How much income tax on a Rs 5 lakh salary

Under the new regime the 87A rebate makes tax nil for total income up to Rs 12,00,000, so a Rs 5 lakh salary is far inside the tax-free band. With the Rs 75,000 standard deduction on top, there's no tax to pay — with a very wide margin.

Unusually, a Rs 5 lakh salary is tax-free in the old regime too: after the Rs 50,000 standard deduction your income is within Rs 5,00,000, where the old-regime 87A rebate (up to Rs 12,500) cancels the tax. So both regimes give zero here.

Because both regimes produce zero, the usual old-versus-new analysis is moot at Rs 5 lakh — pick whichever is simpler (usually the new regime). The choice only starts to matter as your income rises past the old regime's Rs 5 lakh rebate ceiling.

The zero result assumes salary is your only income. Interest, a side income or other earnings stack on top; in the old regime they can cross the Rs 5,00,000 line quickly, while the new regime gives you room up to Rs 12,00,000.

At this level there's no tax, so make sure your employer isn't deducting TDS you'd only reclaim later. Declaring your regime and the nil liability keeps your full salary in hand through the year.