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India Tax Guide Hub 2026: Income Tax, Rates & Calculator

KEY INSIGHT
India's hidden trap: the 30% top rate becomes 42.7% after surcharge (up to 37%) and 4% cess. A ₹15 lakh earner pays ~₹2.8 lakh (~18.5%) under the New Regime (income tax + cess + EPF). Old vs New Regime choice: take New if you don't have ₹2.5+ lakh in 80C/80D deductions. ₹4 lakh is the zero-rate band (raised from ₹3L in Budget 2025); up to ₹12 lakh effectively tax-free with Section 87A rebate. Advance tax due quarterly if liability exceeds ₹10,000.
At a glance

Key Facts

Tax Rate Range
0-30%
Tax Type
Progressive - rate increases with income
Filing Deadline
July 31 (October 31 if audit required)
Introduction

India offers two parallel tax regimes: the New Regime (lower rates 0-30%, no deductions) and Old Regime (higher rates but ₹1.5+ lakh in deductions under Section 80C/80D). New Regime is default from FY2024-25. But the 30% headline rate is misleading—add surcharge (10-37% of tax for incomes above ₹50 lakh) and 4% health & education cess. True top rate reaches 42.7% for ₹5 crore+ earners. A ₹15 lakh earner pays roughly ₹2.8 lakh (~18.5%) under New Regime (income tax + cess + EPF), or ~₹97,500 (~6.5%) income tax and cess alone. TDS (Tax Deducted at Source) means most salaried employees have tax auto-deducted. Advance tax quarterly payments required if liability exceeds ₹10,000. Filing deadline is July 31 (October 31 if audited). NRIs are taxed only on India-sourced income. Use our calculator to estimate your Indian tax liability.

This hub links to every India tax guide and calculator on CountryTaxCalc — covering income tax rates, expat obligations, and tools to calculate your take-home pay.

Section 01

India Tax Guides

Detailed India tax guides on CountryTaxCalc:

Section 02

India Income Tax Calculator

India's income tax uses 7 tax slabs from 0% to 30% (New Regime). Use the calculator to estimate your take-home pay after income tax:

IncomeRate
₹0 - ₹400,0000%
₹400,000 - ₹800,0005%
₹800,000 - ₹1,200,00010%
₹1,200,000 - ₹1,600,00015%
₹1,600,000 - ₹2,000,00020%
₹2,000,000 - ₹2,400,00025%
Over ₹2,400,00030%
Section 03

Related Hubs

India tax connects with these hubs on CountryTaxCalc:

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FAQ

Frequently Asked Questions

What are India's income tax slabs for 2026-27 (New Regime)?

New Regime slabs for FY 2026-27: 0% up to ₹4 lakh, 5% on ₹4-8 lakh, 10% on ₹8-12 lakh, 15% on ₹12-16 lakh, 20% on ₹16-20 lakh, 25% on ₹20-24 lakh, and 30% above ₹24 lakh. Standard deduction of ₹75,000 available. Section 87A rebate makes income up to ₹12 lakh effectively tax-free. New Regime is default but you can opt for Old Regime.

Old Regime vs New Regime: which should I choose?

Choose Old Regime if you have significant deductions: Section 80C (₹1.5 lakh for PF, ELSS, insurance), 80D (health insurance ₹25,000-75,000), HRA exemption, or home loan interest (₹2 lakh). Rule of thumb: if deductions exceed ₹2.5-3 lakh, Old Regime saves money. Salaried employees can switch each year; business owners must commit for the year.

What is the surcharge on Indian income tax?

Surcharge is extra tax on high earners: 10% surcharge on income ₹50 lakh-1 crore, 15% on ₹1-2 crore, 25% on ₹2-5 crore, and 37% above ₹5 crore. The surcharge applies on the tax amount, not income. Combined with 4% cess, a ₹5 crore+ earner pays 30% × 1.37 × 1.04 = 42.7% effective marginal rate.

What is TDS and advance tax in India?

TDS (Tax Deducted at Source) means employers, banks, and payers automatically deduct tax from salary, interest, rent, etc. Most salaried employees need no action—TDS covers their liability. Self-employed and those with non-TDS income exceeding ₹10,000 tax liability must pay advance tax quarterly: 15% by June 15, 45% by Sept 15, 75% by Dec 15, 100% by March 15.
Disclaimer:This hub provides general information about India taxation for educational purposes only. Tax rules change frequently and individual circumstances vary. Always verify current rates and rules with the official India tax authority or a qualified local tax adviser. This is not tax or legal advice.
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