Income Tax on 10 Lakh Salary — Old vs New Regime Comparison — India 2026
Calculate income tax on Rs 10 lakh salary under old and new tax regimes for FY 2025-26. Find which regime saves you more at this income level.
Rs 10 lakh is a critical income level in India because it sits at the threshold where the new regime becomes attractive. Under the new regime with Rs 75000 standard deduction taxable income is Rs 9.25 lakh which falls under the rebate threshold of Rs 12 lakh — meaning zero tax. Under the old regime without sufficient deductions you could pay Rs 50000-80000 in tax. This makes regime choice crucial at this salary level.
Is 10 lakh salary tax-free under new regime?
Yes Under the new regime Rs 10 lakh salary is effectively tax-free. With Rs 75000 standard deduction your taxable income becomes Rs 9.25 lakh which is below the Rs 12 lakh rebate threshold under Section 87A. This means zero tax liability. This is one of the biggest advantages of the new regime for employees earning up to Rs 12 lakh.
Calculate Now
Income Tax Calculator (India FY 2025-26)
How Tax Calculation Works
Income tax is calculated on your total taxable income after deducting eligible exemptions and deductions from your gross income. The tax is applied progressively — you pay a lower rate on initial income slabs and higher rates only on income that exceeds each threshold. This means moving into a "higher tax bracket" does not mean your entire income is taxed at the higher rate. Understanding marginal vs effective tax rate is crucial: your marginal rate applies only to the last rupee earned, while your effective rate is the average across all slabs.
Tax-Saving Strategies
Under the old regime, maximize deductions: Section 80C allows up to Rs 1.5 lakh through PPF, ELSS, EPF, and life insurance. Section 80D covers health insurance premiums up to Rs 25,000 (Rs 50,000 for senior citizens). Section 80CCD(1B) offers an additional Rs 50,000 deduction for NPS contributions. Home loan interest up to Rs 2 lakh is deductible under Section 24. Under the new regime, the Rs 75,000 standard deduction and lower slab rates may save you more if your total deductions are below Rs 3.75 lakh. Calculate under both regimes before choosing.
Key Information
| Parameter | Details |
|---|---|
| New Regime Tax (10 LPA) | Rs 0 (under rebate threshold) |
| Old Regime Tax (no deductions) | Approximately Rs 75400 |
| Old Regime Tax (with 80C) | Approximately Rs 44200 |
| Break-Even Deductions | Rs 2.5 lakh approximate |
Calculate tax on 10 lakh salary
Get accurate results instantly — 100% free, no signup required
Use Calculator NowFrequently Asked Questions
Is 10 lakh salary tax-free under new regime?
Yes Under the new regime Rs 10 lakh salary is effectively tax-free. With Rs 75000 standard deduction your taxable income becomes Rs 9.25 lakh which is below the Rs 12 lakh rebate threshold under Section 87A. This means zero tax liability. This is one of the biggest advantages of the new regime for employees earning up to Rs 12 lakh.
Should I choose old or new regime for 10 lakh salary?
At Rs 10 lakh the new regime wins for most people because you pay zero tax. To beat zero tax under the old regime is mathematically impossible. The only exception is if you have a home loan with interest deduction under Section 24 of Rs 2 lakh or more which combined with 80C could bring old regime tax very close to zero. But zero beats near-zero every time.
What is the take-home on 10 LPA?
Under new regime with zero tax: monthly take-home is approximately Rs 73000-78000 after EPF professional tax and other deductions from CTC. Under old regime without adequate deductions: take-home drops to Rs 67000-72000 due to tax deduction. The Rs 5000-6000 monthly difference is significant over a year adding up to Rs 60000-75000.
Which tax regime should I choose — old or new?
Choose the new regime if your total deductions are below Rs 3.75 lakh. Choose the old regime if you claim HRA, 80C (Rs 1.5L), 80D, home loan interest, and NPS totaling more than Rs 3.75 lakh. Salaried employees can switch every year.
Is income up to Rs 12 lakh really tax-free?
Under the new regime for FY 2025-26, income up to Rs 12 lakh is effectively tax-free due to Section 87A rebate. After Rs 75,000 standard deduction, taxable income is Rs 11.25 lakh which qualifies for full rebate. However, income even slightly above Rs 12 lakh loses this entire benefit.
How can I save more tax legally?
Under the old regime, maximize 80C (Rs 1.5L via PPF, ELSS, EPF), 80D (Rs 25K-50K for health insurance), 80CCD(1B) (Rs 50K for NPS), HRA exemption, and home loan interest (Rs 2L under Section 24).
Related Calculators
More Tax Calculators
Last updated: March 2026