How to save tax on Rs. 9 lakh salary

For Tax Year 2026-27, a Rs. 9 lakh salary has zero tax under the new regime after the Rs. 75,000 standard deduction. Under the old regime, estimated tax is Rs. 85,800.
Get Quote
Check life insurance policies
Get Quote
3 min
Sep 30, 2026

A Rs. 9 lakh salary can have zero income tax under the new regime for Tax Year 2026-27 when you are an eligible resident individual and your total income qualifies for the Section 87A rebate. With only the standard deduction, taxable income is Rs. 8.25 lakh.

  • New-regime standard deduction: Rs. 75,000.
  • Tax before Section 87A rebate: Rs. 22,500.
  • Eligible Section 87A rebate: up to Rs. 60,000, limited to the tax payable.
  • Old-regime standard deduction: Rs. 50,000.
  • Estimated old-regime tax: Rs. 85,800 including 4% cess.
  • Eligible life insurance premiums can form part of the aggregate Rs. 1.5 lakh deduction under Section 123, subject to the applicable old-regime conditions.

Explore life insurance plans based on your protection needs and check a quote before choosing a policy.

At a glance

ParticularsNew tax regimeOld tax regime
Gross salaryRs. 9,00,000Rs. 9,00,000
Standard deductionRs. 75,000Rs. 50,000
Taxable incomeRs. 8,25,000Rs. 8,50,000
Tax before rebate/cessRs. 22,500Rs. 82,500
Section 87A rebateRs. 22,500Nil
Estimated final taxRs. 0Rs. 85,800

The current new-regime standard deduction is Rs. 75,000, while the old-regime standard deduction is Rs. 50,000. Health and Education Cess is 4% of income tax and applicable surcharge.

What did Budget 2026 change for incomes of Rs. 9 lakh or more?

Budget 2026 did not introduce another change to the individual income-tax rates. The current rates therefore continue for Tax Year 2026-27. The Section 87A rebate threshold was raised under the new regime to Rs. 12 lakh and the maximum rebate to Rs. 60,000.

For a Rs. 9 lakh salary, the higher Section 87A threshold is especially relevant. After the Rs. 75,000 standard deduction, taxable income is Rs. 8.25 lakh, so the Rs. 22,500 tax calculated under the slabs can be fully offset by the rebate for an eligible resident individual.

The current new-regime slabs are:

  • Up to Rs. 4 lakh: Nil
  • Rs. 4 lakh to Rs. 8 lakh: 5%
  • Rs. 8 lakh to Rs. 12 lakh: 10%
  • Rs. 12 lakh to Rs. 16 lakh: 15%
  • Rs. 16 lakh to Rs. 20 lakh: 20%
  • Rs. 20 lakh to Rs. 24 lakh: 25%
  • Above Rs. 24 lakh: 30%

What are the current income tax slabs under the new tax regime?

The current new-regime slab structure is no longer a proposed change. It applies from the tax year beginning 1 April 2026 under the provisions carried into the current framework.

Taxable incomeTax rate
Up to Rs. 4 lakhNil
Rs. 4 lakh to Rs. 8 lakh5%
Rs. 8 lakh to Rs. 12 lakh10%
Rs. 12 lakh to Rs. 16 lakh15%
Rs. 16 lakh to Rs. 20 lakh20%
Rs. 20 lakh to Rs. 24 lakh25%
Above Rs. 24 lakh30%

For Rs. 9 lakh gross salary, the Rs. 75,000 standard deduction reduces taxable income to Rs. 8.25 lakh. The slab tax is therefore Rs. 22,500 before the applicable Section 87A rebate.

The Section 87A rebate can reduce the tax to zero for an eligible resident individual where total income does not exceed Rs. 12 lakh, subject to the applicable rules.

How have the new tax slabs changed under the old vs. new tax regime?

The new-regime slabs have changed over the years, while the traditional old-regime slab structure for an individual below 60 years has remained broadly unchanged.

PeriodNew-regime slab structure
FY 2023-24Nil up to Rs. 3 lakh; 5% Rs. 3–6 lakh; 10% Rs. 6–9 lakh; 15% Rs. 9–12 lakh; 20% Rs. 12–15 lakh; 30% above Rs. 15 lakh
FY 2024-25Nil up to Rs. 3 lakh; 5% Rs. 3–7 lakh; 10% Rs. 7–10 lakh; 15% Rs. 10–12 lakh; 20% Rs. 12–15 lakh; 30% above Rs. 15 lakh
FY 2025-26Nil up to Rs. 4 lakh; 5% Rs. 4–8 lakh; 10% Rs. 8–12 lakh; 15% Rs. 12–16 lakh; 20% Rs. 16–20 lakh; 25% Rs. 20–24 lakh; 30% above Rs. 24 lakh
Tax Year 2026-27Same seven-slab structure as FY 2025-26

The current structure was introduced through the 2025 tax changes and continues for Tax Year 2026-27.

