Tax payable
Which regime comes out lower
Against the old regime with no claims, the new regime is ₹1,06,600 lower. Against the old regime claiming Section 123 (formerly 80C) and Section 126 (formerly 80D) in full, the new regime is ₹70,200 lower. That is arithmetic on these assumptions, not a recommendation: rent (HRA), home-loan interest and NPS change the old-regime figure, and the income tax calculator takes them all.
The working, line by line
| Line | New regime | Old regime, no claims | Old regime, 80C + 80D |
|---|---|---|---|
| Gross salary | ₹10,00,000 | ₹10,00,000 | ₹10,00,000 |
| Standard deduction | − ₹75,000 | − ₹50,000 | − ₹50,000 |
| Section 123 (formerly 80C) and Section 126 (formerly 80D) | ₹0 | ₹0 | − ₹1,75,000 |
| Taxable income | ₹9,25,000 | ₹9,50,000 | ₹7,75,000 |
| Tax on the slabs | ₹32,500 | ₹1,02,500 | ₹67,500 |
| Section 156 (formerly 87A) rebate | − ₹32,500 | ₹0 | ₹0 |
| Health and education cess | ₹0 | ₹4,100 | ₹2,700 |
| Tax payable | ₹0 | ₹1,06,600 | ₹70,200 |
Standard deduction ₹75,000 under the new regime and ₹50,000 under the old. Tax payable is rounded to the nearest ₹10.
New regime, slab by slab
| Slab | Rate | Income in the slab | Tax |
|---|---|---|---|
| ₹0 to ₹4,00,000 | 0% | ₹4,00,000 | ₹0 |
| ₹4,00,000 to ₹8,00,000 | 5% | ₹4,00,000 | ₹20,000 |
| ₹8,00,000 to ₹12,00,000 | 10% | ₹1,25,000 | ₹12,500 |
What decides the figure here
Taxable income of ₹9,25,000 is within the ₹12,00,000 limit of the Section 156 (formerly 87A) rebate, which cancels the ₹32,500 of slab tax. Cess is charged after the rebate, so nothing is left to pay. The rebate is for residents only, and it does not cover income taxed at special rates, such as most capital gains. Past ₹12,75,000 of salary the full rebate stops, and marginal relief takes over until ₹13,45,589.
If ₹10 lakh is your CTC: monthly in-hand
A cost-to-company figure includes money that never reaches your account. On the salary calculator's starting assumptions, a ₹10 lakh CTC comes to ₹77,922 a month under the new regime and ₹70,165 under the old, the new regime leaving more in hand on these figures.
- Basic pay 40% of CTC, HRA 50% of basic, no rent paid
- Employer and employee PF on the statutory wage ceiling: ₹21,600 a year each
- Gratuity provision of ₹19,231 a year counted inside the CTC
- Professional tax as in Karnataka: ₹2,500 a year
Assumptions
- A resident individual under 60, with salary as the only income.
- The ₹10,00,000is the year's gross salary. The tables above take no HRA exemption, home-loan interest or NPS.
- The old regime's second column claims ₹1,50,000 under Section 123 (formerly 80C) (the whole pool; employee PF counts towards it) and ₹25,000 of health insurance for yourself under Section 126 (formerly 80D).
Rates as per Union Budget 2026 (no change to rates) · Income-tax Act, 2025 · verified 2026-08-13. Figures apply to tax year 2026-27. The Income-tax Act, 2025 replaced the 1961 Act on 1 April 2026 and renumbers sections; rates are unchanged. This tool is an estimate, not tax advice.