Income Tax on ₹10 Lakh Salary: New vs Old Regime Calculation
By Pradipta Ray · Published
On a ₹10,00,000 salary, tax liability varies dramatically depending on whether you choose the New Tax Regime or the Old Tax Regime with deductions. Here is the complete breakdown.
At a ₹10,00,000 CTC, you cross into higher tax brackets. The New Tax Regime offers lower slab rates and a ₹75,000 standard deduction without requiring any investment proofs, while the Old Tax Regime rewards heavy itemized deductions.
Direct Answer: On a ₹10 Lakh salary, you pay ₹44,200 in tax under the New Regime. Under the Old Regime without deductions, you pay ₹1,11,800. The New Regime saves you ₹67,600 automatically unless you claim over ₹2.6 Lakh in exemptions.
Detailed Comparison: ₹10 Lakh Salary (AY 2026-27)
| Step | New Regime (Sec 115BAC) | Old Regime (Zero Deductions) | Old Regime (₹2.5L Deductions) |
|---|---|---|---|
| Gross Salary | ₹10,00,000 | ₹10,00,000 | ₹10,00,000 |
| Standard Deduction | -₹75,000 | -₹50,000 | -₹50,000 |
| Section 80C (PPF, EPF, ELSS) | ₹0 | ₹0 | -₹1,50,000 |
| Section 80D (Health Insurance) | ₹0 | ₹0 | -₹25,000 |
| HRA / Home Loan Interest | ₹0 | ₹0 | -₹75,000 |
| Net Taxable Income | ₹9,25,000 | ₹9,50,000 | ₹7,00,000 |
| Base Tax | ₹42,500 | ₹1,07,500 | ₹52,500 |
| 4% Cess | ₹1,700 | ₹4,300 | ₹2,100 |
| Total Tax Outflow | ₹44,200 | ₹1,11,800 | ₹54,600 |
The ₹2.60 Lakh Breakeven Point
For a ₹10 Lakh salary, the mathematical breakeven threshold is approximately ₹2,60,000 in deductions. If your total claims (80C + 80D + HRA) are less than ₹2.6 Lakh, choose the New Regime. If you pay significant house rent in a metro city and max out Section 80C, the Old Regime may still save you a few thousand rupees.
Payroll Tips for ₹10 Lakh Earners
Declare your tax regime choice to your employer's HR in April to avoid excess monthly TDS deductions.
Remember that you can switch regimes when filing your final ITR even if you selected differently with your employer.
Ensure your NPS employer contribution under Section 80CCD(2) is claimed, as it remains tax-deductible under both regimes.
Frequently asked questions
How much tax do I pay on a ₹10 Lakh salary under the New Regime?
Which regime is better for a ₹10 Lakh salary?
What is the monthly in-hand salary for ₹10 Lakh CTC?
Calculators for this
Related reading
Comprehensive comparison between Old and New Tax Regimes for AY 2026-27. Understand breakeven deduction thresholds across income levels and choose correctly.
Calculate tax on a ₹15 Lakh salary under New and Old Tax Regimes for AY 2026-27. Learn the exact breakeven deduction threshold and monthly take-home.
Master the 3-step HRA tax exemption formula under Section 10(13A) and Rule 2A. Learn metro vs non-metro rules and calculate your tax-free allowance.
Authoritative Sources
- Income Tax Department Section 115BAC Slabs· verified 1 August 2026
- CBDT Circular on Tax Deductions for Salaried Employees· verified 1 August 2026