Income Tax Refund Estimator FY 2026-27 — How Much Will I Get Back?

Quick answer

Your income tax refund is the TDS and advance tax you have already paid minus your actual tax for the year. If the tax deducted is more than the tax you owe, the difference comes back to you after you file and e-verify your return. This refund estimator works out your tax under both regimes, takes the lower one, and subtracts it from the TDS you enter.

How the refund is worked out

The idea is simple. During the year, tax is collected from you in advance — TDS by your employer, your bank or your tenant's company, and advance tax if you paid any yourself. That collection is based on estimates. Your actual tax is known only when the year is over and all income and deductions are counted.

The calculation is:

• Refund = TDS deducted + advance tax paid − actual tax for the year, when the result is positive.
• Tax still payable = actual tax − TDS and advance tax, when the result is negative.

So the whole question is: what is your actual tax? Here the regime matters. The same income can have very different tax under the old and new regimes, and if you are not in business you can choose the cheaper one when you file on time. The refund estimator therefore calculates both and uses the lower figure, as you would when filing.

How to use this refund estimator

The tool needs six inputs. Have your Form 16, bank interest certificates and Form 26AS open while you fill it.

1. Financial year — the year for which you want the refund, for example FY 2025-26 if you are filing in 2026.
2. Your age — below 60, 60 to 79 (senior), or 80 or above (super senior). Age changes the old-regime slabs; the new-regime slabs are the same for everyone.
3. Gross salary / pension (yearly) — your total salary or pension before tax and before the standard deduction. Take it from Part B of Form 16. If you changed jobs, add the salary from all employers.
4. Other income (interest, rent after 30%) — savings and FD interest, dividends, and income from a let-out house after the 30% standard deduction. Leave out capital gains (see the special cases section).
5. TDS deducted + advance tax paid — every rupee of tax already paid for the year: TDS on salary, TDS on interest, TDS on rent or other payments, advance tax and any self-assessment tax already paid. Check Form 26AS so you count only what is actually credited against your PAN.
6. Deductions — 80C, 80D, HRA, home loan (old regime) — the total of the old-regime exemptions and deductions you can claim. This figure is used only in the old-regime calculation.

If you changed jobs during the year, add the gross salary from both Form 16s, and add the TDS from both. Do not take the taxable income figure from either Form 16, because each employer computes it as if it were your only job. The estimator then works out the tax on your combined salary correctly.

The result shows your estimated refund or the balance payable in the headline, your tax and which regime it came from, and a short list: tax under the new regime, tax under the old regime, TDS and advance tax paid, and the refund or balance.

What the estimator does behind the scenes

Knowing the exact steps helps you trust the number and spot when it may not fit your case.

New regime

• Standard deduction of ₹75,000 (or your salary, if it is lower) is taken from salary.
• Other income is added. No other deductions are allowed in this calculation.
• Tax is worked out on the new slabs: nil up to ₹4 lakh, 5% from ₹4 to 8 lakh, 10% from ₹8 to 12 lakh, 15% from ₹12 to 16 lakh, 20% from ₹16 to 20 lakh, 25% from ₹20 to 24 lakh and 30% above ₹24 lakh.
• If taxable income is ₹12 lakh or less, the rebate under section 87A (up to ₹60,000) removes the tax. Just above ₹12 lakh, marginal relief makes sure the tax is not more than the income above ₹12 lakh.

Old regime

• Standard deduction of ₹50,000 (or your salary, if lower) is taken from salary.
• Other income is added and your deductions figure is subtracted.
• Tax is worked out on the old slabs for your age, and the 87A rebate of up to ₹12,500 applies if taxable income is ₹5 lakh or less.

Both regimes

• Surcharge applies above ₹50 lakh (10%), ₹1 crore (15%), ₹2 crore (25%) and ₹5 crore (37% in the old regime; the new regime is capped at 25%), with marginal relief.
• Health and education cess of 4% is added.
• The total is rounded to the nearest ₹10, and the lower of the two is your tax.

