A ₹10 lakhs per annum (10 LPA) salary is one of the most common salary levels in India, especially for IT professionals with 2-5 years of experience. Let's calculate the exact tax and take-home salary for a ₹10 LPA CTC under both tax regimes.
Salary Breakup (Assumed)
| Component | Annual Amount | Monthly Amount |
|---|
| Basic Salary (40%) | ₹4,00,000 | ₹33,333 |
| HRA (20%) | ₹2,00,000 | ₹16,667 |
| Special Allowance | ₹4,00,000 | ₹33,333 |
| Total CTC | ₹10,00,000 | ₹83,333 |
New Tax Regime Calculation
| Step | Amount |
|---|
| Gross Income | ₹10,00,000 |
| Less: Standard Deduction | ₹75,000 |
| Taxable Income | ₹9,25,000 |
| Tax: 0-4L @ 0% | ₹0 |
| Tax: 4L-8L @ 5% | ₹20,000 |
| Tax: 8L-9.25L @ 10% | ₹12,500 |
| Total Slab Tax | ₹32,500 |
| Cess (4%) | ₹1,300 |
| Total Tax | ₹33,800 |
| Monthly Take-Home | ₹80,517 |
Old Tax Regime Calculation (No Deductions)
| Step | Amount |
|---|
| Gross Income | ₹10,00,000 |
| Less: Standard Deduction | ₹50,000 |
| Taxable Income | ₹9,50,000 |
| Tax: 0-2.5L @ 0% | ₹0 |
| Tax: 2.5L-5L @ 5% | ₹12,500 |
| Tax: 5L-9.5L @ 20% | ₹90,000 |
| Total Slab Tax | ₹1,02,500 |
| Cess (4%) | ₹4,100 |
| Total Tax (no deductions) | ₹1,06,600 |
| Monthly Take-Home | ₹74,450 |
With 80C Deductions (Old Regime)
If you invest ₹1.5L under Section 80C (PPF + ELSS) and have ₹25K health insurance (80D):
| Step | Amount |
|---|
| Taxable Income | ₹7,75,000 |
| Tax | ₹67,600 |
| Monthly Take-Home | ₹77,700 |
Verdict
At ₹10 LPA, the New Tax Regime is clearly better, saving you ₹33,800 vs ₹67,600 even after ₹1.75L in deductions under the Old Regime. Use our calculator to check with your exact deduction amounts.