How much income tax on a Rs 11 lakh salary in FY 2026-27? Nil under the new tax regime. Salary of Rs 11,00,000 minus the Rs 75,000 standard deduction gives taxable income of Rs 10,25,000. Slab tax is Rs 42,500, and the Section 87A rebate (available up to Rs 12 lakh of taxable income) cancels all of it. Under the old regime the same salary costs Rs 49,920 to Rs 1,32,600 depending on deductions (new regime slabs and rebate unchanged for FY 2026-27 by Union Budget 2026; incometaxindia.gov.in).
At Rs 11 lakh a year, about Rs 91,667 a month, you are comfortably inside the zero-tax zone of the new regime. You also have Rs 1,75,000 of headroom before a raise starts costing you tax. The questions that matter at this salary are not how to save tax, but how to stop TDS you do not owe, whether the old regime is ever worth it, and what happens when your next increment lands.
This guide works through the exact numbers for FY 2026-27 (tax year 2026-27, return due in 2027).
New Regime: Step-by-Step Calculation
The new regime is the default. You do not need to file any form to use it.
Step 1: Standard Deduction
| Particulars | Amount |
|---|---|
| Gross annual salary | Rs 11,00,000 |
| Less: standard deduction | (Rs 75,000) |
| Taxable income | Rs 10,25,000 |
Step 2: Slab Tax
| Income slab | Rate | Tax |
|---|---|---|
| Up to Rs 4,00,000 | Nil | Rs 0 |
| Rs 4,00,001 to Rs 8,00,000 | 5% | Rs 20,000 |
| Rs 8,00,001 to Rs 10,25,000 | 10% | Rs 22,500 |
| Tax before rebate | Rs 42,500 |
Step 3: Section 87A Rebate
| Particulars | Amount |
|---|---|
| Tax before rebate | Rs 42,500 |
| Less: Section 87A rebate (taxable income below Rs 12 lakh; cap Rs 60,000) | (Rs 42,500) |
| Tax after rebate | Rs 0 |
| Health and education cess at 4% | Rs 0 |
| Total tax | Rs 0 |
Effective tax rate: 0%. Monthly TDS: Rs 0.
The rebate is a credit against tax, available to resident individuals whose total income does not exceed Rs 12 lakh. At Rs 11 lakh salary your tax of Rs 42,500 is well inside the Rs 60,000 cap. See our Section 87A rebate guide for the full rules.
Old Regime: Three Scenarios
The old regime taxes at 5%, 20% and 30% above Rs 2.5 lakh, but allows deductions such as 80C, 80D, HRA and home loan interest. The standard deduction is Rs 50,000. A salaried person without business income picks the old regime in the ITR filed by the due date; tell your employer at the start of the year so TDS matches. See how to choose between the regimes.
Scenario A: Standard Deduction Only
| Particulars | Amount |
|---|---|
| Salary | Rs 11,00,000 |
| Standard deduction | (Rs 50,000) |
| Taxable income | Rs 10,50,000 |
| Tax: Rs 12,500 + Rs 1,00,000 + 30% of Rs 50,000 | Rs 1,27,500 |
| Cess at 4% | Rs 5,100 |
| Total tax | Rs 1,32,600 |
Scenario B: 80C and 80D
| Deduction | Amount |
|---|---|
| Standard deduction | Rs 50,000 |
| Section 80C (EPF, PPF, ELSS, life insurance) | Rs 1,50,000 |
| Section 80D (self and family) | Rs 25,000 |
| Total deductions | Rs 2,25,000 |
| Particulars | Amount |
|---|---|
| Taxable income | Rs 8,75,000 |
| Tax: Rs 12,500 + 20% of Rs 3,75,000 | Rs 87,500 |
| Cess at 4% | Rs 3,500 |
| Total tax | Rs 91,000 |
Scenario C: HRA, NPS and Parents' Health Cover
| Deduction | Amount |
|---|---|
| Standard deduction | Rs 50,000 |
| Section 80C | Rs 1,50,000 |
| Section 80D (self Rs 25,000 + parents Rs 25,000) | Rs 50,000 |
| Section 80CCD(1B), own NPS contribution | Rs 50,000 |
| HRA exemption | Rs 1,20,000 |
| Professional tax | Rs 2,500 |
| Total deductions | Rs 4,22,500 |
| Particulars | Amount |
|---|---|
| Taxable income | Rs 6,77,500 |
| Tax: Rs 12,500 + 20% of Rs 1,77,500 | Rs 48,000 |
| Cess at 4% | Rs 1,920 |
| Total tax | Rs 49,920 |
Even with Rs 4.2 lakh of deductions, the old regime costs about Rs 50,000 more than the new regime.
What It Takes for the Old Regime to Tie
The old regime has its own rebate, but only up to Rs 5 lakh of taxable income. To get there from Rs 11 lakh, you need Rs 6,00,000 of total deductions, including the standard deduction. That usually means a full 80C, HRA on a high rent, and home loan interest on a let-out or second property at the same time. Even then the old regime only matches zero; it cannot do better.
Practical conclusion: at Rs 11 lakh, stay in the new regime.
