How much income tax do I pay on a salary of 10 lakh rupees?

Under the New Tax Regime for AY 2026-27, a gross salary of Rs 10 lakh is effectively zero tax. After the Rs 75,000 standard deduction, taxable income is Rs 9.25 lakhs, which falls below the Rs 12.75 lakh effective tax-free threshold under the 87A rebate. Under the Old Regime without deductions, tax is approximately Rs 1,02,500 plus 4 percent cess. With full 80C of Rs 1.5 lakh and 80D of Rs 25,000, old regime tax falls to approximately Rs 52,500 plus cess.

Is income up to 12 lakh tax free under the New Regime?

From FY 2025-26 (Budget 2025), income up to Rs 12 lakhs is effectively zero tax under the New Regime due to enhanced rebate u/s 87A of Rs 60,000. For salaried individuals, the standard deduction of Rs 75,000 additionally applies, making effective zero tax income Rs 12.75 lakhs. Note that STCG and LTCG income does not benefit from the 87A rebate.

Which tax regime is better — New or Old — for AY 2026-27?

The New Tax Regime is better if total deductions are less than approximately Rs 3.75 lakhs. The Old Regime wins if you have significant HRA exemption, full 80C of Rs 1.5L, home loan interest u/s 24(b) up to Rs 2L, and NPS 80CCD(1B) of Rs 50,000. Use the income tax calculator to compare with your exact numbers.

What are the New Tax Regime slab rates for AY 2026-27?

New Tax Regime slabs for AY 2026-27: Income up to Rs 4 lakh — 0 percent; Rs 4L to Rs 8L — 5 percent; Rs 8L to Rs 12L — 10 percent; Rs 12L to Rs 16L — 15 percent; Rs 16L to Rs 20L — 20 percent; Rs 20L to Rs 24L — 25 percent; above Rs 24L — 30 percent. Standard deduction of Rs 75,000 applies. Effective zero tax up to Rs 12.75 lakh for salaried individuals.

What is the capital gains tax rate in India after Budget 2024?

After Budget 2024, effective 23 July 2024: Short term capital gains on equity STCG u/s 111A are taxed at 20 percent flat. Long term capital gains on equity LTCG u/s 112A are taxed at 12.5 percent on gains above Rs 1.25 lakhs per year which is exempt. Debt mutual funds purchased after 1 April 2023 are taxed as per income slab.

What is the last date for filing income tax return?

For salaried individuals and those not requiring audit, the last date for filing ITR is 31 July every year. For businesses requiring audit under Section 44AB, the deadline is 31 October. Missing the deadline attracts late filing fee u/s 234F — Rs 1,000 if income up to Rs 5 lakh, Rs 5,000 if income above Rs 5 lakh.

How is HRA exemption calculated for income tax?

HRA exemption u/s 10(13A) is the minimum of three amounts: actual HRA received from employer; actual rent paid minus 10 percent of basic salary; and 50 percent of basic salary for metro cities (Delhi, Mumbai, Kolkata, Chennai) or 40 percent for non-metro cities. HRA exemption is available only under the Old Tax Regime.

How to reduce income tax legally in India?

Legal ways to reduce income tax: Invest Rs 1.5 lakh in Section 80C instruments (EPF, PPF, ELSS, LIC) to save up to Rs 46,800; invest Rs 50,000 in NPS u/s 80CCD(1B) to save Rs 15,600; buy health insurance for Rs 25,000 to Rs 75,000 deduction u/s 80D; claim HRA exemption if paying rent; claim home loan interest up to Rs 2 lakh u/s 24(b). Under the New Regime, income up to Rs 12.75 lakh is effectively zero tax without any investment needed.

New vs Old Regime · Interest u/s 234A/B/C · AY 2026-27

Income Tax Calculator India

Free Income Tax Calculator with quarter-wise TDS and date-wise advance tax — computes exact interest u/s 234A, 234B and 234C, surcharge with marginal relief, cess and final payable or refund. Compares New vs Old Regime.

