Income Tax on Salary: FY 2025-26

Standard deduction

Rs 75,000 subtracted from gross salary under both regimes.

New regime slabs

0% up to Rs 4L, 5% (4-8L), 10% (8-12L), 15% (12-16L), 20% (16-20L), 25% (20-24L), 30% above Rs 24L.

Section 87A rebate

New regime: full rebate if taxable income is at or below Rs 12,00,000 (covers up to Rs 60,000 tax).

4% health and education cess

Applied on net tax after surcharge and before rebate. Zero if tax is zero.

In-hand assumption

50% basic pay. Employee PF at 12% of basic. Professional tax Rs 200/month. No other deductions.

Surcharge

10% on tax when taxable income exceeds Rs 50 lakh. Applies only to 60L, 75L, and 100L entries on this page.

What is the zero-tax salary limit in FY 2025-26?

The zero-tax gross salary limit under the new regime in FY 2025-26 is Rs 12,75,000. After the standard deduction of Rs 75,000, taxable income is exactly Rs 12,00,000, which equals the Section 87A rebate ceiling. Any gross salary above Rs 12,75,000 produces a non-zero tax liability under the new regime.

Is income tax zero for a 10 lakh salary?

Yes. For a Rs 10 lakh salary under the new regime, taxable income after the standard deduction is Rs 9,25,000. Tax at slab rates is Rs 32,500, fully covered by the Section 87A rebate. Monthly in-hand is approximately Rs 78,133.

Which is better — old or new tax regime in FY 2025-26?

The new regime is better at every salary level shown on this page. Under the old regime, you would need Chapter VI-A deductions above Rs 3.75 lakh (80C + NPS + 80D + HRA combined) to match or beat the new regime at salaries above Rs 15 lakh. For most salaried employees, the new regime wins.

At what salary does surcharge apply?

Surcharge applies when taxable income (gross minus standard deduction) exceeds Rs 50 lakh. For gross salary, that means approximately Rs 50,75,000 CTC. On this page, only the 60L, 75L, and 100L entries include surcharge (at 10%).