How can the Section 156 rebate reduce tax on a ₹12.75 lakh salary?

For Tax Year 2026-27, an eligible resident salaried taxpayer under the default regime can claim the ₹75,000 salary deduction under Section 19. If ₹12,75,000 gross salary is the only income, total income becomes ₹12,00,000 and the Section 156 rebate can reduce ordinary slab tax by up to ₹60,000. CTC is not the same as gross salary, and special-rate income can change the result.

What is marginal rebate relief under Section 156 for income slightly above ₹12 lakhs?

For an eligible resident under the default regime, marginal rebate relief can limit ordinary slab tax when total income is just above ₹12 lakhs. It does not turn special-rate income into slab income, and the final amount must include any special-rate tax and cess. The calculator applies the relief only after checking total-income eligibility.

Which itemized deductions are retained under the Old Tax Regime?

Under the Income-tax Act, 2025, commonly used old-regime items include the Section 123 savings deduction (legacy Section 80C, within its aggregate ceiling), Section 126 health-insurance deduction (legacy Section 80D), eligible HRA exemption under Schedule III, and eligible house-property interest under Section 22. Conditions and combined ceilings still apply.

Is the ₹75,000 Standard Deduction available to self-employed individuals?

No. The ₹75,000 deduction under Section 19 is for eligible salary income, including qualifying pension treated as salary. Business and professional income is computed separately; only expenses allowed by the applicable business-income provisions may be deducted.

Income Tax Calculator (FY 2026-27)

Estimate your liability under the old and default regimes using Tax Year 2026-27 rules and clearly stated assumptions.

Income Tax Calculator (Tax Year 2026-27)

Compare old and default regimes for Tax Year 2026-27 under the Income-tax Act, 2025 as amended by Finance Act, 2026.

Scope: salary or other normal-rate income only. Use the capital-gains, crypto or other specialist calculator for special-rate income, winnings, losses or treaty positions.

Gross Annual Salary / Income

Salaried Employee

Other normal-rate income

Interest, rent or other income taxed at normal slab rates. Do not include special-rate gains or winnings.

Residential status for Section 156

Age category (optional old regime)

Old Regime Itemized Deductions

Section 123 / legacy 80C (max ₹1.5L)

Eligible HRA from detailed HRA calculator

Section 126 premium: self & familySelf or spouse is a senior citizen (₹50k cap)

Section 126 premium: parentsParent is a senior citizen (₹50k cap)

Section 124 additional NPS (legacy 80CCD(1B))

Current-year house-property loss set-off (max ₹2L)

Old-regime comparison only. Enter an already-computed eligible current-year loss, not total loan interest.

Optional-old-regime comparison includes only the categories shown. It does not infer deductions from CTC and does not include an uncategorised “other deductions” amount.

Lower Tax in This Entered ScenarioNew Regime is lower by ₹1,63,800 in this estimate

New Regime: Lower Estimate

New Regime Has the Lower Estimate

You save ₹1,63,800 in annual tax under the New Regime.

Monthly Tax Difference₹13,650/mo

Component

New Regime (FY 26-27)

Old Regime

Gross Annual Salary / Income₹12,00,000₹12,00,000

Standard Deduction-₹75,000-₹50,000

Entered deductions & exemptions₹0-₹0

Net Taxable Income₹11,25,000₹11,50,000

Base Income Tax₹52,500₹1,57,500

Tax Rebate (Section 156 / legacy Section 87A)-₹52,500-₹0

Marginal rebate relief-₹0₹0

Surcharge after marginal relief₹0₹0

Health & Education Cess (4%)₹0₹6,300

Total Annual Tax Liability₹0₹1,63,800

Monthly Income After Tax Only₹1,00,000₹86,350

The lower figure is not personal regime advice. The comparison uses only the inputs shown and excludes payroll deductions, capital-gain details, losses, treaty positions, and unmodelled exemptions.

Gross Income vs Estimated Income Tax (New Regime)

Live Breakdown

Gross Salary₹12,00,000

Income After Tax Only

₹12,00,000100%

Total Tax Payable

₹00%

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Individual Tax Slabs (Tax Year 2026-27)

New vs. Old Tax Regime Slabs Comparison

Compare the income tax slab rates under the updated default New Tax Regime (Income-tax Act, 2025) versus the optional Old Tax Regime.

Net Taxable Income Range	New Tax Regime Rate (Default / Section 202)	Old Tax Regime Rate (Optional with Deductions)	Statutory Highlights & Savings
Up to ₹2,50,000	0% (Nil)	0% (Nil)	Both regimes apply nil tax in this range
₹2,50,001 – ₹3,00,000	0% (Nil)	5%	Senior Citizens (Age 60-80) exempt up to ₹3L in Old Regime
₹3,00,001 – ₹4,00,000	0% (Nil)	5%	Super Senior Citizens (Age 80+) exempt up to ₹5L in Old Regime
₹4,00,001 – ₹5,00,000	5%	5%	Old-regime resident rebate under Section 156(1): up to ₹12,500 when total income is at most ₹5L
₹5,00,001 – ₹8,00,000	5%	20%	🔥 New Regime saves 15% tax rate on this slab!
₹8,00,001 – ₹10,00,000	10%	20%	New Regime saves 10% tax rate on this slab
₹10,00,001 – ₹12,00,000	10% Resident rebate may reduce slab tax to nil	30%	Section 156 may reduce default-slab tax to nil when a resident individual's total income is at most ₹12L
₹12,00,001 – ₹16,00,000	15%	30%	New Regime saves 15% tax rate on this slab
₹16,00,001 – ₹20,00,000	20%	30%	New Regime saves 10% tax rate on this slab
₹20,00,001 – ₹24,00,000	25%	30%	New Regime saves 5% tax rate on this slab
Above ₹24,00,000	30%	30%	Highest slab rate. Surcharge applies for income > ₹50 Lakhs

Standard Deduction

Salaried employees get ₹75,000 Standard Deduction in the New Regime vs. ₹50,000 in the Old Regime.

Section 156 Tax Rebate

A resident individual may receive a rebate of up to ₹60,000 when total income is at most ₹12 Lakhs. Special-rate income still has separate tax treatment.

Exemptions & Deductions

The optional old regime retains legacy deductions now mapped in the 2025 Act, including sections 123 and 126 and the HRA provision in Schedule III. Eligibility conditions still apply.

Worked examples

Check rebate and surcharge boundaries before changing your values

Open ten auditable Tax Year 2026-27 scenarios in English, Hindi and selected Hinglish, then edit every material assumption in the embedded calculator.

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Frequently Asked Questions (FAQs)

Section 202 of the Income-tax Act, 2025 applies these Tax Year 2026-27 slabs: ₹0–₹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%). Rebate, surcharge, cess and special-rate income are computed separately.