Income Tax on ₹30 to ₹36 Lakh Salary in India

Once you cross the ₹30 lakh salary mark, your paycheque starts looking serious – but so does your tax liability. What looks like a ₹30 lakh income on paper isn’t what hits your bank account. Between deductions, cess, and changing tax rules, your actual post-tax earnings can swing quite a bit, depending on whether you choose the old or the new tax regime.

But the old vs. new regime debate isn’t black and white. Back in Budget 2020, the government rolled out a new tax regime. It offered lower rates but took away a host of deductions and exemptions. Let’s dig into what that really looks like, shall we? 

Income Tax Calculation – Old vs New Regime

Now, let us calculate the income tax payable under both the old and new regimes on salaries between ₹30 and ₹36 lakh in India. For the sake of clarity, let’s keep the calculations simple. We’re assuming your income is purely salary-based, and under the old regime, you’re claiming the full ₹1.5 lakh deduction under Section 80C. 

It is also worth noting that if you contribute to the National Pension System (NPS), you may be eligible for additional deductions under both regimes.

1. Tax on ₹30 Lakh Income in India

Particulars	Old Regime (₹)	New Regime (₹)
Gross Salary	30,00,000	30,00,000
Less: Standard Deduction	50,000	75,000
Less: 80C Deduction	1,50,000	–
Net Taxable Income	28,00,000	29,25,000
Tax Before Cess	6,52,500	4,57,500
Cess (4%)	26,100	18,300
Total Tax Payable	6,78,600	4,75,800
New Regime Savings		₹2,02,800

2.  Tax on ₹31 Lakh Salary in India

Particulars	Old Regime (₹)	New Regime (₹)
Gross Salary	31,00,000	31,00,000
Less: Standard Deduction	50,000	75,000
Less: 80c Deduction	1,50,000	–
Net Taxable Income	29,00,000	30,25,000
Tax Before Cess	6,82,500	4,87,500
Cess (4%)	27,300	19,500
Total Tax Payable	7,09,800	5,07,000
New Regime Savings		₹2,02,800

3. Tax on ₹32 Lakh Salary in India

Particulars	Old Regime (₹)	New Regime (₹)
Gross Salary	32,00,000	32,00,000
Less: Standard Deduction	50,000	75,000
Less: 80c Deduction	1,50,000	–
Net Taxable Income	30,00,000	31,25,000
Tax Before Cess	7,12,500	5,17,500
Cess (4%)	28,500	20,700
Total Tax Payable	₹7,41,000	₹5,38,200
New Regime Savings		₹2,02,800

4. Tax on ₹33 Lakh Salary in India

Particulars	Old Regime (₹)	New Regime (₹)
Gross Salary	33,00,000	33,00,000
Less: Standard Deduction	50,000	75,000
Less: 80c Deduction	1,50,000	–
Net Taxable Income	31,00,000	32,25,000
Tax Before Cess	7,42,500	5,47,500
Cess (4%)	29,700	21,900
Total Tax Payable	₹7,72,200	₹5,69,400
New Regime Savings		₹2,02,800

4. Tax on ₹34 Lakh Salary in India

Particulars	Old Regime (₹)	New Regime (₹)
Gross Salary	34,00,000	34,00,000
Less: Standard Deduction	50,000	75,000
Less: 80c Deduction	1,50,000	–
Net Taxable Income	32,00,000	33,25,000
Tax Before Cess	7,72,500	5,77,500
Cess (4%)	30,900	23,100
Total Tax Payable	₹8,03,400	₹6,00,600
New Regime Savings		₹2,02,800

5. Tax on ₹35 Lakh Salary in India

Particulars	Old Regime (₹)	New Regime (₹)
Gross Salary	35,00,000	35,00,000
Less: Standard Deduction	50,000	75,000
Less: 80c Deduction	1,50,000	–
Net Taxable Income	33,00,000	34,25,000
Tax Before Cess	8,02,500	6,07,500
Cess (4%)	32,100	24,300
Total Tax Payable	₹8,34,600	₹6,31,800
New Regime Savings		₹2,02,800

6. Tax on ₹36 Lakh Salary in India

Particulars	Old Regime (₹)	New Regime (₹)
Gross Salary	36,00,000	36,00,000
Less: Standard Deduction	50,000	75,000
Less: 80c Deduction	1,50,000	–
Net Taxable Income	34,00,000	35,25,000
Tax Before Cess	8,32,500	6,37,500
Cess (4%)	33,300	25,500
Total Tax Payable	₹8,65,800	₹6,63,000
New Regime Savings		₹2,02,800

Which Regime Is Better?

On first glance, the new regime looks like a clear winner with fewer complications, and across the ₹30 – ₹36 lakh band, a consistent tax saving – ₹2,02,800 in most cases. But that’s assuming your tax file is minimal, as this illustration: no rent benefits, no deductions beyond Section 80C, no insurance, no NPS contributions, no home loan interest.

If you’re someone who makes full use of tax-saving options – like investing under Section 80C, contributing to NPS, paying for health insurance, and claiming HRA because you live on rent, then the old regime might actually work better for you. Even though the tax rates are higher, the deductions can lower your taxable income enough to make it worth it.

Conclusion

Hitting a ₹ 30l+ salary bracket feels rewarding – until you realise how much tax you have to pay before it hits your bank account. Choosing the right tax regime won’t magically fix that, but it can tighten the leak.

Don’t copy-paste someone else’s choice.  Your salary structure, your lifestyle, and your deductions can help you choose the right fit. And remember: once you lock in a regime, switching it mid-year isn’t as flexible as you might hope.

So, take the time to calculate both options. Don’t just go by what looks cheaper upfront. At this income level, small choices can make a big difference in what actually lands in your account.