If you earn an annual salary of ₹5,00,000 (₹5 Lakh) in the Financial Year 2025-26, here is your complete income tax computation under the New Tax Regime. This analysis covers your exact deductions, slab-wise tax calculation, surcharge applicability, health and education cess, and your final monthly take-home pay.
| Component | Amount |
|---|---|
| Gross Annual Salary (CTC) | ₹5,00,000 |
| Less: Standard Deduction (Sec 16) | - ₹75,000 |
| Less: Professional Tax (Maharashtra) | - ₹2,500 |
| Net Taxable Income | ₹4,22,500 |
| Income Tax (Base) | ₹0 |
| Surcharge | ₹0 |
| Health & Education Cess (4%) | ₹0 |
| Total Tax Payable | ₹0 |
| Annual Take-Home Pay | ₹5,00,000 |
| Monthly Take-Home Pay | ₹41,667 |
Slab-by-Slab Analysis
Your taxable income of ₹4,22,500 spans two slabs: 0% on the first ₹4 Lakh and 5% on the amount between ₹4-8 Lakh.
Surcharge & Cess Details
No surcharge is applicable at this income level. A Health and Education Cess of 4% amounting to ₹0 is applied on the total of base tax and surcharge. This brings your final effective tax rate to 0.0% .
New vs Old Regime Comparison
For a salary of ₹5 Lakh, the New Tax Regime results in a total tax of ₹0 , while the Old Tax Regime (assuming standard deductions of ₹2 Lakh under 80C/80D) results in a total tax of ₹8,970 . At this income level, both regimes result in effectively zero tax due to applicable rebates.
Key Takeaway
On an annual salary of ₹5 Lakh in FY 2025-26, your monthly in-hand salary after all tax deductions would be approximately ₹41,667 . The government automatically deducts TDS from your monthly paycheck, so your actual credit will be close to this figure (minor variations may apply based on employer-specific allowances and perquisites).