Why the lower of the two regimes is used

If you have no business income, you can choose the old or new regime afresh every year in your return, as long as you file by the due date. What you told your employer at the start of the year does not bind you. So the estimator assumes you will pick the cheaper regime. If you plan to file late, remember that a belated return is taxed under the new regime, so look at the new-regime figure in the result instead.

Finally, the tool subtracts your tax from the TDS and advance tax you entered. A positive answer is your estimated refund.

Slabs and limits used

These figures match the tax rules the estimator uses for FY 2025-26 and FY 2026-27.

The estimator does not cap your deductions figure. If you type ₹3 lakh for 80C, it will subtract ₹3 lakh. Always enter only the amount you are allowed — for example, ₹1.5 lakh at most for 80C — or the old-regime tax and your refund will be overstated.

The Income-tax Act, 2025 renumbers these sections from tax year 2026-27. The tool keeps the familiar names such as 80C and 87A, and the rates shown above.

Worked example 1: nil tax, full refund

Anjali has a salary of ₹12,00,000 and FD interest of ₹30,000. Her employer deducted ₹37,000 TDS and her bank ₹3,000, so total TDS is ₹40,000. Her old-regime deductions are ₹2,00,000. She is below 60.

• New regime taxable income: ₹12,00,000 − ₹75,000 + ₹30,000 = ₹11,55,000.
• Tax on slabs: 5% of ₹4 lakh (₹20,000) + 10% of ₹3,55,000 (₹35,500) = ₹55,500.
• Taxable income is not more than ₹12 lakh, so the 87A rebate removes all ₹55,500. New-regime tax: nil.
• Old regime taxable income: ₹12,00,000 − ₹50,000 + ₹30,000 − ₹2,00,000 = ₹9,80,000. Tax: ₹12,500 + ₹96,000 = ₹1,08,500, plus cess ₹4,340 = ₹1,12,840.

Her tax is nil under the new regime. Estimated refund: ₹40,000 − ₹0 = ₹40,000.

Notice that the ₹3,000 TDS on her FD interest also comes back, even though the bank was right to deduct it. The bank does not know her total income; the return is where everything is settled.

Worked example 2: just above ₹12 lakh, with marginal relief

Sameer has a salary of ₹13,00,000, no other income and no deductions. His employer deducted ₹60,000 TDS.

• New regime taxable income: ₹13,00,000 − ₹75,000 = ₹12,25,000.
• Tax on slabs: ₹20,000 + ₹40,000 + 15% of ₹25,000 (₹3,750) = ₹63,750.
• Income above ₹12 lakh is ₹25,000. Marginal relief limits tax to that amount, so the rebate is ₹63,750 − ₹25,000 = ₹38,750.
• Tax after relief: ₹25,000, plus cess of ₹1,000 = ₹26,000.
• Old regime tax on ₹12,50,000: ₹1,95,000. New is clearly lower.

Estimated refund: ₹60,000 − ₹26,000 = ₹34,000. If payroll did not account for marginal relief during the year, the difference shows up as a refund when you file.

Worked example 3: old regime wins

Deepak has a salary of ₹20,00,000. His deductions are HRA exemption ₹2,40,000, 80C ₹1,50,000, 80D ₹75,000 (₹25,000 for himself and ₹50,000 for senior-citizen parents), 80CCD(1B) ₹50,000 and home-loan interest ₹2,00,000 — a total of ₹7,15,000. TDS was ₹3,00,000 because he submitted only some proofs to his employer.

The old regime is lower by ₹2,080, so his tax is ₹1,90,320. Estimated refund: ₹3,00,000 − ₹1,90,320 = ₹1,09,680. To get this, he must file by the due date and choose the old regime in the return, with proofs for every deduction kept on file.

If Deepak misses the due date and files a belated return, he loses the old regime. His tax becomes the new-regime ₹1,92,400, so his refund falls to ₹1,07,600, and a late fee of ₹5,000 is payable too. Filing on time is worth ₹7,080 to him in this case.

Worked example 4: tax still payable

Farah earns a salary of ₹16,00,000 and FD interest of ₹4,00,000. Her employer deducted ₹1,13,100 on salary under the new regime, and her bank deducted 10% on interest, ₹40,000. Total TDS: ₹1,53,100. She has no deductions.

