Income Tax on ₹10 Lakh Salary in FY 2026-27
New regime: ₹0 tax — the Section 156 (old 87A) rebate wipes out the full ₹32,500. Old regime with 80C: ₹75,400. Full working below.
rebate u/s 156 applies • zero monthly TDS • resident individual under 60
Step-by-step calculation (new regime)
| Step | Amount |
|---|---|
| Gross salary | ₹10,00,000 |
| − Standard deduction (salaried) | ₹75,000 |
| Taxable income | ₹9,25,000 |
| ₹0–4L @ nil | ₹0 |
| ₹4–8L @ 5% | ₹20,000 |
| ₹8–9.25L @ 10% | ₹12,500 |
| Tax before rebate | ₹32,500 |
| − Rebate u/s 156 (income ≤ ₹12L) | ₹32,500 |
| Total tax | ₹0 |
Monthly TDS and in-hand salary
| Component (monthly) | Amount |
|---|---|
| Gross salary (₹10L ÷ 12) | ₹83,333 |
| − TDS (tax is zero) | ₹0 |
| − Employee PF (approx, varies by basic) | ≈ ₹5,000 |
| − Professional tax (most states) | ₹200 |
| In-hand salary (approx) | ≈ ₹78,000 |
New vs old regime — which wins at ₹10L?
| Regime | Taxable income | Total tax |
|---|---|---|
| New (₹75k std ded, no 80C needed) | ₹9,25,000 | ₹0 |
| Old (₹50k std ded + ₹1.5L 80C) | ₹8,00,000 | ₹75,400 |
Tax on other salaries
Same method, different numbers: ₹12 lakh salary → ₹0 · ₹15 lakh → ₹97,500 · ₹20 lakh → ₹1,92,400 · ₹50 lakh → ₹10,99,800. Or calculate your exact salary →
By TaxSetu Editorial Team · Last reviewed: 7 October 2026
Based on the Income-tax Act 2025, Income Tax Rules 2026 and CBDT notifications; sections per the Income-tax Act 1961 (as amended) with 2025-Act mappings where notified · Verify on the official portal: incometax.gov.in
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Frequently Asked Questions
Yes, in the new regime. After the ₹75,000 standard deduction, taxable income is ₹9,25,000 — within the ₹12 lakh rebate line — so the Section 156 (old 87A) rebate wipes out the full ₹32,500 tax.
Approximately ₹78,000 per month: ₹83,333 gross minus ~₹5,000 PF and ₹200 professional tax, with zero TDS since the tax is nil. Exact PF varies with your basic pay.
The new regime — it gives zero tax with no investments at all. The old regime costs about ₹75,400 even after ₹1.5 lakh of 80C investments.
Yes, if your gross income exceeds the basic exemption (₹4L new / ₹2.5L old regime). Filing is also needed for refunds, visa paperwork and loan applications.