For historical comparison, the old-regime slabs for individuals below 60 remain Nil up to Rs. 2.5 lakh, 5% from Rs. 2.5 lakh to Rs. 5 lakh, 20% from Rs. 5 lakh to Rs. 10 lakh and 30% above Rs. 10 lakh.

What tax-saving options remain above Rs. 9 lakh salary under the new regime?

The new regime does not generally allow the deductions available under the old regime, such as the aggregate deduction corresponding to old Section 80C. However, certain deductions and exemptions continue where the law specifically permits them.

BenefitCurrent position
Standard deductionRs. 75,000 for eligible salaried taxpayers
Employer contribution to specified pension schemeAvailable subject to prescribed conditions
Family pension deductionAvailable subject to prescribed conditions
Certain work-related allowancesAvailable where statutory conditions are met
Eligible home-loan interest for let-out propertySubject to applicable conditions

The Rs. 75,000 standard deduction is available to salaried individuals under the new regime. The Section 123 deduction for specified savings payments, including eligible life insurance premiums, is not available under the new concessional regime.

Can life insurance premiums reduce new-regime tax?

No. Eligible life insurance premiums can form part of the aggregate Rs. 1.5 lakh deduction under Section 123, but this deduction is not available when you use the new concessional regime.

Life insurance can still provide financial protection. Its purchase should therefore be based on your coverage requirement rather than the expectation of a new-regime premium deduction.

What tax deductions are available above Rs. 9 lakh salary under the old regime?

The old regime continues to allow specified deductions, subject to the applicable conditions. From Tax Year 2026-27, the earlier Section 80C provisions are represented through Section 123 and Schedule XV of the Income-tax Act, 2025.

Some relevant provisions include:

  • Section 123: Aggregate deduction of up to Rs. 1.5 lakh for specified qualifying payments, including eligible life insurance premiums and provident-fund contributions.
  • Section 126: Eligible health insurance premiums and specified medical expenses, subject to prescribed limits and conditions.
  • Home-loan interest: Eligible interest deductions can apply under the house-property provisions, subject to conditions.
  • NPS contributions: Eligible contributions can provide deductions under applicable provisions.
  • Education-loan interest and donations: Additional deductions may be available when their respective conditions are satisfied.

The old Section 80C, 80D and similar references may still appear in older content and documents, but the current Income-tax Act, 2025 uses new section numbering for Tax Year 2026-27.

Pro Tip

Create wealth and meet your financial goals with a ULIP investment plan, start investing from Rs. 3,000/month.

health-insurance-banner

Conclusion

How can you save tax for salary above Rs. 9 lakh?

The first step is to compare both tax regimes using your taxable income, not simply your gross salary or CTC.

For a salary slightly above Rs. 9 lakh, the new regime can still provide a substantial rebate benefit until the applicable Section 87A threshold is reached. Under the old regime, eligible deductions can reduce taxable income further.

1. Compare both regimes:

Calculate tax under the new regime after the Rs. 75,000 standard deduction and compare it with the old regime after the Rs. 50,000 standard deduction and your eligible deductions.

2. Check deductions you already qualify for:

Review eligible life insurance premiums, health insurance payments, NPS contributions, home-loan interest and other qualifying claims under the old regime.

3. Consider your insurance requirement separately:

A term insurance plan can provide life cover, while eligible premiums may have tax implications under the applicable old-regime provisions.

4. Do not invest only for a deduction:

A tax benefit should be considered alongside the purpose, cost, coverage and conditions of the financial product.

Explore life insurance plans according to your protection needs and get a quote before choosing a policy.

How can you pay no income tax on a Rs. 9 lakh salary?

For an eligible resident salaried individual, the new regime can result in zero income tax on a Rs. 9 lakh salary without additional tax-saving investments.

The calculation is:

  1. Gross salary: Rs. 9,00,000
  2. Less standard deduction: Rs. 75,000
  3. Taxable income: Rs. 8,25,000
  4. Income tax before rebate: Rs. 22,500
  5. Section 87A rebate: Rs. 22,500
  6. Final income tax: Rs. 0

The Section 87A rebate from Tax Year 2026-27 can be up to Rs. 60,000 for eligible resident individuals whose total income does not exceed Rs. 12 lakh. The rebate is limited to the income tax payable under the specified new-regime rates.

Can the old regime also result in zero tax?

Yes, but the calculation depends on the deductions and exemptions you actually qualify for.

