Income tax on total income
Tax year 2026-27Tax on total income, and what the regime choice costs
Both years, nine classes of assessee, and the new regime (the default regime) beside the old, each on its own total income. Where a minimum tax binds, the figure at the top is that charge.
Your figures
About this
Tax year 2026-27 is the first year of the Income-tax Act, 2025, charged by Finance Act, 2026, Part I-B of the First Schedule with s.202(1) for the default regime. There is no assessment year under this Act.
About this
Nine classes. A co-operative society and a local authority are not offered: their rates were not carried into this page, and an assessee picker that quietly charges one of them at somebody else's rate is worse than one that leaves them out.
About this
It decides the rebate and the age bands, and not by a little. Both Acts open the rebate with the words "resident in India", so a non-resident individual gets none of it under either regime, and the higher exemption for age is open to a resident individual alone.
About this
This page applies the age bands in the old regime alone, and to a resident individual alone. s.202(1) carries one table for every age, so the control changes nothing while the default regime is selected.
About this
It drives the standard deduction line and the professional tax add back. The standard deduction is SHOWN on this page and is not subtracted: total income is already net of it, so taking it off again would deduct it twice.
About this
The standard deduction under s.19(1) (Table: Sl. No. 2) is capped at the salary, so a salary below it cuts the figure. Leave this not stated and the page reports the deduction uncapped and says the salary was not given, rather than treating a blank box as a nil salary.
About this
This picks the column at the top of the page. Both columns are computed and set against each other below, and s.202(4) decides whether the choice can be made again next year.
Total income under the default regime, split
About this
The split is not a convenience. Two of the surcharge clauses test total income INCLUDING dividend and the capital gains under s.196, s.197 and s.198, and two of them test it EXCLUDING those, so one combined figure cannot produce the right surcharge in either direction once the income is past the first threshold. Enter each head after the deductions you are taking.
About this
Charged under s.195(1)(i) with a flat 25% surcharge from the first rupee under FA 2026 s.3(4)(b) (Table: Sl. No. 8). The rate for this charge is not the same figure in the two years: the table in section 05 sets the two side by side, so check the year on the toggle above before reading it.
The old regime's own total income
About this
The two regimes do not share a total income. The old regime's is lower by every deduction s.202(1) takes away, by the house rent allowance, and by the standard deduction difference. Leave this not stated and the old column is computed on the figure above, which is not the client's old regime figure, and the page reports NO SAVING rather than one struck across a single income.
About this
Only the ordinary box is asked for twice. The dividend, gains and winnings figures above are carried across to the old regime column unchanged, so where your client's figures under those heads differ between the two computations, this page will not show that difference.
About this
With business or profession income the old regime option is sticky under s.202(4), and the comparison below is read against that rather than as a free annual choice.
The alternate minimum tax gate
About this
THREE STATES, and the middle one is why this control is a set of buttons rather than a checkbox. For a firm and an LLP there is no adjusted total income floor at all, so an empty box read as a "no" would switch off the charge altogether. Leave it not stated and the page says the charge was not tested, which is different from saying it does not apply.
Figures this page cannot show a source for, so you can change them
About this
4 percent is stated for both years, at FA 2026 s.3(15) for tax year 2026-27 and s.2(6) for FY 2025-26. It is editable because it has a one year shelf life: neither Income-tax Act levies a cess, the 2025 Act's only surcharge provision defers to any Central Act, and FA 2026 speaks to these two years and nothing later. The rate is not a constant of the system. What would settle it: The Finance Act for the year in question.
Tax payable
9.99% of total income₹ 1,92,400
The ordinary computation, and the alternate minimum tax under s.206(2) was not tested because the question at s.206(2)(c) was left unanswered. This figure is the tax on total income and not a finding that no minimum charge applies.
The alternate minimum tax was not tested, because the question at s.206(2) above is unanswered. That is not the same as a finding that no minimum charge applies.
