How much of your high salary do you take home? A comparison of India’s new and old income tax regimes for earnings between ₹1 crore and ₹10 crore highlights the significant differences in tax burden and net income. The data reveals a clear trend: the new regime typically offers a higher take-home pay. The comparison between the new and old regimes for different salary levels shows variations in tax liability and in-hand income.
₹1 crore salary: New vs old regime
“Under the new regime, a salary of ₹1 crore will result in an in-hand salary of ₹70,74,220. In contrast, under the Old Regime, the in-hand salary will be 67,99,660,” said Abhishek Soni, CEO and Co-founder of Tax2win.
₹5 crore salary: New vs old regime
“Under the new regime, a salary of ₹5 crore will result in an in-hand salary of ₹3,10,75,250. In contrast, under the Old Regime, the in-hand salary will be ₹3,07,63,250,” Abhishek Soni said.
“At a salary of one crore, the average tax rate is 29.26% in the New Regime, compared to 32% in the Old Regime. As the salary increases, the average tax rate in both regimes also increases, reaching 38.42% in the New Regime and 42.46% in the Old Regime for ₹10 crore income,” the CEO of Tax2win added.
The percentage of in-hand income is higher in the new regime at all levels. “For instance, at ₹1 crore salary, the in-hand percentage is 70.74% under the New Regime, compared to 67.99% under the Old Regime. However, as income increases, the gap narrows, with in-hand percentages of 61.58% (New) vs 57.54% (Old) at ₹10 crore,” Soni added.
The new tax regime offers slightly lower tax rates and a higher in-hand salary across different income levels, making it a more attractive option for higher-income individuals.
₹2.5 lakh to ₹5 lakh – 5% tax
₹5 lakh to ₹10 lakh – 20% tax
New Tax Regime
The New Regime was introduced with simplified tax rates but without the benefits of exemptions, deductions, and rebates like the Old Regime.
₹12 lakh – ₹16 lakh → 15%
₹16 lakh – ₹20 lakh → 20%
₹20 lakh – ₹24 lakh → 25%
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