⚡ 234A/B/C Interest✅ New vs Old Regime📊 STCG · LTCG · Marginal Relief🔒 Free · No Login

₹0Cost to Use

BothRegimes

AY 26-27Updated

234 A/B/CInterest

CAReviewed

🧮 Income Tax + Interest Calculator

AY 2026-27 (FY 2025-26) · STCG 20% · LTCG 12.5% above ₹1.25L · New Regime default

100% Free

Assessment Year

Age Category

Residential Status

NRIs don't get age-based higher exemption or basic-exemption set-off against capital gains.

ITR Due Date Applicable

Gross Salary (before any exemption) Annual

Auto-calculate HRA exemption u/s 10(13A)

HRA Exemption (manual) Old Regime only

Other Exempt Allowances — LTA, gratuity etc. Old only

Professional Tax Paid Old only · Max ₹2,500

Savings Bank Interest 80TTA/TTB

FD / Other Interest

Business / Professional Income

Other Income (rent, dividend etc.)

Home Loan Interest — Self-Occupied u/s 24(b) Old only · Max ₹2L

Let-Out Property — Net Income / (Loss) Loss set-off capped ₹2L

Enter a negative number for a loss. Total house-property loss set off against other heads is capped at ₹2,00,000 per year (Sec 71(3A)).

STCG — Listed Equity / Equity MF u/s 111A 20%

LTCG — Listed Equity / Equity MF u/s 112A 12.5% above ₹1.25L

LTCG — Property / Gold / Debt u/s 112 12.5% flat

STCG — Taxed at Slab Rate (property, debt MF)

Capital gains first arose in

Proviso to Sec 234C: no interest for earlier instalments on tax attributable to capital gains that arose later — provided the tax is paid in the remaining instalments.

These apply under the Old Regime only — except 80CCD(2) employer NPS, which is allowed in both.

80C Max ₹1.5L

80CCD(1B) NPS ₹50K

80D Health Insurance ₹25K–₹1L

80E Education Loan Interest

80G Donations eligible amt

80U / 80DD / 80DDB

80CCD(2) — Employer NPS Contribution Both regimes

Capped at 14% of Basic+DA in the New Regime, 10% in the Old Regime. Enter the actual employer contribution — the cap is applied automatically if Basic is provided.

Any Other Chapter VI-A Deduction

80TTA (₹10,000) / 80TTB (₹50,000 for seniors) is applied automatically on the interest income entered in Step 3.

TDS / TCS credited — quarter-wise

Q1 (Apr–Jun)

Q2 (Jul–Sep)

Q3 (Oct–Dec)

Q4 (Jan–Mar)

Take these from Form 26AS / AIS. Total TDS reduces "assessed tax" for 234B and 234C — this is the statutory treatment, so the quarter split is used for your schedule view and reconciliation.

Advance tax paid — challan-wise

Date of PaymentAmount (₹)

The date decides which instalment a payment counts towards for Sec 234C. A payment on 20 Sept counts for the 15 Dec instalment, not 15 Sept.

Self-Assessment Tax Already Paid

ITR Filing Date (actual or expected) for 234A / 234B

Relief u/s 89 / 90 / 91 (if any)

🧮

Fill the steps on the left and click
Calculate Tax + Interest
for a full computation with
234A / 234B / 234C interest.

📋 Tax Slabs

Income Tax Slab Rates — AY 2026-27 (FY 2025-26)

Budget 2025 rates. The New Regime is the default — you must opt into the Old Regime. Use the calculator above to see which one costs you less.

⚖️ Regime Comparison

New Tax Regime vs Old Tax Regime — Which is Better?

The answer depends entirely on your deductions. The calculator above compares both with your actual numbers.