01 / s.202(1) against Part I-B, Paragraph A
Two columns, each on its own total income
The saving, on two stated incomes
default regime lower₹ 91,520
The default regime is lower by ₹ 91,520 on the figures entered: ₹ 1,92,400 under the default regime against ₹ 2,83,920 under the old regime. Each column was computed on its own total income, so the difference between them is a saving the assessee can act on. Read it with the stickiness note beside it.
Why this one is worth acting on
The comparison is the reason to open a tax calculator at all, and it is the thing a calculator running both columns on one total income gets wrong. For almost every client the old regime's total income is the lower of the two, by the deductions the default regime takes away, so a difference struck across a single income is overstated by the tax on what your client is claiming.
Each column was computed on its own total income, so the difference between them is a saving the assessee can act on. Read it with the stickiness note beside it.
Each column rests on its own total income, so the difference is a saving. On the figures entered the choice is annual and nothing carries forward, so this is a saving for this year and the section below says what would change that.
What the choice costs after this year
With no business or profession income the choice is free and annual. s.202(4) has the option exercised along with the return for the tax year, so it can be made again from scratch next year and nothing carries forward. The election is made rule 136 of the Income-tax Rules, 2026, in the return itself.
Every state the option can be in (5)
| The state | What follows from it | On your figures |
|---|---|---|
| No business or profession income | With no business or profession income the choice is free and annual. s.202(4) has the option exercised along with the return for the tax year, so it can be made again from scratch next year and nothing carries forward. The election is made rule 136 of the Income-tax Rules, 2026, in the return itself. | this client |
| Business income, option not yet exercised | Choosing the old regime here is a one way door. Under s.202(4) the option applies to subsequent tax years once exercised, it may be withdrawn only once, and after that withdrawal the person is never again eligible while they have business or profession income. Compare more than one year before exercising it. The election is made rule 136 of the Income-tax Rules, 2026, in the return itself. | not this client |
| Business income, option already in force | The option is already in force and applies to this year without being exercised again. Moving to the default regime means WITHDRAWING it, and that withdrawal is the only one available: after it the person is never again eligible for the old regime while they have business or profession income. Read the default regime column as costing the withdrawal, not merely as a lower number. | not this client |
| Business income, the one withdrawal already used | The single withdrawal has already been used. s.202(4) says that after it the person shall NEVER be eligible to exercise the option again, except where they cease to have any business or profession income. On the figures entered the old regime column is not available and the default regime applies. Check the year the withdrawal was made before relying on this. | not this client |
| Business income, and the question was not put | Whether the old regime option is already in force was not stated, and it changes what this comparison means rather than what either number is. With business or profession income s.202(4) makes the option sticky: it applies to later years, may be withdrawn only once, and after that withdrawal the person is never again eligible while they have such income. Answer that question before acting on the saving. | not this client |
02 / s.206(1) and s.206(2)
The minimum charges, and where they stand today
Tax payable
not tested₹ 1,92,400
The alternate minimum tax was NOT TESTED, which is not the same as not applying. The question at s.206(2)(c), whether a qualifying deduction was claimed, was left unanswered.
What each of these states means
These two provisions are the reason the figure at the top of this page is not always the tax on total income. Where one of them binds, the statute deems another figure to be the total income and charges tax on that instead, and a page that prints the ordinary computation as the headline is out by the whole gap.
The floor under s.206(2) is ₹ 20,00,000 of adjusted total income for this class of assessee.
s.206(2)(j) requires a report from an accountant certifying the adjusted total income and the alternate minimum tax, before the specified date.
03 / Why the income goes in five boxes and not one
Two measures of total income, and the surcharge needs both
The two measures, the rate table and the rebate
Two of the surcharge clauses test total income including dividend and the capital gains under s.196, s.197 and s.198, and two test it with those taken out. One combined figure cannot answer both tests, so past the thresholds where the two measures part company a calculator that takes a single total income is guessing.
