Income Tax on ₹7 lakh Salary (FY 2026-27)

Q: Income Tax on ₹7 lakh Salary (FY 2026-27)?

On a ₹7 lakh salary, your income tax for FY 2026-27 is nil in the new regime, thanks to the ₹75,000 standard deduction and the 87A rebate.

On a ₹7 lakh salary, your income tax for FY 2026-27 is nil in the new regime, thanks to the ₹75,000 standard deduction and the 87A rebate.

Gross salary: ₹7,00,000
Tax, new regime: ₹0
Tax, old regime (₹2 lakh deductions): ₹0
Better choice: New regime
Monthly tax (new regime): ₹0

How it is worked out

New regime: ₹7 lakh minus the ₹75,000 standard deduction gives taxable income of ₹6,25,000. Slab tax is ₹11,250, the 87A rebate takes off ₹11,250, and 4% cess adds ₹0.

The working, both regimes

	New regime	Old regime
Taxable income	₹6,25,000	₹4,50,000
Tax on slabs	₹11,250	₹10,000
Rebate (87A)	−₹11,250	−₹10,000
Surcharge	₹0	₹0
Cess (4%)	₹0	₹0
Total tax	₹0	₹0

Income Tax on ₹7 lakh Salary (FY 2026-27)

How it is worked out

The working, both regimes

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