New Delhi, July 8 -- An annual salary of Rs.60 lakh requires one additional step in tax calculation under the new tax regime compared to lower income levels. In addition to applying slab-wise tax rates, taxpayers must also account for a 10% surcharge, which applies once taxable income exceeds Rs.50 lakh.

Here is a step-by-step breakdown of how the tax is calculated.

Before calculating tax, salaried individuals can claim a standard deduction of Rs.75,000 under the new tax regime. As a result, although the employee earns Rs.60 lakh, tax is calculated only on Rs.59.25 lakh.

After deducting the standard deduction, the taxable income is Rs.59.25 lakh.

Under the new tax regime, income is taxed progressively across different slabs. In this c...