How Much Income Tax Do You Pay on a ₹40–₹60 Lakh Salary in India?

If you earn a salary between ₹40 lakh to ₹60 lakh annually, then you are among some of the highest earners in India. But with higher earnings comes higher tax liability. And how much you pay can vary greatly depending on which tax regime you choose: old or new. 

If you don’t plan your taxes right, you could lose lakhs of rupees every year. This article breaks down your tax on ₹40 lakh, ₹50 lakh, and ₹60 lakh salary in India under both regimes so you can make smarter choices.

What is Tax? What are the Different Sources of Income? 

Income tax is the money you pay to the government from what you earn. It is used to finance public services like infrastructure, hospitals, and education.

In India, income can come from five main sources: 

1. Salary
2. House property
3. Business or profession
4. Capital gains 
5. Other sources

Tax Regime Explained  

You can choose between two tax systems: old and new. Your tax amount changes based on which one you pick.

Old Regime

This regime gives you many deductions and exemptions. You can lower your taxable income by claiming:

• Up to ₹1.5 lakh per financial year under Section 80C (PF, ELSS, LIC, etc.)
• Up to ₹50,000 under Section 80CCD(1B) (NPS)
• ₹50,000 standard deduction
• HRA (House Rent Allowance), LTA (Leave Travel Allowance), and health insurance under Section 80D
• Employer’s NPS Contribution under Section 80CCD(2): Govt: 14% of salary (Basic + DA), Others: 10% 

But, the tax rates are higher.

New Regime

This regime offers lower tax rates. But you can’t claim most deductions or exemptions, except for: 

• ₹75,000 standard deduction   
• Employer’s NPS contribution under Section 80CCD(2): up to 14% of salary 

Income Tax Calculation – Old vs New  

Let’s calculate tax on 40 lakh salary, 50 lakh salary and 60 lakh salary under both regimes. 

These figures assume:

• Income is only from salary.
• Under the old regime, a few deductions and exemptions are claimed: ₹1.5L (80C) + ₹1.5 lakh (HRA exemption) + ₹50K standard deduction = ₹3.5 lakh.
• Under the new regime, only ₹75K standard deduction is availed.

1. Tax on 40 Lakh Salary in India

Here’s a detailed breakdown of 40 lakh tax in India under both regimes for FY 2025-26. 

	Old Regime (amount in ₹)	New Regime (amount in ₹)
Gross Salary	40,00,000	40,00,000
Less: HRA	1,50,000	–
Less: Standard Deduction	50,000	75,000
Gross Total Income	38,00,000	39,25,000
Less: Eligible Deductions (80 C)	1,50,000	–
Net Taxable Income	36,50,000	39,25,000

Tax under the old regime:

Income Tax Slabs (FY 2025-26)	Rate of Tax	Tax (₹)
₹0 to 2.5 Lakh	Nil	0
₹2.5 – 5 Lakh	5%	2.5L × 5% = 12,500
₹5 – 10 Lakh	20%	5L × 20% = 1,00,000
Above ₹10 Lakh	30%	26.5L × 30% = 7,95,000
Total Tax Before Cess		9,07,500
Health and Education Cess @4%		36,300
Total Tax Payable		9,43,800

Tax under the new regime: 

Income Tax Slabs (FY 2025-26)	Rate of Tax	Tax (₹)
₹ 0 – 4 Lakh	NIL	0
₹ 4 – 8 Lakh	5%	4L x 5% = 20,000
₹ 8 – 12 Lakh	10%	4L x 10% = 40,000
₹ 12 – 16 Lakh	15%	4L x 15% = 60,000
₹ 16 – 20 Lakh	20%	4L x 20% = 80,000
₹ 20 – 24 Lakh	25%	4L x 25% = 1,00,000
Above ₹ 24 Lakh	30%	15.25L x 30% = 4,57,500
Total Tax Before Cess		7,57,500
Health and Education Cess @4%		30,300
Total Tax Payable		7,87,800

If you opt for the new regime, you can save ₹1,56,000 in taxes. 

2. Tax on 50 Lakh Salary in India

Here’s a detailed breakdown of 50 lakh tax in India under both regimes for FY 2025-26. 

	Old Regime (amount in ₹)	New Regime (amount in ₹)
Gross Salary	50,00,000	50,00,000
Less: Eligible Exemptions and Deductions	3,50,000	75,000
Net Taxable Income	46,50,000	49,25,000
Total Tax Liability (including cess)	12,55,800	10,99,800
Tax Savings in New Regime		1,56,000

3. Tax on 60 Lakh Salary in India

Here’s a detailed breakdown of 60 lakh salary income tax under both regimes for FY 2025-26. 

Note that if your income exceeds ₹50 lakhs and is below ₹1 crore, you will have to pay a surcharge of 10%. 

	Old Regime (amount in ₹)	New Regime (amount in ₹)
Gross Salary	60,00,000	60,00,000
Less: Eligible Exemptions and Deductions	3,50,000	75,000
Net Taxable Income	56,50,000	59,25,000
Income Tax	15,07,500	13,57,500
Surcharge	1,50,750	1,35,750
Health and Education Cess	66,330	59,730
Total Tax Liability	17,24,580	15,52,980
Tax Savings in New Regime		1,71,600

Conclusion 

If your salary falls in the ₹40–₹60 lakh range, your tax burden is significant. Choosing the right tax regime makes a real difference. Use the old regime if you want to claim HRA, 80C, and other deductions. The new regime suits those with fewer exemptions and simpler finances.

Always compare both systems based on your exact deductions. Before you choose, use an income tax calculator or consult a tax advisor.

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