On a salary of ₹10.5 lakh in FY 2026-27 (AY 2027-28), your income tax under the New regime is ₹0 - the Section 87A rebate wipes it out. The Old regime can't beat zero (you'd pay ₹1,17,000 under it with only the standard deduction), so the New regime is the clear choice.
₹10.5 lakh salary - tax at a glance
| Particulars | Amount |
|---|---|
| Gross salary | ₹10,50,000 |
| Tax - New regime (incl. cess) | ₹0 |
| Tax - Old regime, standard deduction only | ₹1,17,000 |
| Recommended regime | New (saves ₹1,17,000) |
| Break-even deduction | - (New is ₹0, unbeatable) |
| Monthly in-hand (New regime) | ₹87,500 |
How the tax is calculated (New regime)
Taxable income after the ₹75,000 standard deduction = ₹9,75,000. It falls into these slabs:
| Slab · rate | Tax |
|---|---|
| Up to ₹4,00,000 · 0% | ₹0 |
| ₹4,00,000 – ₹8,00,000 · 5% | ₹20,000 |
| ₹8,00,000 – ₹9,75,000 · 10% | ₹17,500 |
| Tax on slabs | ₹37,500 |
| Rebate u/s 87A | − ₹37,500 |
| Health & Education cess (4%) | ₹0 |
| Total tax (New regime) | ₹0 |
Should you pick the Old or New regime at ₹10.5 lakh?
Because taxable income after the ₹75,000 standard deduction stays within the ₹12 lakh rebate limit, the new regime brings tax to zero. See how the ₹12 lakh zero-tax band works.
Your real tax depends on your 80C, HRA, NPS and home-loan interest. Add them and compare both regimes in seconds.
Calculate your exact tax →
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