At ₹30 lakh you are firmly in the 30% band, and the old regime is mathematically unreachable for almost anyone.
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 ₹30 Lakh gross salary you pay ₹4.76 L in income tax under the new regime for Tax Year 2026-27 and FY 2026-27 — an effective 15.9% of gross, or about ₹39,650 deducted as TDS each month.
New tax regime, Tax Year 2026-27 and FY 2026-27 · Rates and slabs are indicative, as of August 2026
New regime tax is ₹4.76 L, 15.9% of gross. Old regime break-even requires about ₹8.00 L of deductions.
Note that this break-even has stopped rising. It plateaus at around ₹8 lakh because above a certain income both regimes tax the top slice at 30%, and the deduction ceilings are fixed. More income does not make the old regime more attractive; it makes it less so, because the fixed ₹2.5 lakh of available deductions shrinks as a proportion of your income.
Unless you are servicing a very large home loan on a let-out property, where interest deduction is not capped at ₹2 lakh, there is no realistic path to the old regime winning here.
With deductions closed, three things still move the needle at this income, in order of size:
Employer NPS under 80CCD(2) — up to 14% of basic, deductible under the new regime. On ₹12 lakh basic that is ₹1.68 lakh out of taxable income, saving roughly ₹52,000 in tax.
Timing of variable pay. A bonus paid in April rather than March moves the tax into the next financial year. It does not reduce the tax, but it defers it by twelve months, which is worth something.
Harvesting capital gains. The ₹1.25 lakh annual LTCG exemption expires unused every year you do not use it. Selling and rebuying up to that amount of gain resets your cost base at no tax cost.
| Step | Amount |
|---|---|
| Gross salary | ₹30,00,000 |
| Standard deduction (s.19(1) Table Sl. No. 2) | −₹75,000 |
| Taxable income | ₹29,25,000 |
| Slab tax (s.202) | ₹4,57,500 |
| Health and education cess (4%) | ₹18,300 |
| Total income tax | ₹4,75,800 |
| Gross salary after income tax | ₹25,24,200 |
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 ₹30 Lakh, income tax under the new regime for Tax Year 2026-27 and FY 2026-27 is approximately ₹4.76 L including 4% cess. Taxable income after the ₹75,000 standard deduction is ₹29.25 L.
The new regime, unless your total deductions exceed roughly ₹8.00 L a year. Below that threshold the new regime pays less tax. The Income Tax Department publishes an official comparison calculator.
After income tax of ₹4.76 L, roughly ₹25.24 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 →