Income tax on ₹10 L salary, FY 2025-26

The standard deduction for FY 2025-26 is ₹75,000 for salaried individuals under the new tax regime. This amount is automatically deducted from your gross salary before calculating taxable income.

No, the new tax regime is optional. You can choose between the old and new regime each year while filing your tax returns. However, the new regime is the default option from FY 2023-24 onwards.

Under Section 87A, individuals with taxable income up to ₹12 lakh (after standard deduction) get a full tax rebate in the new regime. This means zero tax liability for income up to ₹12.75 lakh (₹12 lakh + ₹75,000 standard deduction).

The new tax regime offers lower tax rates but doesn't allow most deductions like 80C (investments), 80D (insurance), HRA, etc. Only the standard deduction of ₹75,000 is available. Compare both regimes to see which is more beneficial for you.

If your taxable income is a little over ₹12 lakh, your tax in the new regime cannot be more than the amount above ₹12 lakh. At ₹12.1 lakh taxable, tax is capped at ₹10,000 plus cess.

Employer PF up to 12% of basic is not part of your taxable salary, which is why the calculator asks for CTC minus employer PF.

It uses the slabs and rates notified by the Income Tax Department for FY 2025-26, the 87A rebate with marginal relief, surcharge above ₹50 lakh and the 4% cess, for salaried residents under both regimes. For capital gains, business income or arrears, check with a tax professional.

The due date for filing income tax returns for individuals (whose accounts don't need auditing) is typically July 31st of the assessment year. For FY 2025-26, you would file returns by July 31, 2026.