How much income tax do I pay on ₹4 lakh salary?

A salaried person earning ₹4 lakh per year pays ZERO income tax under the New Regime for FY 2025-26. Calculation: Gross salary: ₹4,00,000 Less standard deduction: ₹75,000 Taxable income: ₹3,25,000 Section 87A rebate applies because taxable income does not exceed ₹12,00,000. This eliminates all income tax. A 4% cess on zero tax is also zero. Final tax = ₹0 Monthly take-home: ₹33,333 (full salary, no tax deducted) Old Regime: ₹0 (also zero tax — 87A rebate applies)

What is the monthly take-home salary for ₹4 lakh CTC?

Monthly take-home salary for ₹4 lakh annual salary (New Regime, FY 2025-26): Annual salary: ₹4,00,000 Annual income tax: ₹0 (zero tax) Annual take-home: ₹4,00,000 Monthly take-home: ₹33,333 Note: This assumes the full ₹4 lakh is basic + allowances with no PF deduction. In practice, most employers deduct: - Employee PF: 12% of basic salary (if basic is part of CTC) - Professional Tax: ₹200/month in most states - Health insurance premium (if employer-provided) CTC vs Take-home: If ₹4L is your CTC (Cost to Company), your in-hand salary may be lower depending on how PF, gratuity and other components are structured. This calculator shows the income tax component only.

New Regime or Old Regime — which is better for ₹4 lakh salary?

For a ₹4 lakh salary with no extra deductions, BOTH regimes result in zero tax. New Regime: ₹0 tax (87A rebate on taxable income of ₹3,25,000) Old Regime: ₹0 tax (87A rebate on taxable income of ₹3,50,000) Choose New Regime because: ✓ Standard deduction is ₹75,000 (vs ₹50,000 in Old Regime) — you keep more money ✓ No need to invest or submit proofs ✓ Simpler compliance The Old Regime has no advantage at this income level even with maximum 80C (₹1.5L) and 80D (₹25K) deductions — the tax is zero in both cases.

INCOME TAX ON ₹4 LAKH SALARY — FY 2025-26 (AY 2026-27)

INCOME TAX ON ₹4 LAKH · SALARIED · NEW REGIME · FY 2025-26

NEW REGIME (DEFAULT)

NIL

🎉 Zero tax — 87A rebate eliminates all tax

EFFECTIVE RATE

0.00%

MONTHLY TAKE-HOME

₹33,333

OLD REGIME (NO EXTRA DEDUCTIONS)

NIL

EFFECTIVE RATE

0.00%

MONTHLY TAKE-HOME

₹33,333

NEW REGIME — SLAB BREAKDOWN (₹4L SALARIED)

Slab	Rate	Taxable Amt	Tax
Standard deduction	—	−75,000	—
Up to Rs.4L	0%	₹3,25,000	Nil
Rs.4L - Rs.8L	5%	Nil	Nil
Rs.8L - Rs.12L	10%	Nil	Nil
Rs.12L - Rs.16L	15%	Nil	Nil
Rs.16L - Rs.20L	20%	Nil	Nil
Rs.20L - Rs.24L	25%	Nil	Nil
Above Rs.24L	30%	Nil	Nil
Section 87A rebate — taxable income ≤ ₹12,00,000 → Full rebate → Tax = ₹0
TOTAL TAX (incl. 4% cess)			NIL

KEY FACTS — ₹4L SALARY (NEW REGIME)

GROSS SALARY

₹4,00,000

STANDARD DEDUCTION

₹75,000

TAXABLE INCOME

₹3,25,000

TOTAL TAX

NIL

EFFECTIVE RATE

0.00%

MONTHLY TAKE-HOME

₹33,333

NEW vs OLD — ₹4L (NO EXTRA DEDUCTIONS)

	New Regime	Old Regime
Std deduction	₹75,000	₹50,000
Taxable income	₹3,25,000	₹3,50,000
Total tax	NIL	NIL
Effective rate	0.00%	0.00%
Monthly take-home	₹33,333	₹33,333

→ Calculate with YOUR deductions — New vs Old Comparison

back Rs.3L

Rs.5L next

OTHER SALARY LEVELS

₹3L ₹5L ₹6L ₹7L

Was this calculator helpful?

Income tax on ₹4 lakh salary · New Regime FY 2025-26 · Salaried · Std deduction ₹75,000 · Zero tax — Section 87A rebate applies · Eff. rate 0.0% · Budget 2025