Non-salaried income · Tax year 2026-27
Tax calculator for business, freelance & AOP income
If your income is not a salary — you run a business, freelance, practise a profession, or are a member of an association of persons (AOP) — your tax is worked out on this separate table, and it is much higher than the salary table.
Your total taxable income for the year from business, freelance or professional work, or your share as an AOP member.
Annual income ÷ 12. Typing here updates the annual income instead.
Your estimated tax for the year
Rs 90,000
tax for the year on non-salaried income of Rs 12,00,000 in tax year 2026-27 — an average of Rs 7,500 a month
Income after tax: Rs 11,10,000 for the year.
Slab-by-slab breakdown
| Slice of annual income | Amount in slice | Rate | Tax |
|---|---|---|---|
| Rs 0 – Rs 6,00,000 | Rs 6,00,000 | 0% | Rs 0 |
| Rs 6,00,000 – Rs 12,00,000 | Rs 6,00,000 | 15% | Rs 90,000 |
| Rs 12,00,000 – Rs 16,00,000 | Rs 0 | 20% | Rs 0 |
| Total tax for the year | Rs 90,000 |
Salary vs non-salaried: the same income, very different tax
On an income of Rs 12,00,000 a year, a salaried employee pays Rs 6,000 of tax in 2026-27, while a non-salaried individual pays Rs 90,000 — fifteen times as much. The difference is the second slab: 1% for salary, 15% for other income. Never use a salary calculator for freelance or business income, or the other way round.
The non-salaried slabs (both years)
| Annual taxable income | Rate | Tax at the top of the slab |
|---|---|---|
| Rs 0 – Rs 6,00,000 | Nil | Rs 0 |
| Rs 6,00,000 – Rs 12,00,000 | 15% | Rs 90,000 |
| Rs 12,00,000 – Rs 16,00,000 | 20% | Rs 1,70,000 |
| Rs 16,00,000 – Rs 32,00,000 | 30% | Rs 6,50,000 |
| Rs 32,00,000 – Rs 56,00,000 | 40% | Rs 16,10,000 |
| Above Rs 56,00,000 | 45% | Rs 16,10,000 + 45% of the excess |
Finance Act 2026 did not change the non-salaried slabs, so the same table applies in 2025-26 and 2026-27. A surcharge of 10% of the tax (Section 4AB) applies where annual income exceeds Rs 1,00,00,000, in both years.
Assumptions
- The full amount you enter is treated as taxable income. Business expenses and deductible allowances are not modelled — your taxable income is what remains after the deductions the law allows you.
- Withholding taxes already collected from you during the year (for example on bank transactions or imports) are not credited here; they are adjusted when you file your return.
- Companies are taxed at different rates and are not covered by this calculator.
Please note: estimates only — not tax advice. Rates: FBR Withholding Income Tax Rate Card, Finance Act 2026 — last checked 4 November 2026.