Feature	New Regime	Old Regime
Standard Deduction	₹75,000	₹50,000
Section 80C	✗ Not Available	✓ Up to ₹1.5L
HRA Exemption u/s 10(13A)	✗ Not Available	✓ As per formula
Home Loan Interest u/s 24(b) — self-occupied	✗ Not Available	✓ Up to ₹2L
80D Health Insurance	✗ Not Available	✓ Up to ₹1L
NPS 80CCD(1B)	✗ Not Available	✓ ₹50,000 extra
Employer NPS 80CCD(2)	✓ 14% of Basic	✓ 10% of Basic
80TTA / 80TTB Interest	✗ Not Available	✓ ₹10K / ₹50K
Rebate u/s 87A	Zero tax up to ₹12L total income (₹12.75L for salaried)	Zero tax up to ₹5L
Maximum Surcharge	25%	37%
Age-based higher exemption	✗ Same for all ages	✓ ₹3L / ₹5L
Default Regime	✓ Yes	Must opt in

📚 Interest & Advance Tax

Interest u/s 234A, 234B and 234C — How It Is Actually Computed

The three interest sections most taxpayers get wrong. Here is exactly how each one works.

📅 Section 234C — Interest for Deferment of Advance Tax Instalments

234C penalises you for missing an instalment deadline, even if you pay the full tax by 31 March. For a non-presumptive assessee the schedule is: 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March. Interest is 1% per month for 3 months on the shortfall for the first three instalments and 1% for 1 month on the fourth. There is a safe harbour: no interest if you have paid at least 12% by the first instalment and 36% by the second. Crucially, the shortfall is measured against "tax due on returned income" — that is, total tax less TDS/TCS and relief, so your TDS credit reduces the base for every instalment. Capital gains exception: under the proviso, gains that arose after an instalment date do not attract 234C for the earlier instalments, provided the tax on them is paid in the remaining instalments. The calculator above applies all of this automatically once you enter your challan dates.

💸 Section 234B — Interest for Default in Payment of Advance Tax

234B applies when your total advance tax paid during the year is less than 90% of the assessed tax (assessed tax = total tax liability minus TDS, TCS and relief). Interest runs at 1% per month or part of a month from 1 April of the assessment year until the date you pay the balance or the assessment is completed. Note the trap: 234B is an all-or-nothing threshold — if you fall even slightly below 90%, interest applies on the entire shortfall, not just the amount below 90%. Under Rule 119A the shortfall is rounded down to the nearest ₹100 and any part of a month counts as a full month.

⏰ Section 234A — Interest for Late Filing of Return

If you file your ITR after the due date, 234A charges 1% per month or part month on the unpaid tax, running from the day after the due date to the date you actually file. The base is total tax less TDS, TCS, advance tax, self-assessment tax paid before the due date, and relief. If your entire liability was already covered by TDS and advance tax, 234A is nil even if you file late — but the separate late filing fee u/s 234F (₹1,000 if income ≤ ₹5L, otherwise ₹5,000) still applies. Due dates: 31 July for non-audit cases, 31 October for audit cases and 30 November where transfer pricing applies.

🧾 Why Monthly TDS Doesn't Change 234B/234C — But Challan Dates Do

A common misconception is that the month in which TDS was deducted alters your interest. Under the statute it does not: sections 234B and 234C both measure your position against assessed tax, which is already net of the full year's TDS, regardless of when it was deducted. What genuinely changes your interest is the date on which you paid each advance tax challan — a payment made on 20 September counts towards the 15 December instalment, not the 15 September one, and that shifts the 234C shortfall. That is why this calculator asks for challan dates rather than TDS dates. Entering TDS quarter-wise still matters for reconciling against Form 26AS and for spotting credits that haven't been reflected. TAXAJ handles complete TDS compliance →

📈 Capital Gains — STCG and LTCG Rates After Budget 2024

Rates changed with effect from 23 July 2024. Equity STCG u/s 111A: flat 20% (up from 15%). Equity LTCG u/s 112A:12.5% on gains above the ₹1.25 lakh annual exemption (up from 10% above ₹1L). Property, gold and other LTCG u/s 112: 12.5% without indexation — with an option of 20% with indexation for property acquired before 23 July 2024 by resident individuals and HUFs. Debt mutual funds purchased after 1 April 2023: always taxed at slab rates. Two further points the calculator handles: the 87A rebate is not available against 111A/112A income, and surcharge on capital gains is capped at 15% even where your other income attracts a higher rate. TAXAJ files capital gains ITR →

💰 Deductions Guide

All Deductions Available Under the Old Regime

Available only if you opt into the Old Tax Regime. Check with the calculator whether they beat the New Regime's lower slabs.

💰

Section 80C

EPF, PPF, ELSS, LIC, NSC, Home Loan Principal

Up to ₹1,50,000

Use PPF calculator → and SIP calculator → to plan.

🏥

Section 80D

Health Insurance — Self, Family, Parents

Up to ₹1,00,000

₹25K self/family (₹50K if senior) + ₹50K senior parents. Includes ₹5K preventive check-up within the limit.

🏠

Section 24(b)

Home Loan Interest (Self-Occupied)

Up to ₹2,00,000

Use EMI calculator →. Let-out property: full interest allowed, but loss set-off capped at ₹2L.

🏖️

Section 80CCD(1B)

NPS — Own Contribution

Up to ₹50,000

Over and above 80C. Saves ₹15,600 at the 30% slab. Use NPS calculator →

🏠

Section 10(13A)

HRA — House Rent Allowance

Least of 3 amounts

Least of: HRA received; rent paid − 10% of Basic; 50% (metro) / 40% (non-metro) of Basic. Use HRA calculator →

🎓

Section 80E

Education Loan Interest

No cap (8 years)

100% of interest on a higher-education loan, for 8 years from the year repayment begins.

🤝

Section 80G

Donations to Approved Institutions

50%–100%

PM Relief Fund and similar qualify at 100%. Others at 50%, subject to a 10%-of-adjusted-GTI ceiling.

🏦

80TTA / 80TTB

Interest Income Deduction

₹10,000 / ₹50,000

80TTA: ₹10K savings interest for those under 60. 80TTB: ₹50K on all deposit interest for senior citizens.

👨‍💼

Standard Deduction

Flat deduction for salaried & pensioners

₹75,000 (New) / ₹50,000 (Old)

No proof or investment required. Automatic in both regimes.

💡 Tax Saving Guide

Legal Ways to Reduce Your Tax — Act Before 31 March

Every item below is fully legal. Used together under the Old Regime they can cut tax by over ₹1 lakh.

💰

Section 80C — ₹1.5 Lakh

EPF, PPF, ELSS, LIC, NSC or home loan principal. ELSS has the shortest lock-in at 3 years.

Save up to ₹46,800

🏖️

NPS 80CCD(1B) — Extra ₹50,000

Over and above the 80C ceiling. NPS Tier 1 only.

Save up to ₹15,600

🏥

Health Insurance — 80D

₹25K self/family + ₹50K for senior parents. Buy before 31 March.

Save up to ₹23,400

🏠

HRA + Home Loan Together

You can claim both if you genuinely pay rent and service a home loan on another property.

Save up to ₹62,400

📊

New Regime — Zero Tax to ₹12.75L

₹75K standard deduction + enhanced 87A rebate means no tax for most salaried earners up to ₹12.75L.

Zero tax on ₹12.75L

📈

LTCG Harvesting — ₹1.25L Free

Book equity LTCG up to ₹1.25L each year tax-free and reinvest. Repeat annually.

Save ₹15,625 a year

📅

Pay Advance Tax On Time

Meeting the four instalment dates avoids 234B and 234C entirely — pure savings, no investment needed.

Avoid 1% per month

🧾

Reconcile Form 26AS & AIS

Unclaimed TDS is the single most common cause of an inflated demand notice. Check every quarter.

Recover missed credits

📊 File ITR with TAXAJ — CA Claims Every Deduction →

🔗 Related Tools & Services

Calculated Your Tax? TAXAJ Files Your ITR

Every calculator and filing service you need, in one place.

