Income Tax Computation FY 2025-26 (AY 2026-27): All Heads, Old vs New Regime

Q: How much income is tax-free for AY 2026-27?

Under the new regime, taxable income up to Rs 12 lakh is tax-free because of the Rs 60,000 rebate under Section 87A; for salaried taxpayers the Rs 75,000 standard deduction lifts the effective tax-free salary to about Rs 12.75 lakh. Under the old regime, the Section 87A rebate makes income up to Rs 5 lakh tax-free. Capital gains taxed at special rates are outside this limit.

Computation of Total Income & Tax

Build a full computation of income across all five heads for FY 2025-26 (AY 2026-27), claim your deductions, and see your tax under the old and new regimes side by side. Get the computation emailed to you as a PDF.

In a nutshell. A computation of income for FY 2025-26 (AY 2026-27) adds up your income under the five heads — salary, house property, capital gains, other sources and business/profession — subtracts your Chapter VI-A deductions to reach total income, then applies the tax. Under the new regime there is nil tax on taxable income up to ₹12 lakh (about ₹12.75 lakh of salary after the ₹75,000 standard deduction); the old regime can still win if your 80C, 80D, HRA and home-loan deductions are large. Capital gains are taxed separately at special rates and do not get the ₹12 lakh rebate. Enter your figures below to compare both regimes and email yourself the PDF.

Your income & deductions

Age group (affects old-regime basic exemption)

I am salaried / a pensioner (adds standard deduction: ₹75k new, ₹50k old)

1. Income from Salary

Gross salary salary + perquisites + taxable allowances

Exempt allowances HRA exemption, LTA — old regime only

2. Income from House Property

Annual rent received let-out property (net of municipal tax)

Home-loan interest — let-out

Home-loan interest — self-occupied old regime, max ₹2L

A standard deduction of 30% is auto-applied to let-out rent. Self-occupied interest is allowed under the old regime only.

3. Capital Gains

STCG on shares / equity MF Sec 111A — taxed 20%

LTCG on shares / equity MF Sec 112A — 12.5% over ₹1.25L

LTCG on property / other Sec 112 — 12.5%, no indexation

STCG on property / other taxed at slab rates

Enter the gain (sale minus cost), not the sale value. Indexation choice, pre-2018 grandfathering and Sec 54/54F/54EC exemptions are not handled here — talk to our CA for those.

4. Income from Other Sources

Interest income FD, savings, bonds

Dividend income

Other income

5. Business / Profession (PGBP)

Net business / professional income after expenses

Deductions (Chapter VI-A)

Old regime only

80C PF, LIC, ELSS, PPF — max ₹1.5L

80CCD(1B) NPS max ₹50k

80D health insurance max ₹1L

Other 80 deductions 80G, 80E, 80TTA/TTB etc.

Allowed under both regimes

80CCD(2) employer NPS

Other allowed (both) 80CCH (Agniveer) etc.

Your computation & tax

Enter your income to build the computation.

Particulars	Old regime	New regime

Get expert help filing your ITR

How this works & what it does not cover. This is an estimate for a resident individual for FY 2025-26 (AY 2026-27). It aggregates the five heads, applies a 30% standard deduction on let-out rent, allows self-occupied home-loan interest (max ₹2L) under the old regime only, and reduces Chapter VI-A deductions (old regime: 80C, 80CCD(1B), 80D and others; both regimes: 80CCD(2) and other allowed). It computes slab tax under both regimes with the Section 87A rebate (₹12 lakh new with marginal relief; ₹5 lakh old), 4% health & education cess, and surcharge for higher incomes (new-regime surcharge capped at 25%). Capital gains are taxed separately at special rates — STCG on equity 20% (Sec 111A), LTCG on equity 12.5% over the ₹1.25 lakh exemption (Sec 112A), other LTCG 12.5% (Sec 112) — and are not covered by the 87A rebate. It does not handle indexation/grandfathering on property, Sections 54/54F/54EC, loss set-off and carry-forward, presumptive income, or relief under Sections 89/90. This is a guide, not tax advice — please confirm with our CA before filing.

From computation to filing

This computation gives you a clear, head-wise view of your total income and the tax under each regime for AY 2026-27. If you only want a quick old-vs-new check on salary income, use our income tax calculator; for gains alone, see the capital gains calculator. To understand the choice better, read new vs old tax regime in 2026 and our ITR filing guide for AY 2026-27.

When you are ready to file, our Saket team handles it end to end — see ITR filing & tax advisory or book a free consultation.

Frequently asked questions

What is a computation of income?

A computation of income is a working that totals your income under the five heads — salary, house property, capital gains, other sources and business or profession — reduces eligible deductions to arrive at total income, and then calculates the tax. This tool produces that working for FY 2025-26 (AY 2026-27) and compares the old and new regimes.

Are capital gains included in the Section 87A rebate?

No. For FY 2025-26, capital gains taxed at special rates under Sections 111A, 112 and 112A are excluded from the Section 87A rebate, even if your total income is below ₹12 lakh. This tool taxes those gains separately — 20% on STCG from equity (Sec 111A) and 12.5% on LTCG (Sec 112/112A), with the first ₹1.25 lakh of equity LTCG exempt.

How much income is tax-free for AY 2026-27?

Under the new regime, taxable income up to ₹12 lakh is tax-free because of the ₹60,000 rebate under Section 87A; for salaried taxpayers the ₹75,000 standard deduction lifts the effective tax-free salary to about ₹12.75 lakh. Under the old regime, the Section 87A rebate makes income up to ₹5 lakh tax-free. Capital gains taxed at special rates are outside this limit.

Can I switch between the old and new tax regime?

Yes. The new regime is the default for AY 2026-27. Salaried individuals can choose between the two regimes every year while filing their return. If you have business or professional income, switching is restricted and is exercised through Form 10-IEA.

Does this computation cover everything in my return?

It covers common cases across all five heads. It does not handle every situation, such as indexation choice or grandfathering on property capital gains, Sections 54/54F/54EC exemptions, loss set-off and carry-forward, or relief under Sections 89/90. For those, our Chartered Accountants in Saket can prepare and file your return. This is a guide, not a substitute for professional advice.

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