Question 1

Is income tax zero on a ₹12 lakh salary in FY 2026-27?

Accepted Answer

Under the New Regime, with the ₹75,000 standard deduction, taxable income on a ₹12L gross salary is ₹11,25,000 — under the ₹12L Section 87A rebate threshold. Tax liability is effectively zero. With gross income of ₹12,75,000, the taxable income is exactly ₹12L and tax remains zero.

Question 2

How much income tax do I pay on a ₹15 lakh salary in 2026?

Accepted Answer

Under New Regime (after ₹75,000 standard deduction, taxable income = ₹14.25L): Nil on ₹4L + 5% on ₹4L (₹20,000) + 10% on ₹4L (₹40,000) + 15% on ₹2.25L (₹33,750) = ₹93,750 base tax. After 4% cess, approximately ₹97,500 total.

Question 3

Which is better — New Regime or Old Regime for FY 2026-27?

Accepted Answer

The New Regime is better if your total eligible deductions are below ₹3.75 lakh. The Old Regime is better when you have significant deductions — HRA, 80C investments of ₹1.5L, home loan interest of ₹2L, health insurance premiums, etc. Run both scenarios in our calculator to find your exact savings.

Question 4

What is the income tax slab for FY 2026-27 under the New Regime?

Accepted Answer

New Regime slabs for FY 2026-27: 0% up to ₹4L; 5% from ₹4L–₹8L; 10% from ₹8L–₹12L; 15% from ₹12L–₹16L; 20% from ₹16L–₹20L; 25% from ₹20L–₹24L; 30% above ₹24L. Plus 4% Health and Education Cess on computed tax.

Question 5

Does the New Regime allow HRA exemption or 80C deduction?

Accepted Answer

No. The New Regime does not allow HRA exemption, Section 80C deductions (PPF, ELSS, LIC), Section 80D (health insurance), or home loan interest deduction. The only deductions allowed are the standard deduction of ₹75,000 and the employer's NPS contribution under 80CCD(2).

Question 6

What is the Section 87A rebate under the New Regime in 2026?

Accepted Answer

Under the New Regime for FY 2026-27, Section 87A provides a full rebate equal to the computed tax amount for individuals with taxable income up to ₹12,00,000. This means if your net taxable income (after standard deduction) does not exceed ₹12 lakh, your income tax liability is zero.

Income Tax Calculator FY 2026-27

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