The two measures
₹ 19,25,000
Total income as entered. The two figures under it are what the surcharge clauses actually read, and they part company as soon as there is a dividend or a capital gain in the mix.
| Class of income | Provision | Rate | Tax |
|---|---|---|---|
| On the rate table | s.202(1) | slab | ₹ 1,85,000 |
s.156(2)
The rebate is available. It is set against ₹ 1,85,000 of tax, capped at ₹ 60,000, and it runs out at a total income of ₹ 12,00,000. On these figures it comes to ₹ 0.
s.19(1) (Table: Sl. No. 2)
The standard deduction available is ₹ 75,000, from a stated ₹ 75,000. It is SHOWN here and is not subtracted: total income is already net of it, so taking it off again would deduct it twice.
04 / FA 2026 s.3(4)(b) (Table: Sl. No. 10)
The surcharge, and where the arithmetic jumps
The surcharge and marginal relief, worked
The surcharge is where a rupee of income can cost six figures, and the marginal relief formula does not reach every one of those jumps. Both are set out here with the figure each is worth, rather than left as a discontinuity for a reader to find by moving the income up and down.
Surcharge on these figures
₹ 0
No surcharge arises on these figures.
Marginal relief
Does not apply
No relief band reaches these figures, so the charge before relief stands.
05 / s.202(1), and what it adds back
The price of the lower rates, item by item
What the default regime takes away (8)
The default regime charges on its own table and allows fewer deductions. This is the list for the year and regime selected, taken from the provision rather than from a summary, so a reader can see what that column costs before acting on the figure it produces.
s.202(2)(a)(i) and (ii)
Most of the Schedule III exemptions, including the house rent allowance and the leave travel concession, and the s.10(14) special allowances other than those prescribed.
s.19(1) (Table: Sl. No. 1)
Professional tax on employment. The standard deduction at Sl. No. 2 is NOT added back and survives at 75,000.
s.22(1)(b)
Interest on borrowed capital for a self occupied house property.
s.33(8)
Additional depreciation.
ss.45(3), 46, 47(1)(a), 48 and 49
Scientific research, the specified business deduction, tea, coffee and rubber development, and the site restoration account.
Chapter VIII
The whole of it, other than s.124(1) and s.124(2) employer contributions to the pension scheme, s.125(2) for an Agniveer, and s.146. Note that s.124(2) raises the private employer limit to 14 percent under this regime, while the employee's own contribution under s.124(3) and (4) is added back.
s.202(2)(b)
No carry forward loss or depreciation attributable to any of the above, and no set off of a house property loss against any other head.
FA 2026 s.56
There is NO add back of the special economic zone deduction in this year. FA 2026 omitted s.202(2)(a)(iii) with effect from 1 April 2026, which is the date the 2025 Act itself commences, so the add back never had an operative tax year.
What actually moves between the two years
The year on the toggle is not a label. These are the lines that differ, each with the provision that moved it, so the two years can be compared rather than one asserted to be the other.
| FY 2025-26 | Tax year 2026-27 | What moved it |
|---|---|---|
| Income-tax Act, 1961, charged by FA 2026 Part I-A | Income-tax Act, 2025, charged by FA 2026 Part I-B and s.202 | s.536(1) and s.536(c) of the Income-tax Act, 2025 |
| 15 percent of book profit | 14 percent of book profit | FA 2026 s.59(a)(i), substituting 14 percent in s.206(1)(b)(ii) |
| 60 percent | 30 percent | FA 2026 s.55, substituting 30 percent for 60 percent in s.195(1) |
| turnover in previous year 2023-24, ceiling 400 crore | turnover in tax year 2024-25, ceiling 400 crore | Part I-A Paragraph E.I and Part I-B Paragraph E.I |
| the s.10AA deduction is added back under the default regime | no equivalent add back: FA 2026 s.56 omitted it | FA 2026 s.56, omitting s.202(2)(a)(iii) |
| the old regime is elected in Form 10-IEA | the election is in the return itself and there is no Form 10-IEA | rule 136 of the Income-tax Rules, 2026 |
| s.115BAC(6) is terse and the stickiness is not spelt out | s.202(4)(a) spells out the due date, that the option applies to later years, the single withdrawal and the permanent bar | s.202(4) |
| s.16(ia) keys 75,000 to clause (ii) of s.115BAC(1A), which FA 2025 confined to AY 2025-26 | s.19(1) Table Sl. No. 2 states 75,000 by reference to s.202(1) | Finance (No. 2) Act 2024 s.10 and FA 2025 s.25(a) |
The column in the darker ink is tax year 2026-27, which is the year this page is computing.
