Income Tax on ₹5 Lakh Salary (New vs Old Regime)
Complete tax ledger, deduction breakdown, and monthly TDS computation for an annual income of ₹5,00,000.
Monthly TDS deduction: ₹0/mo
Monthly TDS deduction: ₹0/mo
Slab-wise Tax Computation (New Regime)
| Slab Bracket | Tax Rate | Taxable in Bracket | Tax Amount |
|---|---|---|---|
| ₹1 – ₹3,00,000 | 0% | ₹3,00,000 | ₹0 |
| ₹3,00,001 – ₹7,00,000 | 5% | ₹1,25,000 | ₹6,250 |
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What Is Left After Tax on ₹5 Lakh?
Income tax is only one of three deductions on an Indian payslip. On ₹5,00,000 a year the New Regime takes ₹0 — an effective rate of 0.00% across the whole salary, well below the top marginal slab rate because the earlier brackets are taxed at lower rates. Employee EPF and state Professional Tax come out on top of that, which is what separates your taxable salary from the amount that actually lands in your bank account.
Income Tax on ₹5 Lakh — Frequently Asked Questions
How much income tax do I pay on a ₹5 Lakh salary under the New Tax Regime?
Nothing. On a ₹5 Lakh annual salary the ₹75,000 standard deduction brings taxable income to ₹4,25,000, which falls within the Section 87A rebate limit — so the tax payable is ₹0.
Is a ₹5 Lakh salary tax-free in India?
Yes. With the ₹75,000 standard deduction and the Section 87A rebate, a ₹5 Lakh salary attracts zero income tax under the New Tax Regime for a resident individual.
New Regime or Old Regime — which is cheaper for ₹5 Lakh?
At ₹5 Lakh the two regimes are close, and the Old Regime costs ₹0 less before deductions. If you claim HRA, 80C and 80D in full, the Old Regime is likely the better choice.
How much monthly TDS will my employer deduct on ₹5 Lakh?
Your employer spreads the annual liability across twelve months, so expect roughly ₹0 per month under the New Regime. The actual deduction varies month to month — it is recalculated whenever you declare investments, and bonus months carry a higher deduction.
Does the ₹5 Lakh figure include EPF and professional tax?
No. This page computes income tax only. Employee EPF (12% of basic pay) and state Professional Tax (up to ₹2,500 a year) are separate deductions taken from your salary before it reaches your account. Use the in-hand salary calculator to see all three together.
Check income tax for other salary levels:
Slab rates verified against Finance Act provisions on .