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Good news: If your total income is ₹5 lakh or below, you pay ZERO tax under both old and new regimes thanks to the rebate under Section 87A.
Income up to ₹7 lakh is effectively tax-free due to rebate. So at ₹5 lakh, your tax = ₹0.
With standard deduction of ₹50,000, taxable income = ₹4.5 lakh. With 87A rebate, tax = ₹0.
If you earn slightly more than ₹5 lakh, invest in 80C (ELSS, PPF) to bring taxable income below ₹5 lakh and pay zero tax.
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All calculations use standard financial formulas. SIP returns use compound interest formula: FV = PMT × [((1+r)^n - 1) / r]. EMI uses: EMI = P × r × (1+r)^n / [(1+r)^n - 1]. Tax calculations follow Income Tax Act provisions for the current assessment year. Insurance premiums are indicative market averages.
Sources: RBI, SEBI, Income Tax Department of India, CIBIL, IRDA, LIC of India. Data verified as of Aug 2026.
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Disclaimer: This website provides general educational information only and does not provide personalized investment advice or recommendations. Financial decisions should be made after considering individual circumstances and consulting a qualified professional where appropriate. Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. Past performance does not guarantee future results.