06 / Figures that ship editable, and notes on the working
What this page could not show you a source for
Figures that ship editable (1)
Each of these is a number the working needs and the sources read for it do not settle. They are fields in the controls rather than constants, because printing an unverified figure as though it were the law is the failure that is hardest to spot from the outside.
| The figure | Why it is not a constant | What would settle it | In use |
|---|---|---|---|
| Health and Education Cess | 4 percent is stated for both years, at FA 2026 s.3(15) for tax year 2026-27 and s.2(6) for FY 2025-26. It is editable because it has a one year shelf life: neither Income-tax Act levies a cess, the 2025 Act's only surcharge provision defers to any Central Act, and FA 2026 speaks to these two years and nothing later. The rate is not a constant of the system. | The Finance Act for the year in question. | 4% |
Notes the working raised on these figures (8)
- There is no age based higher exemption under s.202(1). The 60 and 80 bands live only in the old regime, at Part I-B, Paragraph A items (II) and (III).
- The surcharge here is read off FA 2026 s.3(4)(b) (Table: Sl. No. 10) and NOT off Part I-B, Paragraph F, Table 1. FA 2026 carves a person chargeable under s.202 out of Paragraph F in terms, so the default regime never touches it.
- The default regime surcharge tops out at 25 percent and the 37 percent rate is not capped but absent: the table has no 5 crore step, and its 25 percent clause is open ended above 2 crore. The top marginal rate including cess is 39 percent here against 42.744 percent in the old regime.
- s.156(3) caps the rebate at the tax computed at the s.202(1) rates. Under this regime the rebate reaches the slab tax and nothing else: the capital gains lines, winnings and unexplained income are all outside it.
- The taper in the rebate runs out at a total income of about 12,70,588, where the tax and the excess over 12 lakh meet. It is NOT 12,75,000, which is a different figure: the SALARY at which a 75,000 standard deduction brings total income down to exactly 12,00,000. The surcharge does not start until 50 lakh, so the rebate and the surcharge never meet and the order between them does not move any number.
- Whether a deduction under Chapter VIII-C other than s.149, or under s.46, was claimed was not stated, so the alternate minimum tax was NOT TESTED. That is different from not applying: this page has not decided that the charge is out. Answer it and enter the adjusted total income to have the charge tested at 18.5 percent.
- The standard deduction under s.19(1) (Table: Sl. No. 2) is 75,000 in this regime, capped at the salary. It is SHOWN here and NOT subtracted: total income is by definition already net of it, so taking it off a figure you have entered as total income would deduct it twice. Check your own working against this line.
- Professional tax under s.19(1) (Table: Sl. No. 1) is added back in this regime. The STANDARD DEDUCTION at the next row is not, and survives. The rows carry the meaning, so reading the section as a whole strips a deduction the assessee is entitled to.
07 / What this page does not do
Total income in, tax out, and nothing in between
This page computes no head of income: total income under each head is what you enter.
No head of income is computed
Why
No house rent allowance working, no house property computation, no capital gain from cost and consideration, no business income, and no totalling of the deduction chapter. Total income under each head is an INPUT here: enter it after the deductions you are taking.
No instalments and no interest
Why
Advance tax instalments, the interest for shortfall and the interest for deferment are a separate page, which takes the tax computed here as its input. It is linked below rather than duplicated.
No agricultural income aggregation
Why
The rule that aggregates net agricultural income above the figure the Finance Act names sits in that Act and is named rather than computed here. Where your client has agricultural income above it, this page understates the tax.
No non-resident special rates
Why
A non-resident individual gets the rate tables and the surcharge tables here, and no rebate under either Act, because both open the rebate with the words "resident in India". The special rates for a non-resident are their own chapter and are not carried on this page.
