New Regime Tax Breakdown
Under the new regime, only the standard deduction of ₹75,000 is allowed. No other deductions like 80C, 80D, or HRA are available.
| Income Slab | Rate | Tax |
|---|---|---|
| ₹0 - ₹4,00,000 | 0% | ₹0 |
| ₹4,00,000 - ₹8,00,000 | 5% | ₹20,000 |
| ₹8,00,000 - ₹8,25,000 | 10% | ₹2,500 |
| Tax on Income | ₹22,500 | |
| Less: Sec 87A Rebate | -₹22,500 | |
| Add: 4% Cess | +₹0 | |
| Total Tax Payable | ₹0 |
Old Regime Tax Breakdown
Under the old regime with only the standard deduction of ₹50,000 (no other deductions claimed). With additional deductions, the old regime tax could be significantly lower.
| Income Slab | Rate | Tax |
|---|---|---|
| ₹0 - ₹2,50,000 | 0% | ₹0 |
| ₹2,50,000 - ₹5,00,000 | 5% | ₹12,500 |
| ₹5,00,000 - ₹8,50,000 | 20% | ₹70,000 |
| Tax on Income | ₹82,500 | |
| Add: 4% Cess | +₹3,300 | |
| Total Tax Payable | ₹85,800 |
Analysis: New Regime is Better
For a gross salary of ₹9 Lakh with only standard deduction, the new regime saves ₹85,800 compared to the old regime. The new regime benefits from wider tax slabs and a higher standard deduction of ₹75,000.
At this income level, the new regime provides zero tax thanks to the Section 87A rebate, which eliminates tax for taxable income up to ₹12 lakh.
The effective tax rate under the best regime is 0.0%, meaning your annual take-home (before other deductions) would be approximately ₹9,00,000 or ₹75,000/month.