DoubleTaxationTaxes on salary: India
How much tax and social security is paid on a salary in India, what is left as take-home pay, and which special tax regimes exist.
Calculation for a gross salary of €60,000 per year
| Gross salary | ₹63,43,140 ≈ €60,000 |
|---|---|
| Income tax | |
| Income-tax | ₹14,60,442 ≈ €13,814 |
| Surcharge | ₹1,46,044 ≈ €1,381 |
| Health and Education Cess | ₹64,259 ≈ €608 |
| Employee contributions | |
| Employees' Provident Fund (employee) | ₹29,360 ≈ €278 |
| Take-home pay | ₹46,43,034 ≈ €43,919 |
| Employer contributions and payroll taxes | |
| Employees' Provident Fund (employer) | ₹8,979 ≈ €85 |
| Employees' Pension Scheme | ₹20,381 ≈ €193 |
| Employees' Deposit Linked Insurance Scheme | ₹1,223 ≈ €12 |
| Employer's labour cost | ₹63,73,723 ≈ €60,289 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
This country is not covered by OECD Taxing Wages; the calculation is ours, using the same methodology.
Special tax regimes
These regimes are not included in the calculation above: each has its own conditions.
Optional (old) tax regime — opting out of section 202
Who: Individuals who opt out of s. 202 (those with business income face limits on switching back).
Rates 0% to INR 2.5 lakh, 5% to 5 lakh, 20% to 10 lakh, 30% above; standard deduction INR 50,000, rebate up to INR 12,500 for income up to 5 lakh; investment, insurance and housing deductions available; surcharge up to 37% above 5 crore.
Presumptive taxation of business — section 58, Table Sl. No. 1 (former s. 44AD)
Who: Resident individuals, HUFs and firms (not LLPs) with turnover up to INR 2 crore (3 crore if cash receipts are 5% or less); not for specified professions, commission or agency business.
Profit deemed at 6% of digital and 8% of other turnover (or actual, if higher), no books required; ordinary rates then apply.
Legal basis: Income-tax Act, 2025, s. 58(2) Table Sl. No. 1, s. 58(7)–(8), (11)(a); s. 408(2)
Presumptive taxation of professions — section 58, Table Sl. No. 3 (former s. 44ADA)
Who: Resident individuals and firms (not LLPs) in specified professions (legal, medical, engineering, architecture, accountancy, technical consultancy, etc.) with gross receipts up to INR 50 lakh (75 lakh if cash is 5% or less).
Profit deemed at 50% of gross receipts (or actual, if higher); ordinary s. 202 or old-regime rates then apply.
Legal basis: Income-tax Act, 2025, s. 58(2) Table Sl. No. 3, s. 58(3), s. 58(11)(b), s. 62(4); s. 408(2)
Resident but not ordinarily resident (RNOR)
Who: Residents who were non-resident in 9 of the 10 preceding tax years or in India 729 days or less in the 7 preceding years; also certain citizens/PIOs with income over INR 15 lakh (120–181 days) and deemed-resident citizens.
Taxed on income received or accruing in India; foreign income only if from a business controlled from or a profession set up in India; typically 2–3 years for newcomers.
Legal basis: Income-tax Act, 2025, s. 6(13), s. 6(7), s. 263(1)(a)
Tax residence
Your status in relation to this country is determined by the check on the home page.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Tax year 2026-27 (1 Apr 2026–31 Mar 2027) under the Income-tax Act, 2025, which replaced the 1961 Act from 1 April 2026; default new regime under s. 202.
- India is not in OECD Taxing Wages: mandatory EPFO contributions (EPF, EPS, EDLI) included. Employee is an EPF member; contributions only up to the statutory wage ceiling: INR 15,000/month to 16 Sep 2026, INR 25,000/month from 17 Sep 2026 (September pro rata by days). Contributions above the ceiling are voluntary and excluded.
- Basic wage (basic + DA) at least the ceiling — under the Code on Wages it must be at least 50% of remuneration, so contributions are at the ceiling for our profiles.
- No professional tax in Delhi. EPFO administrative charges (0.5%) excluded as a service fee, not a contribution.
- Local taxes — location: New Delhi
- Tax period: 2026-04-01 – 2027-03-31
- Exchange rate: 1 EUR = 105.719 INR (ECB euro foreign exchange reference rate, 02/01/2026)
Sources
- Income-tax Act, 2025, s. 202(1) — slabs 4/8/12/16/20/24 lakh (Indian Kanoon text)
- Income-tax Act, 2025, s. 19(1) Table Sl. No. 2 — standard deduction 75 000 (s. 202) / 50 000
- Income-tax Act, 2025, s. 156(2), (3) — rebate up to 60 000 for income up to 12 lakh, marginal relief
- Finance Act, 2026 (No. 4 of 2026, 30.03.2026), s. 3 — rates for tax year 2026-27 under the Income-tax Act, 2025; s. 3(4) Table Sl. No. 10 surcharge 10/15/25 %; s. 3(5) marginal relief; s. 3(15) Health and Education Cess 4 %
- Budget Speech 2026-27, para. 99: Income Tax Act, 2025 comes into effect from 1 April 2026
- EPF wage ceiling INR 25 000 from 17.09.2026 (S.O. 5109(E)); EPF 12 %, EPS 8.33 %, EDLI 0.5 %
- BDO India alert, 21.09.2026 — EPF wage ceiling revised to INR 25 000 (S.O. 5109(E), 17.09.2026)
- Lakshmikumaran & Sridharan — Professional Tax is not levied in the NCT of Delhi
Data checked: 01/11/2026. An indicative calculation for a typical case. Not tax advice.