No co-operative society and no local authority
Why
Their rates were not carried into this page, so they are not in the assessee picker. An option that quietly charged one of them at another class's rate would be worse than an omission.
No rounding, and no return
Why
The arithmetic is exact and is not rounded off: the rounding provision was not read for this page. Nothing here is a return, a certificate or advice. It is a working you can tick against your own, filed under s.263(1).
08 / One client at a time
The hard part is the second income figure
A regime comparison needs both total incomes, and the old regime one is a computation of its own, which this page leaves to you. No OptiVida module computes total income. OptiReports reads the client's books from Tally for the CMA and the tax audit report.
Nothing leaves this page
Every figure is computed in your own browser as you type. Nothing is sent, stored or logged, and there is no account. Close the tab and the working is gone.
Assumptions and basis
What this calculator applied
- Law applied
- Tax year 2026-27, Income-tax Act, 2025, as amended by the Finance Act, 2026
- Rates checked
- Checked on 19 September 2026
26 notes on how the law was applied
- Tax year 2026-27 is the first year of the Income-tax Act, 2025, and is charged by Part I-B of the First Schedule to the Finance Act, 2026 together with s.202 of that Act. There is no assessment year: the Act uses tax year throughout.
- The default regime under s.202(1) needs no election and is the default. The surcharge on it is NOT in Paragraph F: FA 2026 s.3(4)(a) carves a person chargeable under s.202 out of that Paragraph in terms, and puts them on a shorter table at s.3(4)(b) Sl. No. 10 which tops out at 25 percent, has no 5 crore step and has three marginal relief thresholds against the old regime's four.
- The minimum alternate tax for this year is 14 PERCENT and not 15. FA 2026 s.59(a)(i) substituted 14 percent for 15 percent in s.206(1)(b)(ii), in force 1 April 2026, which is the date the Act itself commences. A unit in an International Financial Services Centre stays at 9 percent. This is the single most falsifiable figure on the page and the one most likely to be copied wrong from a secondary source.
- Unexplained income under s.195(1)(i) is 30 PERCENT and not 60. FA 2026 s.55 substituted it, and the amendment is footnoted in the revised bare law. With the flat 25 percent surcharge and cess the effective rate is 39 percent, not 78.
- There is no add back of the special economic zone deduction in this year. FA 2026 s.56 omitted s.202(2)(a)(iii) with effect from 1 April 2026, so it never had an operative tax year under this Act. Carrying the 1961 default regime's equivalent add back across is wrong.
- There is no Form 10-IEA under the Income-tax Rules, 2026. Rule 136 puts the election in the return itself. Anything telling a client to file that form for this year is out of date.
- The domestic company 25 percent rate is tested on turnover in TAX YEAR 2024-25 for this year, against the same 400 crore ceiling. The base year moves with the year and the input label moves with it.
- s.202(4) makes the old regime option sticky for anyone with business or profession income: it applies to later years, may be withdrawn only once, and after that withdrawal the person is never again eligible while they have such income. The comparison on this page reports that rather than presenting the two columns as interchangeable.
- THIS PAGE TAKES TOTAL INCOME AND GIVES TAX. It computes no head of income. There is no house rent allowance working, no house property computation, no capital gain from cost and consideration, no business income and no totalling of Chapter VIII or Chapter VI-A. Put in the figure under each head after the deductions you are taking, and this returns the tax on it.
- The income is entered SPLIT and not as one figure, and that is not a convenience. The surcharge clauses test total income INCLUDING dividend and the capital gains under s.196, s.197 and s.198 in two of their limbs and EXCLUDING them in two others. Without the split the surcharge above 2 crore cannot be computed at all, in either direction.
- The deductions the default regime takes away are listed on the page from s.202 and are not computed. Under that regime almost all of Chapter VIII goes; under the old regime enter your figures net of what you are claiming.