Side by Side
| New regime | Old regime (Scenario B) | |
|---|---|---|
| Standard deduction | Rs 75,000 | Rs 50,000 |
| 80C, 80D, HRA, 24(b) | Not allowed | Allowed |
| Employer NPS, 80CCD(2) | Allowed | Allowed |
| Taxable income | Rs 10,25,000 | Rs 8,75,000 |
| Total tax | Rs 0 | Rs 91,000 |
| Monthly tax | Rs 0 | Rs 7,583 |
Your Raise: Rs 1.75 Lakh of Headroom
The rebate works on taxable income up to Rs 12,00,000, which is a salary of Rs 12,75,000. From Rs 11 lakh, you can take a raise of up to Rs 1,75,000 and still pay nothing.
| Salary | Taxable income | Tax |
|---|---|---|
| Rs 11,00,000 | Rs 10,25,000 | Nil |
| Rs 12,00,000 | Rs 11,25,000 | Nil |
| Rs 12,75,000 | Rs 12,00,000 | Nil |
| Rs 13,00,000 | Rs 12,25,000 | Rs 26,000 (after marginal relief) |
| Rs 13,50,000 | Rs 12,75,000 | Rs 74,100 |
Just above Rs 12,75,000, marginal relief caps the tax at the income above Rs 12 lakh, but cess is added on top, so a raise from Rs 12.75 lakh to Rs 13 lakh actually leaves you slightly worse off. If your next offer lands in that band, ask for part of it as employer NPS contribution. Our Rs 13 lakh salary guide works through the numbers.
Monthly Take-Home at Rs 11 Lakh
| Component | Monthly | Annual |
|---|---|---|
| Gross salary | Rs 91,667 | Rs 11,00,000 |
| Income tax (TDS) | Rs 0 | Rs 0 |
| Employee EPF (12% of basic, if basic is 40% of salary) | (Rs 4,400) | (Rs 52,800) |
| In-hand before professional tax | Rs 87,267 | Rs 10,47,200 |
Professional tax, where your state levies it, reduces in-hand by up to Rs 2,500 a year. Employee EPF counts toward 80C only in the old regime, but it is your own savings either way.
Common Mistakes at Rs 11 Lakh
- Letting the employer deduct TDS. If you declared the old regime or submitted old-regime proofs through Form 12BB, your employer may deduct tax you do not owe. Confirm the new regime early in the year.
- Skipping the ITR. Gross income above Rs 4 lakh means you must file, even at zero tax. It is also the only way to get back TDS deducted in error.
- Assuming other income is tax-free too. Interest, rent and freelance income are added to salary. If they push taxable income above Rs 12 lakh, the rebate is lost. Capital gains taxed at special rates are never covered by the rebate.
- Buying tax-saving products you do not need. ELSS lock-ins and insurance-linked policies bought only for 80C give no tax benefit in the new regime.
- Ignoring employer NPS. Employer contributions under 80CCD(2), up to 14% of basic plus DA, are deductible in the new regime and are the one lever that still works at this salary.
How Tax Garden Helps
Tax Garden's ITR filing service confirms your regime choice, checks Form 16 and AIS for any other income that could break the rebate, and gets excess TDS refunded. If a raise is on the way, we work out whether an NPS restructuring keeps you at zero. See also our guides to income tax on Rs 10 lakh salary, Rs 12 lakh salary and Rs 15 lakh salary.
Frequently Asked Questions
How much income tax do I pay on a Rs 11 lakh salary?
Nil under the new regime for FY 2026-27. After the Rs 75,000 standard deduction, taxable income is Rs 10,25,000, the slab tax is Rs 42,500, and the Section 87A rebate wipes it out because taxable income is below Rs 12 lakh. No cess is payable either.
How much tax on Rs 11 lakh salary under the old regime?
Rs 1,32,600 with only the Rs 50,000 standard deduction, Rs 91,000 with Rs 1.5 lakh under 80C and Rs 25,000 under 80D, and Rs 49,920 even with HRA, NPS and parents' health insurance on top. The new regime's zero beats all three.
Can the old regime ever beat the new regime at Rs 11 lakh?
Only by matching zero. You would need total deductions of at least Rs 6 lakh, including the Rs 50,000 standard deduction, to bring old-regime taxable income down to Rs 5 lakh, where its own rebate makes tax nil. Even then the old regime only ties; it cannot beat zero.
How much more can I earn and still pay zero tax?
Up to Rs 12,75,000 of salary. With the Rs 75,000 standard deduction, that is exactly Rs 12 lakh of taxable income, the upper limit for the rebate. A raise of up to Rs 1,75,000 from Rs 11 lakh keeps your tax at nil, provided you have no other income.
My employer is deducting TDS on my Rs 11 lakh salary. Why?
Usually because you told your employer you want the old regime, or because of other income or perquisites in the projection. Confirm the new regime with your employer so TDS stops. Anything already deducted comes back as a refund when you file your ITR.
Do I need to file an ITR if my tax is zero?
Yes. Filing is mandatory when gross total income before deductions exceeds the basic exemption limit, which is Rs 4 lakh under the new regime. A Rs 11 lakh salary is well above that, so you must file even though the tax works out to nil.
Does the rebate cover capital gains at Rs 11 lakh salary?
No. The Section 87A rebate in the new regime applies only to tax on income at normal slab rates. Tax on equity STCG at 20% and LTCG at 12.5% under Sections 111A and 112A is payable in full even if your salary alone would be tax-free.
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Sources
New regime slabs, the Rs 75,000 standard deduction and the Section 87A rebate (up to Rs 60,000 for total income up to Rs 12 lakh) as introduced by the Finance Act, 2025 and continued for tax year 2026-27 by Union Budget 2026; old regime slabs, the Rs 50,000 standard deduction and the old regime rebate for income up to Rs 5 lakh; Sections 80C, 80CCD(1B), 80CCD(2), 80D and 10(13A); Section 115BAC(6) on choosing the old regime in the return. All tax figures recomputed for this article. Confirm current rates on incometaxindia.gov.in before filing.
