Income Tax Calculator Excel (Salaried) – AY 2026-27, Old vs New Regime
The filing-season workbook for salaried employees and pensioners: both regimes computed side by side for FY 2025-26 income, with the pieces most sheets miss – Section 10 exemptions correctly split between the regimes, let-out house property with the right loss rules, and the 87A marginal relief that decides the tax for incomes just above Rs 12 lakh.
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What you get
Section 10 done right
Gratuity, leave encashment, commuted pension and VRS stay exempt in BOTH regimes – entered once, applied to both columns. HRA, LTA, children education and food coupons sit in a separate old-regime-only block so nothing double-counts.
House property built in
Self-occupied interest (2 lakh old-regime cap) plus a let-out block that computes income or loss – with the 2 lakh set-off cap in the old regime and the correct nil set-off in the new.
87A marginal relief
Taxable income of Rs 12.0-12.7 lakh in the new regime pays only the excess over 12 lakh – the workbook tapers it correctly instead of the cliff most sheets show.
Surcharge marginal relief
At every threshold (50L/1Cr/2Cr/5Cr) the extra tax never exceeds the extra income – with the working shown.
Every cap automated
80D by age and parents, employer NPS at 14%/10% by sector, 80TTA/80TTB picked by age, family pension 57(iia) at 25K/15K per regime.
Clear verdict
Total tax, effective rate and suggested monthly TDS for both regimes, with a one-line recommendation – including the Form 10-IEA note if Old wins.
Sheet-by-sheet overview
Workbook contents (3 sheets)
- Cover – what is covered, the key numbers and the due-date note
- Calculator – 8 guided blocks: filing details, income, Section 10 (both-regimes then old-only), Section 16, house property, Chapter VI-A, and the side-by-side computation with the marginal-relief workings visible
- Reference AY 2026-27 – the new-regime slab table plus a what-survives-in-which-regime matrix you can keep open while advising
How to use
Fill the yellow cells top to bottom – age, salary, exemptions, deductions, house property. The computation block shows both regimes line by line: gross to net salary, house property after regime rules, Chapter VI-A per regime, tax, rebate with marginal relief, surcharge and cess. The orange verdict line tells you which regime wins and by how much, and the suggested monthly TDS helps you check your employer deduction. Sheets are protected so formulas stay safe; every input cell is open.
This workbook is for AY 2026-27 only (returns being filed now). The next-year version releases after the December budget cycle – subscribe on download and it lands in your inbox automatically.
Frequently asked questions
Which year does this workbook cover?
AY 2026-27 – income earned in FY 2025-26, the return being filed this season. It applies the Income-tax Act 1961 as amended by the Finance Act 2025; the increased allowances you may have read about (Rs 3,000 children education etc.) belong to NEXT year and are correctly kept out.
Are gratuity and leave encashment really exempt in the new regime?
Yes – the new regime removes HRA, LTA and most personal allowances, but retirement receipts like gratuity (up to Rs 20 lakh non-govt), leave encashment (Rs 25 lakh), commuted pension and VRS (Rs 5 lakh) remain exempt in both regimes. The workbook has a dedicated block for them.
My income is just above Rs 12 lakh – is the whole slab tax payable?
No – marginal relief caps the new-regime tax at the amount by which income exceeds Rs 12 lakh, up to about Rs 12.7 lakh. The workbook computes it automatically – this band is where most online sheets go wrong.
Can I claim a let-out property loss in the new regime?
Within the house property head only – a let-out loss cannot be set off against salary or other income in the new regime (the old regime allows set-off up to Rs 2 lakh). The workbook applies each regime’s rule to the same inputs.
Why do some cells show no formula in the formula bar?
Formula cells are protected and hidden to keep the computation intact – every input you need is open. Nothing is locked that you would want to type in.
Will the workbook be updated?
Yes – leave your email in the optional popup when downloading and every new version (law changes, next AY) is mailed to you automatically.