India Salary Calculator 2025ā2026: New Tax Regime (Sec 115BAC), Slabs & In-Hand Pay
Calculate your exact in-hand salary and income tax liability in India under the statutory New Tax Regime (Section 115BAC) as amended by Finance (No. 2) Act 2024 for FY 2024ā25 (AY 2025ā26). Understand your gross CTC, ā¹75,000 standard deduction, Section 87A rebate, 4% cess, and monthly bank credits.
How Indian Salary Tax & In-Hand Pay Is Calculated
- Standard Deduction: A flat ā¹75,000 standard deduction is subtracted from gross annual salary to determine net taxable income.
- Section 115BAC Progressive Slabs: Taxable income is taxed progressively: 0% (ā¹0āā¹3L), 5% (ā¹3Lāā¹7L), 10% (ā¹7Lāā¹10L), 15% (ā¹10Lāā¹12L), 20% (ā¹12Lāā¹15L), and 30% (above ā¹15L).
- Section 87A Full Rebate: If net taxable income is ā¹7,00,000 or less, a full rebate up to ā¹25,000 is credited, reducing tax to ā¹0. Marginal relief protects incomes marginally above ā¹7L.
- Health & Education Cess: A mandatory 4% cess is added to the computed tax liability.
- Monthly In-Hand Pay: Total annual tax divided by 12 is deducted from monthly gross pay to compute your monthly credited take-home salary.
Representative Salary Examples (New Tax Regime AY 2025ā2026)
| Annual Gross Salary | Standard Deduction | Taxable Income | Total Tax (incl. Cess) | Monthly In-Hand Pay |
|---|---|---|---|---|
| ā¹7,50,000 (7.5 LPA) | ā¹75,000 | ā¹6,75,000 | ā¹0 (Sec 87A Rebate) | ā¹62,500 / mo |
| ā¹10,00,000 (10 LPA) | ā¹75,000 | ā¹9,25,000 | ā¹44,200 (4.4% eff.) | ā¹79,650 / mo |
| ā¹15,00,000 (15 LPA) | ā¹75,000 | ā¹14,25,000 | ā¹1,19,600 (8.0% eff.) | ā¹1,15,033 / mo |
| ā¹25,00,000 (25 LPA) | ā¹75,000 | ā¹24,25,000 | ā¹4,18,600 (16.7% eff.) | ā¹1,73,450 / mo |
Statutory Provenance & Ruleset Details
- State-level Professional Tax (e.g., ā¹2,500/year in Maharashtra/Karnataka)
- Employee Provident Fund (EPF 12%) and Voluntary PF deductions
- AY 2026ā27 7-slab projection models available as secondary forward projections
Frequently Asked Questions (Income Tax & In-Hand Salary)
What is the zero-tax salary threshold under the New Tax Regime in India?
Under Section 115BAC as amended by Finance (No. 2) Act 2024, salaried individuals pay zero income tax on gross salaries up to ā¹7,75,000 per year. This is achieved by subtracting the ā¹75,000 standard deduction under Section 16(ia), bringing net taxable income to ā¹7,00,000, which qualifies for a 100% tax rebate under Section 87A (maximum rebate ā¹25,000).
What is the standard deduction for salaried individuals in AY 2025ā2026?
The standard deduction for salaried employees and pensioners under the default New Tax Regime was increased from ā¹50,000 to ā¹75,000 by Finance (No. 2) Act 2024. This flat deduction is automatically subtracted from gross salary before applying the tax slab rates.
How is the 4% Health and Education Cess calculated?
The 4% Health and Education Cess is calculated on the total income tax payable (after adjusting for any applicable tax rebates or surcharges). For example, if your computed income tax is ā¹50,000, the 4% cess is ā¹2,000, making your total tax liability ā¹52,000.
Are Chapter VI-A deductions (Section 80C, 80D, HRA) available in the New Tax Regime?
No. The New Tax Regime (Section 115BAC) disallows most common exemptions and deductions, including Section 80C (PPF, ELSS, EPF up to ā¹1.5L), Section 80D (health insurance), House Rent Allowance (HRA), and Leave Travel Concession (LTC). In exchange, it provides significantly wider slabs and lower marginal tax rates.
What are the surcharge rates on high-income salaries in India?
Under the New Tax Regime, surcharges apply to taxable incomes exceeding ā¹50 Lakhs: 10% for income between ā¹50L and ā¹1 Crore, 15% for income between ā¹1Cr and ā¹2 Crores, and a capped maximum surcharge of 25% for income exceeding ā¹2 Crores (compared to 37% in the Old Tax Regime).