Sources Tax Year 2026–27

Income tax

Slab rates, the standard deduction, the section 87A rebate and its marginal relief, surcharge bands and their marginal relief, and Health & Education Cess.

• Income-tax Act, 2025
  Parliament of India
  In force from 1 April 2026. Replaces the Income-tax Act, 1961 and introduces "tax year" in place of "previous year" and "assessment year".
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• Income Tax Department: tax slabs and rates for salaried individuals
  Income Tax Department, Government of India
  New regime slabs, the ₹75,000 standard deduction, the ₹60,000 rebate up to ₹12,00,000 of taxable income, and the 25% surcharge cap. The rebate is the provision most people know as Section 87A; in the Income-tax Act, 2025 it is Section 156, and it is available to a resident individual.
  View source
• Health insurance deduction, and the old-regime exemption by age
  Income Tax Department, Government of India
  Premiums for yourself and your family, and for your parents, are capped separately at ₹25,000 each, rising to ₹50,000 where the person insured is a senior citizen. There is no single combined limit. Familiar as Section 80D; Section 126 of the Income-tax Act, 2025. The old regime also raises the basic exemption to ₹3,00,000 for a resident senior citizen and ₹5,00,000 for a resident super-senior citizen.
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• Union Budget and Finance Act documents
  Ministry of Finance, Government of India
  Confirms that the slab structure and rebate carried into Tax Year 2026–27 unchanged.
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EPF, EPS and VPF

Contribution rates, the statutory wage ceiling, the pension split and the declared interest rate.

• Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 and the EPF Scheme, 1952
  Employees’ Provident Fund Organisation
  12% employee and 12% employer contribution, the ₹15,000 monthly wage ceiling, and the 8.33% EPS share capped at ₹1,250 a month.
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• EPS membership and the pension wage ceiling
  Employees' Provident Fund Organisation
  Being an EPF member does not make you an EPS member. Employees who first joined on or after 1 September 2014 on wages above the ₹15,000 ceiling may be in EPF without being in EPS, in which case none of the employer contribution is diverted to the pension scheme. The pensionable salary ceiling remains ₹15,000 a month.
  View source
• Threshold at which interest on employee provident fund contributions becomes taxable
  Income Tax Department, Government of India
  Interest on employee contributions above ₹2,50,000 in a year is taxable where the employer also contributes, and above ₹5,00,000 where it does not. The lower figure is not universal.
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• EPF interest rate notified for FY 2025–26, at 8.25%
  Ministry of Labour & Employment / EPFO, reported by Akashvani News
  The most recent rate declared. The FY 2026–27 rate is normally declared early in 2027, so projections on this site use the 8.25% figure and label it as historical.
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Gratuity

The formula, qualifying service and the exemption ceiling.

• Code on Social Security, 2020
  Ministry of Labour & Employment, Government of India
  In force from 21 November 2025, replacing the Payment of Gratuity Act, 1972. The 15/26 formula is unchanged. A directly employed fixed-term employee qualifies after one year and is paid pro rata, which is not the same as contract labour supplied through a contractor, where the contractor is the employer and the ordinary continuous-service requirement applies. The Code leaves the maximum payable to be notified by the Central Government; we have not obtained a current notification, so nothing here caps the entitlement. The ₹20 lakh figure is the income-tax exemption limit, which is a separate thing.
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Wage definition and salary structure

The expectation that Basic + DA forms at least half of remuneration, which is why the calculator defaults Basic to 50% and flags structures below it.

• Code on Wages, 2019
  Ministry of Labour & Employment, Government of India
  The revised definition of wages took effect on 21 November 2025. It does not require Basic to be any particular share of CTC. It defines wages as basic pay, dearness allowance and retaining allowance, lists the components excluded, and provides that where those excluded payments exceed half of remuneration the excess is added back into wages. That add-back is what gratuity and provident fund are measured against, and it is what the calculator models. The 50% Basic figure used as a default is a modelling choice, not a legal floor.
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Professional Tax

A state levy, so there is a separate source for every jurisdiction. States we could not verify are excluded from the calculation rather than estimated.

