How to calculate income tax on salary with example: Learn how to calculate

Learn how to calculate income tax on salary with simple examples under both the old and new tax regimes in India. A clear guide for salaried individuals Find out the income tax basics for salaried individuals on income from salary , how to save income tax , retirement benefits, take home salary from CTC, etc. Calculating income tax on salary involves using tax slabs, which are ranges of income that are taxed at a specific rate. For example , consider an individual earning ₹10 lakhs per annum under the new tax regime for AY 2025-26. The next 4 lakhs (7 - 3 = 4 lakhs), are taxed at 5%, resulting in a tax of 20,000 (4 lakhs x 5%). Lastly, the last 3 lakh (10 - 7 = 3 lakh) is taxed at 10%, which results in a tax of 30,000 (1 lakh x 15%). In total, the tax amount is 50,000 (20,000 + 30,000 + 50,000). Understand how to calculate income tax on salary in India 2025. Includes slab rates, deductions, and tax regime comparison for better salary planning. Click to know more!