People often ask how much tax will have to be paid on a salary of ₹1 crore to ₹10 crore under the New vs Old Income Tax Regime and how much money will be left in hand. Every high-salary earner needs to know this. There is a huge difference in the deductions and in-hand salary in both the tax slabs. If you want to save tax on a high salary, then this comparison can be very beneficial for you. So let's try to understand the complete calculation.

If the salary is in crores, how much money do you take home?

Which is the best in comparison to the new and old income tax slab of India, this remains a question in itself. By the way, there is a big difference in the tax burden and net income (in-hand salary) of these two. It is believed that the new tax slab usually gives more in-hand salary. So let's know how much difference is there between the new and old slabs in different salary brackets.

Difference between new and old tax regime on salary 1 crore
Let us assume that if you are choosing the new tax slab, the in-hand salary on a salary of ₹1 crore will be around ₹70,74,220. Whereas in the old tax slab, this salary will be reduced to around ₹67,99,660.

The difference between the two on a salary of ₹5 crore
So let us now talk about what can be included in the two on a salary of 5 crore. In the new income tax slab, the in-hand salary on a salary of ₹5 crore will be around ₹3,10,75,250. Whereas in the old tax system, this in-hand salary will be reduced to around ₹3,07,63,250.

How much tax will be levied on a salary of ₹10 crore?
As our income increases, the tax rate also increases in both systems. So now let's also know how much tax will be levied on salary. So let us tell you that the average tax rate on a salary of ₹ 1 crore in the new tax is 29.26%, while in the old tax slab, it will be around 32%. Whereas, on a salary of ₹ 10 crores, the tax rate in the new tax will be 38.42%, while in the old it will be around 42.46%.

Why is the in-hand salary higher in the new tax?
In every salary bracket, the in-hand salary is higher under the new tax slab. For example, suppose on a salary of ₹ 1 crore, the in-hand income in the new tax will be 70.74% and in the old slab it will be around 67.99%. Whereas on a salary of ₹ 10 crore, this difference will be 61.58% in the new and 57.54% in the old.

Benefits of the old tax system
The old income tax slab offers the benefit of deductions and exemptions, which can reduce the tax liability. Under section 80C, up to ₹1.5 lakh exemption (on investment in PPF, EPF, LIC, etc.) is available. Standard deduction benefits of ₹50,000 and exemption on home loan and insurance premiums are available. Also, HRA (House Rent Allowance) exemption and exemption on donation under section 80G are available.

Benefits of the new tax system
The new tax is considered better than the old one. The new income tax slab provides a simple tax slab, but no deductions or exemptions are available in it. However, if you want a simple tax slab and more in-hand salary, then the new system can be beneficial.

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