Income Tax on ₹10 Lakh Salary in India (FY 2025-26 / AY 2026-27)
Estimated tax calculation under new and old regime. Monthly take-home. Based on AY 2026-27 public guidance and shown assumptions; verify before filing.
✓ AY 2026-27 source checked✓ Assumptions shown✓ Marginal relief applied
Updated May 29, 2026 · Source: Income Tax Department AY 2026-27 guidance · public source links shown below
🎉 Great news — you pay ZERO income tax on ₹10 Lakh salary!
Under the new tax regime, salaried employees earning up to ₹12.75 lakh pay zero income tax. ₹75,000 standard deduction + ₹60,000 Section 87A rebate = complete tax relief. No investment required.
📊 SOURCE-CHECKED ESTIMATE — Tax on ₹10 Lakh Salary
Annual Tax
₹0
New regime
Monthly Tax
₹0
Per month
Monthly Take-Home
₹83,333
After tax only
Step-by-Step Calculation (New Regime)
Gross annual salary
₹10,00,000
Less: Standard deduction (salaried)
− ₹75,000
Taxable income
₹9,25,000
Tax on slabs (Income Tax Department guidance, Income Tax Department slab guidance)
₹32,500
Less: Section 87A rebate
− ₹32,500
Total income tax payable
₹0
Effective tax rate: 0.00% of gross salary · Source: Income Tax Department guidance (Income Tax Department slab guidance) · official Income Tax Department guidance
New Regime vs Old Regime — ₹10 Lakh Salary
The right regime depends on your deductions. Here's the comparison assuming typical ₹80C (₹1.5L) + ₹80D (₹25K) deductions in old regime:
🆕 New Regime
₹0
Taxable: ₹9,25,000 · Std ded: ₹75,000
✓ Better — saves ₹75,400/year
📋 Old Regime
₹75,400
With ₹80C ₹1.5L + ₹80D ₹25K deductions
💡 Rule of thumb for ₹10 Lakh salary: New regime wins unless you have HRA exemption above ₹1.5 lakh or home loan interest deduction. Use our calculator for your exact number.
Approximate monthly figures (new regime, before PF and other deductions):
Component
Monthly
Annual
Gross salary (CTC)
₹83,333
₹10,00,000
Income tax (new regime)
₹0
₹0
In-hand (after tax only)
₹83,333
₹10,00,000
Note: Actual in-hand salary will be lower after PF (12% of basic), professional tax (state-specific, typically ₹200/month), and other deductions. CTC and gross salary may differ. Verify with your payslip.
📋 Before filing your FY 2025-26 ITRVerify Form 16, AIS/TIS, deductions, regime selection, and latest official due-date notifications before filing.
At ₹10 lakh, the new regime can still be highly efficient for eligible salaried taxpayers because the taxable income after standard deduction stays within the rebate-supported range. The old regime may matter only when HRA, home-loan interest, 80C, 80D, NPS, and other deductions together become meaningfully higher than the simple standard deductions.
Best use: compare your actual HRA and rent proof before choosing old regime.
Common mistake: counting CTC components such as employer PF as cash salary.
Before filing: verify that variable pay, bonus, and interest income do not move the final taxable income outside the expected range.
Real-world checks before using this ₹10 Lakh estimate
This page assumes a clean salary-only case. Your actual tax and in-hand salary can change when your employer splits CTC into basic pay, HRA, special allowance, employer PF, gratuity, bonus, variable pay, reimbursements, insurance deductions, professional tax, or one-time joining/retention payouts.
Metro renter: compare old regime only after checking actual rent paid, HRA received, basic salary, city type, and rent proof availability.
Bonus or variable pay: include it in annual income before deciding that a rebate or slab outcome applies.
Payroll reality: monthly take-home is normally lower than “after-tax only” because payroll deductions and benefits are separate from income tax.
Frequently Asked Questions
Under the new tax regime: gross ₹10,00,000 minus standard deduction ₹75,000 = taxable ₹9,25,000. Total income tax = ₹0 including 4% cess. Effective rate = 0.00%. Zero tax due to Section 87A rebate.
Monthly gross: ₹83,333. Monthly income tax (new regime): ₹0. Estimated monthly take-home (after tax only): ₹83,333. Your actual take-home will be lower after PF contributions (12% of basic), professional tax (~₹200/month), and other deductions from your employer.
New regime is better for most people on ₹10 Lakh salary — it saves ₹75,400 compared to old regime with standard ₹80C + ₹80D deductions. Use our income tax calculator to compare with your exact deductions.
₹75,000 under the new tax regime (applicable automatically — no proof needed). ₹50,000 under the old tax regime. The standard deduction was increased from ₹50,000 to ₹75,000 in Budget 2025 and continues unchanged for FY 2025-26 / AY 2026-27 under the Income Tax Department guidance.
Yes — taxable income after standard deduction is ₹9,25,000 which is ≤ ₹12L, so full Section 87A rebate of ₹32,500 applies. Total tax = ZERO.
Maintained by the RupeeCalc editorial workflow. Last checked: 29 May 2026. This page gives informational estimates only; verify official sources, your own documents, and a qualified professional before filing taxes, taking loans, investing, invoicing, or making compliance decisions.
At ₹10 lakh, old regime can become competitive only when deductions are meaningful and document-backed. HRA without rent proof, insurance premiums that do not qualify, or planned investments that were never made can make old-regime comparisons misleading. Treat the calculator as a planning view and cross-check with payroll proof submission windows.
Run the calculator once with CTC and once with Form 16 taxable salary if available.
Compare new regime against only those old-regime deductions that are real and document-backed.
Use the estimate for planning, then verify official guidance and filing data before submission.