The new regime gives you zero tax at ₹10 lakh. The old regime without deductions costs ₹1,06,600. Here's the full breakdown with exact numbers.
At a gross salary of ₹10 lakh, your tax depends heavily on which regime you pick. Under the new regime, the Section 87A rebate (available up to ₹12 lakh taxable income) reduces your tax to ₹0. Under the old regime without any deductions, you pay roughly ₹1,06,600 including cess. The gap is significant — and the new regime clearly wins here.
Under the new regime, the standard deduction is ₹75,000. No other deductions are available, but the 87A rebate is very generous.
| Step | Amount |
|---|---|
| Gross Salary | ₹10,00,000 |
| Standard Deduction | − ₹75,000 |
| Taxable Income | ₹9,25,000 |
| Tax on ₹0–₹4,00,000 (0%) | ₹0 |
| Tax on ₹4,00,001–₹8,00,000 (5%) | ₹20,000 |
| Tax on ₹8,00,001–₹9,25,000 (10%) | ₹12,500 |
| Total Tax Before Rebate | ₹32,500 |
| Section 87A Rebate (taxable income ≤ ₹12L) | − ₹32,500 |
| Final Tax Payable | ₹0 |
| Total Tax + Cess | ₹0 |
Old regime slabs haven't changed. Standard deduction is ₹50,000 here. This calculation assumes no 80C/80D investments:
| Step | Amount |
|---|---|
| Gross Salary | ₹10,00,000 |
| Standard Deduction | − ₹50,000 |
| Taxable Income (no investments) | ₹9,50,000 |
| Tax on ₹0–₹2,50,000 (0%) | ₹0 |
| Tax on ₹2,50,001–₹5,00,000 (5%) | ₹12,500 |
| Tax on ₹5,00,001–₹9,50,000 (20%) | ₹90,000 |
| Total Tax | ₹1,02,500 |
| Surcharge | ₹0 |
| Cess (4%) | ₹4,100 |
| Total Tax + Cess | ₹1,06,600 |
With ₹1.5 lakh 80C investment (like ELSS/PPF): taxable income drops to ₹8 lakh, tax becomes ~₹72,500 + cess = ~₹75,400.
| Scenario | Tax Payable |
|---|---|
| New Regime (standard deduction only) | ₹0 |
| Old Regime — no investments | ₹1,06,600 |
| Old Regime — with 80C ₹1.5L | ₹75,400 |
| Old Regime — with 80C + 80D + HRA | ₹20,000–₹40,000 (varies) |
New regime wins clearly. You pay zero tax without investing a single rupee. The old regime would require massive deductions — 80C + 80D + HRA + home loan — to get close to the same outcome. Most salaried people at ₹10L are better off with the new regime.
The 87A rebate applies only if your taxable income stays at or below ₹12 lakh. If you receive a bonus, rental income, or freelance payment that pushes taxable income above ₹12L, you lose the entire rebate and suddenly owe ~₹80,000+. Use our tax calculator to check your total income before assuming ₹0 tax.
If you're in the new regime and earning close to ₹10L with bonuses, consider timing your variable pay carefully. Keeping taxable income under ₹12L means paying zero tax — crossing it even by ₹1 triggers a large tax bill. Your employer's finance team can help with this.
Add your HRA, bonus, and deductions to see exactly what you owe — and whether to switch regimes.
Open Tax Calculator →See how your tax changes if your income shifts — or plan ahead for your next raise: