Income tax example · FY 2026-27
Income tax on a ₹35 lakh salary
Under the new regime for FY 2026-27, a ₹35 lakh salary pays ₹6,31,800 in income tax, an effective rate of 18.05%. That leaves about ₹2,39,017 a month before EPF and professional tax.
Result
₹6,31,800
Tax under the new regime, FY 2026-27
- Taxable income (after ₹75,000 standard deduction)
- ₹34,25,000
- Tax at slab rates
- ₹6,07,500
- Health and education cess (4%)
- ₹24,300
- Effective tax rate
- 18.05%
- Monthly take-home, before EPF
- ₹2,39,017
Under the old regime with no deductions, the tax would be ₹8,81,400. The old regime only matches or beats it if your deductions (80C, 80D, HRA, home loan interest and so on) add up to ₹8.01 lakh or more.
New regime vs old regime on ₹35 lakh
| Regime | Tax | Monthly take-home |
|---|---|---|
| New regime | ₹6,31,800 | ₹2,39,017 |
| Old regime, no deductions | ₹8,81,400 | ₹2,18,217 |
| Old regime, ₹1.5 lakh (80C) | ₹8,34,600 | ₹2,22,117 |
| Old regime, ₹3.75 lakh (80C, 80D, home loan) | ₹7,64,400 | ₹2,27,967 |
Old regime deductions are at their statutory limits: ₹1.5 lakh under 80C, ₹25,000 under 80D for your own health cover, and ₹2 lakh of home loan interest on a self-occupied house. HRA exemption, if you rent, comes on top.
New regime slab by slab on ₹34.25 lakh taxable
| Income slab | Rate | Income in slab | Tax |
|---|---|---|---|
| ₹0 - ₹4,00,000 | 0% | ₹4,00,000 | ₹0 |
| ₹4,00,000 - ₹8,00,000 | 5% | ₹4,00,000 | ₹20,000 |
| ₹8,00,000 - ₹12,00,000 | 10% | ₹4,00,000 | ₹40,000 |
| ₹12,00,000 - ₹16,00,000 | 15% | ₹4,00,000 | ₹60,000 |
| ₹16,00,000 - ₹20,00,000 | 20% | ₹4,00,000 | ₹80,000 |
| ₹20,00,000 - ₹24,00,000 | 25% | ₹4,00,000 | ₹1,00,000 |
| ₹24,00,000 and above | 30% | ₹10,25,000 | ₹3,07,500 |
New regime tax at other salaries, FY 2026-27
| Salary | Tax | Effective rate | Monthly take-home |
|---|---|---|---|
| ₹5 lakh | ₹0 | 0% | ₹41,667 |
| ₹6 lakh | ₹0 | 0% | ₹50,000 |
| ₹7 lakh | ₹0 | 0% | ₹58,333 |
| ₹8 lakh | ₹0 | 0% | ₹66,667 |
| ₹9 lakh | ₹0 | 0% | ₹75,000 |
| ₹10 lakh | ₹0 | 0% | ₹83,333 |
| ₹11 lakh | ₹0 | 0% | ₹91,667 |
| ₹12 lakh | ₹0 | 0% | ₹1,00,000 |
| ₹12.75 lakh | ₹0 | 0% | ₹1,06,250 |
| ₹13 lakh | ₹26,000 | 2% | ₹1,06,167 |
| ₹14 lakh | ₹81,900 | 5.85% | ₹1,09,842 |
| ₹15 lakh | ₹97,500 | 6.50% | ₹1,16,875 |
| ₹16 lakh | ₹1,13,100 | 7.07% | ₹1,23,908 |
| ₹18 lakh | ₹1,50,800 | 8.38% | ₹1,37,433 |
| ₹20 lakh | ₹1,92,400 | 9.62% | ₹1,50,633 |
| ₹22 lakh | ₹2,40,500 | 10.93% | ₹1,63,292 |
| ₹25 lakh | ₹3,19,800 | 12.79% | ₹1,81,683 |
| ₹30 lakh | ₹4,75,800 | 15.86% | ₹2,10,350 |
| ₹35 lakh | ₹6,31,800 | 18.05% | ₹2,39,017 |
| ₹40 lakh | ₹7,87,800 | 19.70% | ₹2,67,683 |
| ₹50 lakh | ₹10,99,800 | 22% | ₹3,25,017 |
| ₹75 lakh | ₹20,67,780 | 27.57% | ₹4,52,685 |
| ₹1 crore | ₹29,25,780 | 29.26% | ₹5,89,518 |
How this is worked out
Start with the salary, ₹35,00,000, and take off the ₹75,000 standard deduction every salaried person gets under the new regime. That leaves ₹34,25,000 of taxable income.
Tax that at the new regime's slab rates, which rise from 0% on the first ₹4 lakh in ₹4 lakh steps to 30% above ₹24 lakh. If taxable income is ₹12 lakh or less, the section 87A rebate (up to ₹60,000) cancels the tax completely; just above the limit, marginal relief caps the tax at the income over it.
Above ₹50 lakh a surcharge is added to the tax, and on top of everything comes 4% health and education cess. The result here is ₹6,31,800 in income tax, 18.05% of the salary.
The old regime has a smaller standard deduction (₹50,000) and higher slab rates, but allows deductions such as 80C, 80D, HRA and home loan interest. Which regime costs less depends on how much of those you actually claim, which is what the comparison table shows.
Frequently asked questions
Results are estimates for education and planning, not financial advice.
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