₹10 lakh is the last comfortable rung before the rebate cliff — zero tax, with ₹2.75 lakh of headroom before that changes.
Corrected 29 August 2026. An earlier version of this page excluded target variable pay from both received cash and taxable salary, which understated income tax. Figures are recalculated under model PS-A3. What changed →
Short answer: on a ₹10 Lakh gross salary you pay zero income tax under the new regime. The ₹75,000 standard deduction brings taxable income to ₹9.25 L, inside the ₹12 lakh Section 156(2)(a) rebate — so the whole liability is wiped out.
New tax regime, Tax Year 2026-27 and FY 2026-27 · Rates and slabs are indicative, as of August 2026
Taxable income is ₹9.25 L, under the ₹12 lakh rebate threshold, so your tax is nil. Your monthly TDS should be zero — if your employer is deducting, check your declaration.
You can absorb a raise of up to ₹2.75 lakh and still pay nothing. Past that the rebate disappears, and there is a stretch between roughly ₹12.76 lakh and ₹13.48 lakh gross where a raise leaves you with less money than before it.
Old regime break-even here is about ₹4.50 L of deductions. Since you cannot beat zero, the old regime is simply not a live option at this salary.
Here is the thing most people at ₹10 lakh get wrong. Because 80C gives you nothing, the products people normally buy at this income — tax-saver FDs, LIC endowment policies, ELSS — should be evaluated purely on merit, and most of them lose that comparison badly.
A five-year tax-saving FD pays about the same as a regular FD and locks your money for five years. Its only advantage was the deduction. An endowment policy typically returns 4–6% while bundling in insurance you could buy separately for a fraction of the cost.
Buy term insurance for protection, and invest the rest wherever the returns are best. Those are two different jobs and products that claim to do both usually do neither well.
| Step | Amount |
|---|---|
| Gross salary | ₹10,00,000 |
| Standard deduction (s.19(1) Table Sl. No. 2) | −₹75,000 |
| Taxable income | ₹9,25,000 |
| Slab tax (s.202) | ₹32,500 |
| Rebate (s.156(2)(a)) | −₹32,500 |
| Health and education cess (4%) | ₹0 |
| Total income tax | ₹0 |
| Gross salary after income tax | ₹10,00,000 |
This page starts from gross salary, not CTC. It shows income tax only — provident fund, professional tax and other payroll deductions are separate and excluded.
| Gross salary | Income tax | Effective rate | After income tax |
|---|---|---|---|
| ₹5 Lakh | ₹0 | 0.0% | ₹5.00 L |
| ₹7 Lakh | ₹0 | 0.0% | ₹7.00 L |
| ₹10 Lakh | ₹0 | 0.0% | ₹10.00 L |
| ₹12 Lakh | ₹0 | 0.0% | ₹12.00 L |
| ₹15 Lakh | ₹97,500 | 6.5% | ₹14.03 L |
| ₹20 Lakh | ₹1.92 L | 9.6% | ₹18.08 L |
| ₹25 Lakh | ₹3.20 L | 12.8% | ₹21.80 L |
| ₹30 Lakh | ₹4.76 L | 15.9% | ₹25.24 L |
| ₹50 Lakh | ₹11.00 L | 22.0% | ₹39.00 L |
| ₹1 Crore | ₹29.26 L | 29.3% | ₹70.74 L |
New regime, Tax Year 2026-27 and FY 2026-27. Includes the ₹75,000 standard deduction, Section 156(2)(a) rebate, marginal relief, surcharge and 4% cess. Excludes professional tax and employee PF, which are deducted separately.
On a gross salary of ₹10 Lakh, income tax under the new regime for Tax Year 2026-27 and FY 2026-27 is zero, because taxable income after the ₹75,000 standard deduction is ₹9.25 L, within the Section 156(2)(a) rebate limit.
The new regime, without question. Your tax is already zero, and no combination of deductions can beat zero.
After income tax of ₹0, roughly ₹10.00 L of your gross salary remains. Note this is gross salary, not CTC — employer PF, the gratuity provision and A target variable component may be paid separately. Any amount actually paid is salary cash and is taxable in that year., and employee PF and professional tax are deducted separately.
Yes. The ₹75,000 standard deduction is available under the new regime for salaried taxpayers and pensioners, and is applied automatically by your employer. You do not claim it.
Related: Income Tax Calculator · Salary Calculator · Old vs New Regime · Section 80C Guide · All salary levels
A note on section numbers. The Income-tax Act, 2025 replaced the Income-tax Act, 1961 with effect from 1 April 2026. Section numbers on this page are those of the 2025 Act. Where you know a provision by its old number, the mapping is: 115BAC → 202, 87A → 156, 16(ia) → 19, 80CCD(2) → 124, 112A → 198, 10(10) → 19(1) Table Sl. Nos. 3-6.
The official pages this page is checked against. If one of them disagrees with us, it wins.
Written and checked by the PaisaSamajh editorial desk · Last reviewed: 24 August 2026 · How we check this →