- The standard deduction is SHOWN and is not subtracted. Total income is already net of it, so taking it off again would deduct it twice. It survives the default regime at 75,000, capped at the salary, because s.202 adds back the professional tax row of s.19 and not the standard deduction row.
- No agricultural income aggregation. The rule biting where net agricultural income exceeds 5,000 is in the Finance Act and is named rather than computed. Where your client has agricultural income above that figure this page understates the tax.
- No co-operative society. Its rates and its two concessional regimes were verified and are not offered here, so adding them later is configuration rather than a correction.
- No non-resident special rates. A non-resident individual gets the slab tables and the surcharge tables here, and the rebate is blocked for them because both Acts open with "resident in India". The special rates for a non-resident are their own chapter and are out of scope.
- No tax deducted at source, no advance tax and no interest. That is the advance tax page, which takes the tax from here as its input.
- The arithmetic is exact and is not rounded to the nearest ten rupees. The rounding provision was not read for this page, so round the printed figures yourself the way your return does.
- Whether the old regime rebate reaches tax on winnings or on unexplained income is not settled by the text read here. The default is that it does NOT, which is the conservative direction, and it is a switch rather than a finding.
- Where the marginal relief ceiling is struck, the tax and surcharge at the threshold are computed on ordinary income. The formula says tax on "an amount as specified in column C" and does not say what that hypothetical is made of. Where your income carries dividend or capital gains the two readings differ and both figures are on the page.
- The 15 percent cap on the surcharge attributable to dividend and capital gains is applied as a rate rule, before the marginal relief ceiling, which is a total rule. Neither clause says which comes first and this is the implementation's assumption.
- The charge on unexplained income and its flat 25 percent surcharge are held OUTSIDE the marginal relief ceiling. That row has no threshold and the relief table's column B does not list it. Whether the relief provision reaches the special rate rows at all is genuinely open: its opening words limit it to a person having total income chargeable under the regime and minimum tax provisions, while its own column B lists the special rate rows. This page takes the reading that does not let a ceiling struck on the ordinary tables cap a flat rate charge, which errs towards more tax rather than less.
- The surcharge on a charge under s.194 is read off the graded row for this person. The row by row listing of which sections each surcharge entry covers was not separately verified for that charge, so check it where winnings are a material part of the total.
- THE OLD AND DEFAULT COLUMNS DO NOT SHARE A TOTAL INCOME, and this page will not pretend they do. Enter the old regime's own figure as well as the default regime's: it is lower by the standard deduction difference and by every deduction s.202 takes away. Where only one figure is given, the page names the column that is resting on the other's figure and reports NO SAVING, because a saving computed across one income is overstated by the tax on every deduction the client is claiming.
- WHERE THE MINIMUM ALTERNATE TAX OR THE ALTERNATE MINIMUM TAX BINDS, the payable figure on this page is that charge plus a surcharge and cess step, and the tax on total income beside it is not the liability. The surcharge and cess on the minimum tax charges themselves is the one step in that figure that is an ASSUMPTION: FA 2026 s.3 lists s.206 among the sections at several rows, which is the hook, but not every row was read to confirm the ladder matches the ordinary one per class of assessee, and no marginal relief is applied to it. Check that step before relying on the total.
- THERE IS NO MARGINAL RELIEF ACROSS THE SURCHARGE RATE STEP THAT CLAUSES (iii) AND (iv) TRIGGER. Those clauses read the rate off total income EXCLUDING dividend and capital gains; Part I-B, Paragraph F, Table 2 selects its band on TOTAL INCOME. So a client whose ordinary income crosses 2 crore while capital gains sit alongside steps from 15 to 25 percent with column C unmoved, and the relief comes out at nil. The discontinuity is in the drafting, not in this page: the ceiling is left keyed to total income as enacted and the step is reported with the figure it costs, rather than re-keying column C to a measure the Table does not name.
- Nothing here is a return, a certificate or advice. It is a working you can tick against your own.
This is a working estimate, not advice, and it will not cover every case. Rates and thresholds change. Check the figure against the law as it stands before you rely on it or sign anything. All calculators