For example, an individual earning Rs. 9 lakh could potentially reduce taxable income through eligible deductions such as the Section 123 aggregate deduction, eligible health-insurance deduction, qualifying home-loan interest and eligible NPS contributions.

However, these deductions should not be assumed automatically. Each has separate eligibility conditions, limits and documentation requirements.

The old-regime Section 87A rebate applies to eligible resident individuals whose total income does not exceed Rs. 5 lakh, with a maximum rebate of Rs. 12,500.

Therefore, the old-regime route to zero tax depends on whether your eligible deductions reduce total income to Rs. 5 lakh or below.

Conclusion

A Rs. 9 lakh salary can have zero income tax under the new regime for Tax Year 2026-27 when you are an eligible resident individual and your total income qualifies for the Section 87A rebate. After the Rs. 75,000 standard deduction, the Rs. 9 lakh salary becomes Rs. 8.25 lakh taxable income and the Rs. 22,500 calculated tax can be fully offset by the rebate.

Under the old regime, the same Rs. 9 lakh salary results in Rs. 8.50 lakh taxable income after the Rs. 50,000 standard deduction and estimated tax of Rs. 85,800 including 4% cess.

For taxpayers using the old regime, eligible life insurance premiums can form part of the aggregate Rs. 1.5 lakh deduction under Section 123, while health insurance, NPS, home-loan interest and other deductions may also apply when their conditions are met.

Tax note: Tax laws are subject to change. BFL does NOT provide Tax/Investment advisory services. Please consult your advisors.

Frequently asked questions

How much tax should I pay for a Rs. 9 lakh salary?

For Tax Year 2026-27, assuming you are a resident salaried individual below 60, have Rs. 9 lakh salary and no other taxable income, estimated tax is zero under the new regime after the Rs. 75,000 standard deduction and applicable Section 87A rebate. Under the old regime, estimated tax is Rs. 85,800 after the Rs. 50,000 standard deduction and 4% cess.

How can I save tax on a Rs. 9 lakh salary?

An eligible resident individual can have zero tax under the new regime on a Rs. 9 lakh salary in the basic case. The Rs. 75,000 standard deduction reduces taxable income to Rs. 8.25 lakh, producing Rs. 22,500 tax before rebate. Section 87A can fully offset that tax when its conditions are satisfied. Special-rate income or other taxable income can change the result.

Which tax regime is better for 9 lakh CTC?

Compare taxable income rather than CTC alone because CTC can include components that are not all taxed in the same way. In a simple Rs. 9 lakh salary example, the new regime can result in zero tax after the standard deduction and Section 87A rebate. The old regime produces estimated tax of Rs. 85,800 before additional eligible deductions.

What are the new income tax slabs proposed in Budget 2026?

Budget 2026 did not propose another change to individual income-tax rates for Tax Year 2026-27. The current new-regime slabs are Nil up to Rs. 4 lakh, followed by 5%, 10%, 15%, 20%, 25% and 30%, with the 30% rate applying above Rs. 24 lakh.

What are the existing income tax slabs under the new tax regime?

For Tax Year 2026-27, the new regime taxes income at Nil up to Rs. 4 lakh, 5% from Rs. 4 lakh to Rs. 8 lakh, 10% from Rs. 8 lakh to Rs. 12 lakh, 15% from Rs. 12 lakh to Rs. 16 lakh, 20% from Rs. 16 lakh to Rs. 20 lakh, 25% from Rs. 20 lakh to Rs. 24 lakh and 30% above Rs. 24 lakh.

What is the standard deduction for salaried individuals in FY 2026-27?

For the current Tax Year 2026-27, the standard deduction is Rs. 75,000 under the new regime and Rs. 50,000 under the old regime. The deduction is available against salary income subject to the applicable provisions.

What is the rebate under Section 87A?

For Tax Year 2026-27, an eligible resident individual using the new regime can receive a Section 87A rebate of up to Rs. 60,000 when total income does not exceed Rs. 12 lakh. The rebate cannot exceed the income tax payable under the applicable new-regime slab rates and does not apply to tax on specified special-rate income.

Show More Show Less

Related videos

Bajaj Finance app for all your financial needs and goals

Trusted by 50 million+ customers in India, Bajaj Finance App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finance App to:

  • Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.
  • Invest in fixed deposits and mutual funds on the app.
  • Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.
  • Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.
  • Apply for Insta EMI Card and get a pre-qualified limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on Easy EMIs.
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
  • Use specialised tools like EMI calculators, SIP Calculators
  • Check your credit score, download loan statements and even get quick customer support—all on the app.

Download the Bajaj Finance App today and experience the convenience of managing your finances on one app.

Do more with the Bajaj Finance App!

UPI, Wallet, Loans, Investments, Cards, Shopping and more

GET THE APP