❓ FAQ

Frequently Asked Questions

No. Sections 234B and 234C both work off assessed tax, which is total tax less the full year's TDS and TCS — the timing of deduction is not part of the formula. What does change your interest is the date of each advance tax challan, because 234C tests your cumulative advance tax against 15% / 45% / 75% / 100% at four fixed dates. A payment made on 20 September misses the 15 September instalment entirely. That is why this calculator asks for challan dates. Entering TDS quarter-wise is still worth doing — it lets you reconcile against Form 26AS and catch credits your deductor hasn't filed.

Under the New Regime for FY 2025-26: gross ₹10L less ₹75,000 standard deduction gives total income of ₹9.25L, which is below the ₹12L rebate threshold, so tax is nil. Under the Old Regime: ₹10L less ₹50,000 standard deduction is ₹9.5L; with no other deductions the tax works out to roughly ₹1,06,600 including cess. Even with full 80C and 80D the Old Regime lands near ₹54,600. The New Regime wins comfortably at this income unless you have very large HRA and home loan claims.

Yes, in both places it arises. Surcharge marginal relief ensures that crossing ₹50 lakh, ₹1 crore, ₹2 crore or ₹5 crore never costs you more in extra tax than the extra income itself. 87A marginal relief in the New Regime does the same at the ₹12 lakh line — someone earning ₹12,10,000 pays only about ₹10,000, not the full slab tax, because the relief caps tax at the amount by which income exceeds ₹12L. Many online calculators skip both; this one applies them and shows the relief as a separate line in the computation.

No — and this trips up a lot of people. The rebate under Section 87A cannot be set against tax on Section 111A short-term capital gains or Section 112A long-term capital gains. So if your only income is ₹8 lakh of equity STCG, you still pay 20% on it despite being under the ₹12 lakh threshold. The calculator segregates special-rate income and applies the rebate only against tax on normal-rate income, which is the correct treatment.

31 July of the assessment year for salaried individuals and anyone not requiring an audit. 31 October where a tax audit under Section 44AB applies — companies, LLPs and businesses over the turnover threshold. 30 November where a transfer pricing report in Form 3CEB is required. Pick the right one in Step 1, because it sets the starting point for 234A interest. Filing late also triggers a fee under 234F of ₹1,000 where income is up to ₹5 lakh and ₹5,000 above that.

If you have no business or professional income, yes — you can choose afresh each year when filing, so long as you file by the due date. If you do have business income, you may opt out of the New Regime only once, and once you return to the New Regime you cannot go back to the Old Regime again. Opting out requires filing Form 10-IEA before the ITR due date. TAXAJ's team evaluates both regimes before filing every return.

It implements the slab rates, surcharge bands with marginal relief, the 4% cess, the 87A rebate with marginal relief, the ₹1.25 lakh 112A exemption, the 15% surcharge cap on capital gains, basic-exemption set-off against capital gains for residents, Section 288B rounding and the 234A/234B/234C formulas including the Rule 119A rounding and the 234C capital gains proviso. It is built for the common individual and HUF cases. It does not cover presumptive taxation under 44AD/44ADA instalment rules, AMT, clubbing, brought-forward losses, foreign income and DTAA relief, or partnership and company taxation. For anything beyond a straightforward return, have a CA review it — book a free 15-minute consult →

Calculated Your Tax? File ITR with TAXAJ — Starts ₹999

CA-filed in the optimal regime · every deduction claimed · interest computed correctly · turnaround under 24 hours.

📊 File My ITR Now 💬 WhatsApp a CA 📅 Free Consult 📞 Call Now

🏆 15,000+ Returns Filed · 4.9★ · Salaried · Business · NRI · Capital Gains

Disclaimer: This calculator is provided for general information and planning. It covers resident and non-resident individuals and HUFs under normal provisions. It does not handle presumptive taxation instalment rules u/s 44AD/44ADA, Alternate Minimum Tax, brought-forward or clubbed losses, foreign income and DTAA relief, or partnership/company taxation. Figures are indicative and are not a substitute for professional advice. Please have your computation reviewed before filing. Prepared by TAXAJ — Chartered Accountants.