• Constitution of India, Article 276
  Government of India
  Caps professional tax at ₹2,500 a year in every state.
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• Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, and its schedule
  Government of Karnataka
  The taxable band reads "₹25,000 and above", so a salary of exactly ₹25,000 attracts tax. The ₹25,000 threshold was already in the 2023 schedule; the 2025 amendment set ₹200 a month with ₹300 in February, bringing the year to ₹2,500. The 2026 amendment, effective 1 April 2026, changed return-filing provisions rather than these salary rates.
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• Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975
  Government of Maharashtra
  Two statutory schedules. The standard one is nil up to ₹7,500 a month, ₹175 to ₹10,000 and ₹200 above; the schedule for women is nil up to ₹25,000 and ₹200 above. February is ₹300 under both. Because the schedules differ, the calculator asks which applies rather than defaulting to the higher one.
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• Telangana Tax on Professions, Trades, Callings and Employments Act, 1987
  Government of Telangana
  Nil up to ₹15,000 a month, ₹150 to ₹20,000, ₹200 above.
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• West Bengal State Tax on Professions, Trades, Callings and Employments Act, 1979
  Government of West Bengal
  Graduated monthly scale from ₹110 to ₹200, nil up to ₹10,000 a month.
  View source
• Gujarat Panchayats, Municipalities, Municipal Corporations and State Tax on Professions, Trades, Callings and Employments Act, 1976
  Government of Gujarat
  ₹200 a month above ₹12,000 of monthly salary.
  View source
• Odisha State Tax on Professions, Trades, Callings and Employments (Repeal) Ordinance, 2026
  Government of Odisha
  Repealed professional tax with retrospective effect from 1 April 2026. Employees payrolled in Odisha have no professional tax deduction in Tax Year 2026–27.
  View source

States we do not calculate Professional Tax for

Several states charge professional tax through local bodies, assess it on annual rather than monthly income, or publish figures that disagree between sources. Rather than pick one and present it as fact, the calculator leaves those states out and says so on screen. They are listed in the state dropdown under “Professional Tax not included”.

• Andhra Pradesh. We have not been able to confirm the current Andhra Pradesh salary schedule against an issuing-authority document, so no amount has been included.
• Assam. We have not yet verified the current Assam schedule against a state source.
• Bihar. Bihar assesses PT on annual income and we have not yet verified the current bands against a state source.
• Chhattisgarh. We have not yet verified the current Chhattisgarh schedule against a state source.
• Jharkhand. Jharkhand assesses PT on annual income and we have not yet verified the current bands against a state source.
• Kerala. Kerala levies PT half-yearly through local self-government bodies, so the amount depends on your panchayat or municipality rather than a single state slab.
• Madhya Pradesh. Madhya Pradesh works off annual income bands rather than monthly salary, and the published band boundaries are not consistent between sources.
• Manipur. We have not yet verified the current Manipur schedule against a state source.
• Meghalaya. We have not yet verified the current Meghalaya schedule against a state source.
• Mizoram. We have not yet verified the current Mizoram schedule against a state source.
• Nagaland. We have not yet verified the current Nagaland schedule against a state source.
• Puducherry. Puducherry collects PT half-yearly and we have not yet verified the current bands.
• Punjab. Punjab charges a State Development Tax rather than a profession tax, and sources disagree on whether it applies to every salaried employee. Check your payslip.
• Sikkim. We have not yet verified the current Sikkim schedule against a state source.
• Tamil Nadu. Tamil Nadu collects PT half-yearly through municipal bodies, and the slab amounts published for Greater Chennai Corporation differ from those used elsewhere in the state. We would rather show nothing than pick one.
• Tripura. We have not yet verified the current Tripura schedule against a state source.

If you know one of these well enough to point us at the current notification, contact@inhandcalculator.in.

States where we deduct nothing

No professional tax is deducted for these, which matches every source we have seen. We have not separately confirmed the absence of a levy against each state's own material, so they are listed here as unverified rather than as a positive finding.

• Andaman & Nicobar Islands
• Arunachal Pradesh
• Chandigarh
• Delhi
• Goa
• Haryana
• Himachal Pradesh
• Jammu & Kashmir
• Ladakh
• Rajasthan
• Uttar Pradesh
• Uttarakhand

Odisha is different: its levy was repealed with effect from 1 April 2026, and that is a positive finding rather than an absence of one.

Conflicts and open questions

Where credible sources disagree, we record the disagreement rather than picking one quietly:

• Andhra Pradesh professional tax. We could not confirm the current salary schedule against an issuing-authority document, so nothing is deducted for it.
• Tamil Nadu professional tax. Half-yearly slab amounts published for Greater Chennai Corporation differ from figures quoted for the rest of the state. Not calculated.
• Punjab. Punjab levies a State Development Tax rather than a profession tax, and sources disagree on whether it applies to all salaried employees. Not calculated.
• The maximum gratuity payable. The Code on Social Security leaves this to be notified by the Central Government. We have not obtained a current notification, so no payment cap is applied. The ₹20 lakh figure used on the site is the income-tax exemption limit, which is well supported and is a different thing.
• The Code on Wages add-back in practice. The statute is clear that excluded components above half of remuneration are added back into wages. How individual employers are applying that to payroll is still settling, so treat the statutory wage figure the calculator shows as the legal position rather than a prediction of your payslip.

A fuller research record, including what was checked and when, is maintained alongside the site.