Tax on ₹10 Lakh or ₹8 Lakh Salary FY 2026-27: ₹0

Part of the system: Old vs new regime in 3 steps. Steps, checks and a free printable page.

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Rates checked on 6 October 2026 against the CBDT Tax Reference Tables for the Income-tax Act, 2025 on incometaxindia.gov.in (Tax Rates page, last reviewed 28 September 2026): new-regime slabs under section 202, the section 156 rebate and marginal relief, old-regime slabs, and 4% health and education cess. Every figure on this page was recomputed by hand on 10 October 2026 (docs/calc-tests) and matches the calculator.

Short answer

Under the new regime a ₹10 lakh salary pays ₹0 in tax for tax year 2026-27, and so does an ₹8 lakh salary. After the ₹75,000 standard deduction, ₹9,25,000 (or ₹7,25,000) is taxable. Slab tax on that is ₹32,500 (or ₹16,250), and the section 156 rebate of up to ₹60,000 cancels all of it. Other income such as FD interest stays tax-free until total taxable income reaches ₹12 lakh. That leaves ₹2,75,000 of room on a ₹10 lakh salary and ₹4,75,000 on ₹8 lakh. The old regime never goes below zero, so the best it can do here is tie.

Why the tax is zero

Step	₹8 lakh salary	₹10 lakh salary
Less ₹75,000 standard deduction (s.19)	₹7,25,000 taxable	₹9,25,000 taxable
5% on ₹4 to 8 lakh	₹16,250	₹20,000
10% on ₹8 to 12 lakh	nil	₹12,500
Slab tax	₹16,250	₹32,500
Rebate, section 156 (old 87A)	−₹16,250	−₹32,500
Tax and cess	₹0	₹0

The rebate is up to ₹60,000 and applies while taxable income is ₹12 lakh or less. Both salaries use only part of it: ₹16,250 at ₹8 lakh and ₹32,500 at ₹10 lakh. Nothing is left to pay, so no cess either, and your employer should deduct no TDS once you tell them you are on the new regime.

How much other income fits before tax starts

The ₹12 lakh limit counts all your taxable income, not just salary. FD interest, savings account interest and freelance fees taxed at slab rates all add to it. The standard deduction covers salary only, so every rupee of that other income counts in full.

Taxable salary and the room left below ₹12 lakh

Bars drawn to scale, 40 px per lakh. Room means income taxed at slab rates that keeps total taxable income at or below ₹12 lakh.

Going past the line does not make the whole slab tax due at once. Marginal relief caps the tax at the amount by which taxable income exceeds ₹12 lakh, until taxable income reaches about ₹12,70,588. A ₹10 lakh salary plus ₹3 lakh of FD interest gives ₹12,25,000 taxable: slab tax would be ₹63,750, but relief caps it at ₹25,000, and with cess the bill is ₹26,000. The ₹13 lakh page covers that band in detail.

What the old regime would charge

The old regime's rebate stops at ₹5 lakh of taxable income. To pay nothing there, your deductions on top of the ₹50,000 standard deduction have to reach ₹2,50,000 on an ₹8 lakh salary and ₹4,50,000 on ₹10 lakh. Below that, you pay tax that the new regime would not charge.

Deductions (on top of the ₹50,000 standard deduction)	Old regime, ₹8 lakh	Old regime, ₹10 lakh	New regime
None	₹65,000	₹1,06,600	₹0
₹2,27,500 (s.123 ₹1.5 lakh, own NPS ₹50,000, health insurance ₹25,000, professional tax)	₹17,680	₹59,280	₹0
₹2,50,000	₹0	₹54,600	₹0
₹4,50,000	₹0	₹0	₹0

The ₹8 lakh row has a cliff. At ₹2,27,500 of deductions the old-regime taxable income is ₹5,22,500, just over the ₹5 lakh rebate line, and the tax is ₹17,680. Another ₹22,500 of deductions brings it to ₹5,00,000 and the tax to zero. Either way the old regime only ties the new one, so at these salaries the comparison ends at zero.

Worked examples

₹10 lakh salary plus ₹1.2 lakh of FD interest

Taxable income: ₹9,25,000 + ₹1,20,000 = ₹10,45,000. Slab tax is ₹20,000 + ₹24,500 = ₹44,500, which the rebate cancels in full. Tax: ₹0.

If the bank deducted TDS on that interest, the money is not lost. It shows against your PAN, and you claim it back as a refund when you file the return.

₹10 lakh salary plus ₹3.5 lakh of freelance fees

Taxable income: ₹9,25,000 + ₹3,50,000 = ₹12,75,000. That is above ₹12 lakh, so the rebate is gone. Slab tax is ₹60,000 on the first ₹12 lakh plus 15% of ₹75,000 (₹11,250): ₹71,250.

Marginal relief would cap the tax at the ₹75,000 excess, but the slab tax is already lower, so relief gives nothing. With cess the tax is ₹74,100. ₹2.75 lakh of fees would have been tax-free; the extra ₹75,000 costs ₹74,100. Expenses you can set against freelance income lower the taxable figure, so count them before you add the fees.

Tips and tricks

How we would use it

Questions people ask

How much TDS will be cut on a ₹10 lakh salary?

None under the new regime, because the tax for the year is zero. If you have not told your employer which regime you want, they apply the new regime by default.

Is a ₹10 lakh salary tax-free in the old regime?

Only if your deductions reach ₹4,50,000 on top of the ₹50,000 standard deduction. With ₹2,27,500 of common deductions the old-regime tax is ₹59,280.

What is the tax on ₹8 lakh per year?

₹0 under the new regime. Slab tax on the ₹7,25,000 taxable is ₹16,250 and the section 156 rebate cancels it. You can add up to ₹4,75,000 of other slab-rate income before tax starts.

What is the highest salary with zero tax?

₹12,75,000, if you have no other income. The ₹75,000 standard deduction brings it to ₹12,00,000 taxable, the rebate limit. One rupee more and tax starts, though marginal relief keeps it small at first.

I am 60 to 79 with ₹10 lakh of pension. Is anything different?

The new regime is the same at any age: zero. In the old regime your basic exemption is ₹3 lakh, but the rebate still ends at ₹5 lakh taxable, so you still need ₹4,50,000 of deductions to pay nothing there.

Written by Bulan Sarkar, who checked the results by hand and against a second public calculator. Use it for planning; it isn't tax or investment advice.

Sources

Income Tax Calculator

Tax for 2026-27 under both regimes, slab by slab, with the ₹12 lakh rebate and its marginal relief, employer NPS, surcharge, cess, monthly TDS and your marginal rate.