That is ₹1,05,300 less than the other regime.
| Standard deduction | - ₹75,000 |
|---|---|
| Taxable income | ₹14,25,000 |
| Tax on slabs | ₹93,750 |
| Rebate | - ₹0 |
| Cess (4%) | ₹3,750 |
| Tax for the year | ₹97,500 |
| Average TDS a month | ₹8,125 |
| Standard deduction | - ₹50,000 |
|---|---|
| Other deductions | - ₹1,75,000 |
| Taxable income | ₹12,75,000 |
| Tax on slabs | ₹1,95,000 |
| Rebate | - ₹0 |
| Cess (4%) | ₹7,800 |
| Tax for the year | ₹2,02,800 |
| Average TDS a month | ₹16,900 |
This is an estimate for planning, not tax, legal or accounting advice. Check figures with a qualified professional before you rely on them.
How it works
The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, so tax year 2026-27 uses the new section numbers. The new (concessional) regime is now section 202 (was 115BAC). The standard deduction is in section 19 and the rebate in section 156 (was 87A). Employers deduct TDS on salary under section 392 (was 192).
The estimate spreads the year's tax evenly over twelve months. Your employer projects it from your declared investments and regime choice, so the real monthly figure can differ.
Formula notes
- New regime slabs (section 202): nil up to ₹4 lakh, 5% to ₹8 lakh, 10% to ₹12 lakh, 15% to ₹16 lakh, 20% to ₹20 lakh, 25% to ₹24 lakh, 30% above.
- New regime standard deduction ₹75,000 (section 19); rebate of up to ₹60,000 when taxable income is ₹12 lakh or less (section 156).
- Old regime slabs: nil up to ₹2.5 lakh, 5% to ₹5 lakh, 20% to ₹10 lakh, 30% above, for an individual under 60. Standard deduction ₹50,000; rebate of up to ₹12,500 when taxable income is ₹5 lakh or less.
- Health and education cess 4% of tax after rebate. Tax for the year = tax on slabs − rebate + cess.
- Not included: surcharge (taxable income above ₹50 lakh), marginal relief just above the rebate limit, senior-citizen slabs, income other than salary, and professional tax.
Sources
- Section 202, Income-tax Act 2025 (slabs)
- Section 19 (standard deduction)
- Section 156 (rebate)
- Sections 123 and 126
- Income-tax Act, 2025 in force from 1 April 2026 (PIB)
Estimate, not tax advice. Check figures with a qualified professional before you rely on them.
Common questions
Which regime is better for me?
It depends on your deductions. The new regime has lower slab rates and no deductions beyond the standard deduction here; the old regime allows HRA, investments and other deductions. The calculator shows both so you can compare.
Is income up to ₹12 lakh tax-free?
Under the new regime, the section 156 rebate of up to ₹60,000 makes tax nil when taxable income is ₹12 lakh or less. With the ₹75,000 standard deduction, that is a salary of about ₹12.75 lakh.
What changed with the Income-tax Act, 2025?
The Act replaced the 1961 Act from 1 April 2026. Section numbers and form names changed (for example 115BAC is now section 202, and Form 16 is now Form 130), while the rates in this calculator are unchanged.
How much TDS will my employer deduct?
Your employer estimates your tax for the year from your salary, regime and declared investments, then deducts it in equal parts over the remaining months. The monthly figure here is the year's tax divided by twelve.
Let payroll work out TDS for every employee
Thoshika Payroll projects tax for each employee, collects regime choices and declarations, and generates Form 130 and Form 138. Start a free trial.