• New regime taxable income: ₹16,00,000 − ₹75,000 + ₹4,00,000 = ₹19,25,000. Tax: ₹1,92,400.
• Old regime taxable income: ₹19,50,000. Tax: ₹4,13,400.
• Balance: ₹1,92,400 − ₹1,53,100 = ₹39,300 payable.

The estimator shows "Tax still payable" and tells her to pay the balance as self-assessment tax before filing. Because the shortfall is more than ₹10,000, she was also expected to pay advance tax during the year. She can pay through the e-Pay Tax option on the income tax portal, choosing self-assessment tax for the right assessment year, and then enter the challan details in her return. Interest under 234B and 234C can apply, which the interest calculator works out.

Special cases the estimator does not cover fully

Capital gains and crypto

Gains on shares, mutual funds, property and crypto are taxed at special rates — for example, 20% on short-term equity gains, 12.5% on long-term equity gains above ₹1.25 lakh, and 30% on crypto. They are not part of the slab calculation, and the 87A rebate does not apply to them. Do not add them to "other income". Work out that tax separately in the capital gains calculator, add it to the estimator's tax, and include any TDS on those transactions in your TDS figure.

Rent from a let-out house

Enter rent after the 30% standard deduction. If you received ₹3,00,000 rent and paid ₹10,000 municipal tax, the net value is ₹2,90,000, and 70% of that is ₹2,03,000. Home-loan interest on a let-out house is allowed in both regimes against that rent, so reduce it from the rent figure itself rather than putting it in the deductions box, which only the old regime uses.

Employer NPS contribution

Your employer's NPS contribution is deductible in both regimes under section 80CCD(2). The estimator does not have a field for it, so its new-regime tax may be slightly higher than your real tax. If your employer contributes to NPS for you, the refund may be a little more than shown.

Senior citizens with pension and interest

A senior citizen with ₹7,00,000 pension and ₹3,00,000 FD interest, ₹30,000 TDS, and old-regime deductions of ₹1,00,000 (80TTB ₹50,000 and 80D ₹50,000) gets an old-regime tax of ₹83,200 but a new-regime tax of nil, because new-regime taxable income of ₹9,25,000 is within the ₹12 lakh rebate limit. The estimated refund is the full ₹30,000. Many retired people do not realise that the new regime can be the better choice for them.

Non-residents

The 87A rebate is available only to resident individuals, and the higher nil-tax slabs for senior and super senior citizens in the old regime also apply only to residents. The estimator applies them to everyone, so an NRI should ignore the rebate and treat the result as an underestimate of tax. NRIs also often have TDS at higher rates on Indian income, which can lead to larger refunds that are worth claiming.

Salary arrears from earlier years

If you received arrears of salary or pension that relate to earlier years, you may be able to claim relief under section 89, which spreads the tax as if the arrears had been paid in the years they belonged to. The estimator does not compute this relief. You need to file Form 10E on the portal before claiming it in the return.

Business or professional income

The estimator is built for salary, pension and other income. If you have business income, your profit and the rules for choosing a regime are different, so treat the result as a rough guide only.

Why TDS is often more than your real tax

A refund is not a bonus; it is your own money that was collected too early or in excess. Knowing why it happened helps you avoid it next year, or at least predict it.

• Bank TDS on interest. Banks deduct 10% on FD interest above the threshold, without knowing your total income. If your total tax is nil because of the rebate, all of it comes back.
• Old regime at work, new regime at filing. If you told your employer old regime but the new regime turns out cheaper, the employer will have deducted more than needed.
• Proofs not submitted. In the old regime, deductions you did not prove to your employer in time still count when you file.
• Marginal relief not applied. As in example 2, payroll may not apply the 87A marginal relief.
• Arrears or one-time payments. A bonus or arrears paid in one month may push TDS up even if annual tax is lower.

Some reasons work the other way. A job change often leaves too little TDS, because each employer gives you the full standard deduction and lower slabs without knowing about the other. That is why the estimator sometimes shows tax payable, as in example 4.

