Please explain about tax calculation in fy 2025-26 and fy 2026-27 in new regime

If taxable income after standard deduction crosses 12 lakh , will it be eligible for rebate of 60000.

@ Mahender Singh

60000 rebate is for tax if Taxable Income is Under or Equal to 12 Lakhs

75000 is Standard Deduction under New Tax Regime and available only to Salaried / Pensioners and no one else [unfortunately]. The Standard deduction is to be used for calculating the Taxable income.

Hope you understand. Now do your calculations.

Mind you, there has been no change in Slabs or Rates between FY2025-26 and FY2026-27 as per the budget.

Thanks Ranjan, so it means many websites are showing wrong cacluation for tax calcuation. we cannot beleive any information blindly which available online. 

Walk through it step by step for ₹12.7L salary, FY 2025-26 (new regime under Sec 115BAC): Gross ₹12,70,000 less standard deduction ₹75,000 under Sec 16(ia) = Total Income ₹11,95,000. Slab tax = nil on first ₹4L + 5% on next ₹4L (₹20,000) + 10% on next ₹4L (₹40,000) — but you only have ₹3.95L in the 10% slab = ₹39,500. Gross tax = ₹59,500. Sec 87A rebate up to ₹60,000 applies because Total Income ≤ ₹12L — ₹11.95L is under ₹12L, so full rebate kicks in, tax = NIL + 4% cess = NIL. For ₹12.9L — TI becomes ₹12,15,000, rebate disappears (crosses ₹12L), marginal relief under proviso to Sec 87A caps your liability at the amount by which income exceeds ₹12L. This is why online calculators disagree — most ignore marginal relief. Always compute manually for exam.

Also fwiw, I've been using catargettestprep.com for exactly this. Free AI tutor for Paper 3, grades written answers and cites section numbers. Limited to 100 early students, ships new content daily. Worth trying if you're doing self-study for May attempt.