How Much Income Tax on ₹10 Lakh Salary in FY 2026-27?
Exact tax calculation on ₹10 lakh gross salary under both Old and New Tax Regimes for FY 2026-27. See slab-wise breakdowns, in-hand salary estimates, and legal ways to reduce your tax.
Bhanu Pratap Singh DeoJune 26, 20267 min read
Key Takeaways
Under the New Regime with ₹75K standard deduction, a ₹10L salary earner's net taxable is ₹9.25L — tax after 87A rebate is approximately ₹7,800.
Under the Old Regime without deductions, tax at ₹10L is approximately ₹1,06,600.
The 87A rebate (up to ₹25,000) applies at ₹9.25L net taxable under New Regime.
Tax-saving instruments like ELSS, NPS, and home loan interest can dramatically reduce Old Regime tax.
Your in-hand monthly salary at ₹10L CTC is approximately ₹77,000–₹78,000 after tax and EPF.
A gross salary of ₹10 lakh per annum is a significant milestone for many Indian professionals — placing them in the top 10% of income earners. But how much of that ₹10 lakh actually stays in your pocket? The answer varies significantly between the Old and New Tax Regimes, and also depends on how aggressively you invest in tax-saving instruments. This guide breaks it all down with exact calculations.
Tax Calculation Under the New Tax Regime
Step
Calculation
Amount
Gross Salary
—
₹10,00,000
Standard Deduction
New Regime
₹75,000
Net Taxable Income
₹10L − ₹75K
₹9,25,000
Tax at New Regime Slabs
—
₹32,500
Less: 87A Rebate (income ≤ ₹12L)
—
₹25,000
Tax after Rebate
—
₹7,500
Add: 4% Cess on ₹7,500
—
₹300
Total Tax Payable
—
₹7,800
Under the New Regime for FY 2026-27, the effective tax on ₹10L salary is only ₹7,800 — because the 87A rebate (₹25,000) wipes out most of the ₹32,500 liability.
Tax Under the Old Regime
Scenario
Taxable Income
Tax
With Cess
No deductions (std. ₹50K)
₹9,50,000
₹1,02,500
₹1,06,600
80C ₹1.5L + 80D ₹25K
₹7,75,000
₹70,000
₹72,800
Full stack (80C+80D+NPS+HRA)
₹5,75,000
₹25,000
₹26,000
New vs Old: Side-by-Side at ₹10L
Scenario
Annual Tax
Monthly TDS
New Regime (default)
₹7,800
₹650
Old Regime (no deductions)
₹1,06,600
₹8,883
Old Regime (max deductions)
₹26,000
₹2,167
Monthly In-Hand Salary at ₹10 Lakh CTC
Component
Monthly
Annual
Gross Salary
₹83,333
₹10,00,000
Less: Employee EPF (12% of ₹4L basic)
₹4,000
₹48,000
Less: Professional Tax
₹200
₹2,400
Less: TDS (New Regime)
₹650
₹7,800
Monthly In-Hand (approx.)
₹78,483
₹9,41,800
How to Reduce Your Tax Further
Ask your employer about NPS Tier-1 contributions under 80CCD(2) — employer contributions up to 10% of salary are deductible in BOTH regimes.
If you have a home loan, the Old Regime allows you to deduct up to ₹2 lakh of home loan interest annually under Section 24(b).
HRA exemption under Section 10(13A) can save significant tax if you live in a rented home in a metro city.
Use ELSS mutual funds for Section 80C investments — they offer both tax savings and market-linked returns with just a 3-year lock-in.
Ensure you claim LTA (Leave Travel Allowance) twice every 4 years — this is a cash-in-hand exemption with minimal paperwork.
B
Bhanu Pratap Singh Deo
Co-founder of FinBuddy and B.Tech. student at Birla Institute of Technology, Mesra. Writes about income tax, salary structuring, and tax-saving strategy.
Frequently Asked Questions
Yes. Under the New Regime (FY 2026-27), the tax on ₹10L salary (net taxable ₹9.25L after ₹75K standard deduction) works out to approximately ₹7,800 including 4% cess — thanks to the ₹25,000 87A rebate reducing the initial ₹32,500 tax liability.