How to avoid a large refund next year

Getting money back is nice, but it means your money sat with the department for months. A few steps keep TDS closer to your real tax:

• Tell your employer the regime that is actually cheaper for you, and submit proofs on time if you choose the old regime.
• If your total income will be below the taxable limit, you may be eligible to give your bank Form 15G (below 60) or Form 15H (60 or above) so that no TDS is deducted on interest.
• If you have other income such as interest or rent, you can tell your employer about it, so that the right tax is deducted from salary instead of a large balance at year end.
• When you change jobs, give your new employer the salary and TDS details from the old job.

Before you file: check these to get the refund you estimated

1. Match TDS with Form 26AS. Only TDS shown in Form 26AS is credited. If an employer or bank did not report your TDS, ask them to file or correct their TDS return.
2. Check AIS for income you forgot. Savings interest, dividends and small FDs are reported there. Leaving them out can lead to an adjustment and a smaller refund. Our AIS and Form 26AS explainer helps with each entry.
3. Pre-validate your bank account. The refund goes only to a validated account linked to your PAN.
4. Link PAN with Aadhaar. Refunds are not issued while a PAN is inoperative.
5. File by the due date if you want the old regime. A belated return is taxed under the new regime, which may reduce your refund.
6. E-verify the same day. Processing starts only after verification.

Once you have filed, the official income tax e-filing portal shows the processing status. If the refund seems slow, the refund delay checker helps you find out why.

From estimate to bank account: what happens after you file

The estimator tells you how much, not when. The refund itself comes only through your return. After you file and e-verify, the Centralised Processing Centre (CPC) processes the return, compares it with Form 26AS and AIS, and sends an intimation under section 143(1) to your email. That intimation shows the refund CPC has accepted, which may differ from your claim if it found a mismatch.

The accepted refund is then credited directly to your pre-validated bank account. No cheque or separate application is needed. Interest under section 244A is added automatically at 0.5% for each month or part of a month. For a return filed by the due date, interest runs from 1 April of the assessment year to the date the refund is granted; for a belated return, it runs from the date of filing. No interest is paid if the refund is less than 10% of the tax determined.

For example, if Sameer from example 2 files by the due date and his ₹34,000 refund is granted in October of the assessment year, interest is counted for April to October — 7 months. ₹34,000 × 0.5% × 7 = ₹1,190 is added to his refund. That interest is taxable in the year he receives it, so it goes into next year's "other income".

A refund is also not the same as a tax saving. If your estimate shows ₹40,000 coming back, your tax has not gone down by ₹40,000 — you simply paid ₹40,000 too much during the year. Real savings come from choosing the right regime and claiming every valid deduction, which also shrinks the refund next year if you declare them to your employer in time.

Common mistakes with refund estimates

• Entering net salary. Use gross salary from Form 16, not the take-home pay credited to your account.
• Counting the standard deduction yourself. The tool already applies it. Do not include it in deductions.
• Entering monthly figures. Every amount is for the full year.
• Uncapped deductions. The deductions box is not capped by the tool. Enter only allowed amounts.
• Using Form 16 TDS only. Add TDS on interest, rent and other income, plus any advance tax.
• Putting old-regime items in other income. HRA exemption, 80C and similar items go only in the deductions box. Subtracting them from salary yourself would also reduce the new-regime figure, where they are not allowed.
• Forgetting advance tax or self-assessment tax already paid. Any challan you paid for the year counts towards the TDS and advance tax figure. Leaving it out understates your refund.
• Adding capital gains to other income. This taxes them at slab rates and may wrongly remove the 87A rebate from your salary.

If the result looks very different from what you expected, recheck each box against your documents before drawing conclusions. A single wrong digit in salary or TDS changes the answer by a large amount.

For a fuller picture of your tax, including the slab-by-slab breakdown and the rebate in each regime, use the income tax calculator.

Get it checked by an expert

An estimate is a starting point. A TaxCaller expert can check your Form 16, AIS and Form 26AS, pick the regime that gives you the lowest tax, and file and e-verify your return so the refund is processed without avoidable delays. You will be told the fee upfront, and the first call is free. See our income tax filing service for how it works.