Last updated: 2026-10-21 · FY 2026-27 (AY 2027-28) rules
New regime vs old regime for ₹5 lakh
The new regime is cheaper, even if you claim 80C, 80D, NPS and ₹2 lakh of home loan interest in the old regime.
| Scenario | Taxable income | Yearly tax | Monthly |
|---|---|---|---|
| New regime | ₹4,25,000 | ₹0 | ₹0 |
| Old regime, no deductions | ₹4,47,600 | ₹0 | ₹0 |
| Old regime, 80C ₹1.5L + 80D ₹25k | ₹2,72,600 | ₹0 | ₹0 |
| Old regime, + NPS ₹50k + home loan interest ₹2L | ₹22,600 | ₹0 | ₹0 |
New regime calculation, step by step
| Gross salary | ₹5,00,000 |
|---|---|
| Standard deduction | − ₹75,000 |
| Taxable income | ₹4,25,000 |
| Tax as per slabs | ₹1,250 |
| Rebate u/s 87A | − ₹1,250 |
| Cess (4%) | ₹0 |
| Total tax | ₹0 |
Slab-wise tax (new regime)
| Slab | Rate | Income in slab | Tax |
|---|---|---|---|
| ₹0 – ₹4,00,000 | Nil | ₹4,00,000 | ₹0 |
| ₹4,00,000 – ₹8,00,000 | 5% | ₹25,000 | ₹1,250 |
Monthly in-hand salary
If ₹5 lakh is your gross salary, you'd take home about ₹39,667 a month under the new regime, after ₹1,800 employee PF, ₹200 professional tax and ₹0 income tax. If ₹5 lakh is your CTC, your take-home will be a little lower. Check it with the in-hand salary calculator.
Frequently asked questions
How much tax do I pay on a ₹5 lakh salary?
Nothing under the new regime. After the ₹75,000 standard deduction, your taxable income is ₹4,25,000, and the Section 87A rebate cancels the tax for taxable income up to ₹12 lakh.
Which tax regime is better for a ₹5 lakh salary?
The new regime. Even with 80C, 80D, NPS and ₹2 lakh of home loan interest, the old regime costs ₹0 compared with ₹0 in the new regime.
How much tax is deducted from my salary every month?
About ₹0 a month under the new regime, as your employer spreads the yearly tax evenly. It can change if you submit investment proofs or get a bonus.