge rate is 25% under the New Tax regime, and additionally, 4% of health and education cess is added in income tax liability of the taxpayer.
Rebate under Income Tax in India (Rebate u/s 87A)
When a taxpayer’s total taxable income falls within the prescribed limit, they can claim a rebate under Section 87A to reduce their tax liability to zero. Under the new tax regime, the rebate has been increased to ₹60,000. For FY 2026–27, the applicable rebate limits are as follows:
| Regime | Limit (Rs.) |
|---|---|
| Old Regime | 5 lakhs |
| New Regime | 12 lakhs* |
Old Tax Regime Vs New Tax Regime
The choice between Old and New regimes depends on how much you claim in deductions. If your total deductions exceed ~₹3.75 lakh, the old regime generally saves more. Our calculator shows you the exact difference for your numbers.
| Feature | Old Tax Regime | New Tax Regime (Default) |
|---|---|---|
| Standard Deduction | ₹50,000 | ₹75,000 |
| Basic Exemption Limit | ₹2.5L / ₹3L / ₹5L (age-based) | ₹3,00,000 for all ages |
| Section 87A Rebate | ₹12,500 for income ≤ ₹5L | ₹60,000 for income ≤ ₹12L |
| Section 80C Deductions | Up to ₹1.5L | Not available |
| HRA Exemption | Available | Not available |
| Section 80D (Health Ins.) | ₹50,000 | Not available |
| NPS Extra 80CCD(1B) | ₹50,000 additional | Not available |
| Home Loan Interest (24b) | Up to ₹2,00,000 | Not available |
| Max Surcharge Rate | 37% (income above ₹5 crore) | 25% (Capped) |
| Best Suited For | Those claiming high deductions | Simpler filing, lower investments |
How to Calculate Income Tax of a Salaried Person?
Old Regime
New Regime
What are the Benefits of using the Income Tax calculator?
Key benefits of using the EnKash Income Tax Calculator include:
- Accuracy: The Income Tax calculator gives you accurate information about your tax liability.
- Regime Comparison: You can easily compare the tax liability under the old tax regime and the New Tax regime, which will help you to make an informed decision.
- Tax Planning: This calculator helps you to plan your investments accordingly.
- Fast and Simplified: The income tax calculator helps you calculate your tax quickly and accurately.
- User-friendly: It has a user-friendly interface that allows taxpayers to calculate their tax liability easily.
Income Sources Exempted Under the New Tax Regime
While calculating the income tax, there are several income sources that are exempted i.e., income from these sources is tax-free, you can claim exemptions on this income. It provides relief to the taxpayers.
Some key Exempted income sources are:
- Agriculture Income: Agriculture income is fully exempted in India under section 10(1) of the Income Tax Act.
- Gratuity: Gratuity is tax-exempt under section 10(10) of the Income Tax Act, up to the maximum amount of 20 Lakhs for private employees and is completely exempted for Government employees.
- Provident Fund Withdrawal: Provident Fund withdrawal is generally tax-free if you have completed five continuous years of service.
- Leave Encashment: For Government employees, leave encashment is fully exempted, whereas for non-government employees it is exempted up to lifetime limit of 25 lakh, under section 10(10AA) of the Income Tax Act.
- Compensation for Natural Calamities: Compensation for natural calamities from the government authorities is fully exempted under Section 10(10BC) of the Income Tax Act.
- Income from Minor Child: Income from a minor child is clubbed with the income of the parent, but parents can claim the exemption up to ₹1,500 in a financial year under section 10(32) of the Income Tax Act.
- Tax-free bonds: Interest earned from a special tax-free bond is exempted.
Deductions Under the Old Tax Regime
The old regime allows several deductions that can significantly reduce your taxable income. These deductions are:
| Section | Deduction Type | Maximum Limit | Examples |
|---|---|---|---|
| 80C | Tax-Saving Investments | ₹1,50,000 | PPF, ELSS, LIC, EPF, NSC, 5-yr FD, Home Loan Principal |
| 80CCD(1B) | Additional NPS Contribution | ₹50,000 | Over and above the ₹1.5L limit under 80C |
| 80D | Health Insurance Premium | ₹50,000 | Medical insurance for self, family, and parents |
| 24(b) | Home Loan Interest | ₹2,00,000 | Interest on loan for self-occupied property |
| 10(13A) | HRA Exemption | Calculated | Actual HRA or 40–50% of basic (metro vs non-metro) |
| 80E | Education Loan Interest | No upper limit | Interest on higher education loan (max 8 years) |
| 80G | Donations to Charity | 50–100% of donation | PM Relief Fund, NGOs, charitable institutions |
| 80TTA | Savings Account Interest | ₹10,000 | Interest income from savings bank accounts |
Frequently Asked Questions (FAQs)
Have more questions?
01. What is income tax?
Income tax is adirect taxcollected by the Government of India on the income earned by individuals and businesses during a financial year. It is charged based on applicable tax slabs and provisions under the Income Tax Act, 1961.
02. What is an income tax return?
An income tax return (ITR) is a form filed with the Income Tax Department where a taxpayer reports income, deductions, and tax paid for a financial year. It is used to calculate final tax liability or claim a tax refund.
03. How is income tax calculated?
Income tax is calculated by determining total taxable income after exemptions and deductions, applying the relevant tax slab rates, adjusting for rebates if eligible, and adding surcharge and 4% cess if applicable.
04. What is a rebate in income tax?
A rebate is a reduction in the total tax payable, available under Section 87A for eligible taxpayers whose income falls within specified limits, allowing their final tax liability to be reduced or become zero.
05. How much income is tax-free?
Under the new tax regime, income up to ₹12 lakh can result in zero tax liability due to the Section 87A rebate of up to ₹60,000, excluding income taxed at special rates. Under the old regime, income up to ₹5 lakh can be tax-free after rebate.
06. What is a surcharge in income tax?
Surcharge is an additional charge on the income tax payable by individuals whose income exceeds specified thresholds. It is calculated as a percentage of the tax amount, not on total income.
07. What is marginal relief in income tax?
Marginal relief ensures that the additional tax payable due to surcharge does not exceed the amount by which income exceeds the surcharge threshold. It prevents a sudden increase in tax liability.
08. What is Section 87A in income tax?
Section 87A provides a tax rebate to resident individuals whose income is within prescribed limits. Under the new regime, it allows a rebate of up to ₹60,000, reducing tax liability to zero within eligible income levels.
