- Gross salary
- ₹40,00,000
- Tax, new regime
- ₹7,87,800
- Tax, old regime (₹2 lakh deductions)
- ₹9,75,000
- Better choice
- New regime
- Monthly tax (new regime)
- ₹65,650
How it is worked out
New regime: ₹40 lakh minus the ₹75,000 standard deduction gives taxable income of ₹39,25,000. Slab tax is ₹7,57,500, and 4% cess adds ₹30,300.