Question 1

How much tax on ₹12 lakh salary in FY 2026-27?

Accepted Answer

Zero, under the new regime. The ₹75,000 standard deduction takes taxable income to ₹11.25 lakh, and the Section 87A rebate of up to ₹60,000 wipes out the slab tax. Even ₹12.75 lakh gross salary can still be tax-free. This holds for FY 2025-26 and FY 2026-27 — Budget 2026 kept the slabs unchanged.

Question 2

What are the new regime tax slabs for FY 2026-27?

Accepted Answer

0–₹4L: 0%, ₹4–8L: 5%, ₹8–12L: 10%, ₹12–16L: 15%, ₹16–20L: 20%, ₹20–24L: 25%, above ₹24L: 30%. Salaried taxpayers get a flat ₹75,000 standard deduction.

Question 3

Which regime should I choose in FY 2026-27?

Accepted Answer

New regime wins for most people — especially incomes below ₹15–16 lakh — unless your old-regime deductions (80C ₹1.5L, HRA, home loan ₹2L, NPS, 80D) exceed roughly ₹6–8 lakh. This calculator compares both and shows the exact saving.

Question 4

What is the Section 87A rebate and marginal relief?

Accepted Answer

The 87A rebate (up to ₹60,000 in the new regime) makes taxable income up to ₹12 lakh tax-free. Marginal relief ensures that if your taxable income is just above ₹12 lakh (up to ~₹12.75L), your tax never exceeds the amount above ₹12 lakh.

Question 5

Do equity gains affect the 87A rebate?

Accepted Answer

Yes. If you have any taxable equity STCG (20%) or LTCG (12.5%) in the year, the 87A rebate is not available at all — your salary income is taxed from the first slab. Tick the equity gains option in the calculator to see the impact.

Question 6

What deductions still work in the new regime?

Accepted Answer

Very few: only the employer NPS contribution under 80CCD(2) (up to 14% of basic) and the ₹75,000 standard deduction. 80C, HRA, home loan interest and 80D only reduce tax in the old regime.

Question 7

What is the old regime standard deduction?

Accepted Answer

₹50,000 for salaried employees and pensioners. The old regime 87A rebate is ₹12,500, making taxable income up to ₹5 lakh tax-free. Senior citizens get higher nil slabs (₹3L for 60-79, ₹5L for 80+).

Question 8

How is surcharge and cess calculated?

Accepted Answer

Surcharge applies on tax for income above ₹50 lakh (10%), ₹1 crore (15%), ₹2 crore (25%) and ₹5 crore (37% old regime / 25% capped new regime). A 4% Health & Education cess is added on tax plus surcharge.