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  5. Nagpur
Tax

Income Tax New Regime Calculator — Nagpur FY 2025-26

For a Nagpur (Maharashtra) professional earning Rs 5.0L annually, the new regime yields a tax of approximately Rs 0.00L (effective rate 0.0%) after the Rs 75,000 standard deduction and full Section 87A rebate — meaning zero tax liability. Both regimes are approximately equal at this salary level.

Verified Formula|Source: Income Tax Department, Government of India|Last verified: April 2026Methodology

Your Income Details

Max Rs 75,000 for salaried / pensioners under new regime (FY 2025-26).

Additional Rs 50,000 deduction for NPS contributions (employer contribution under new regime).

Related Calculators

Old Regime Tax CalculatorOld vs New Regime ComparisonHRA Exemption Calculator
Taxable Income

₹11,25,000

Total Tax

₹0

Effective Rate

0.00%

Monthly Tax

₹0

Slab-wise Tax Breakdown — New Regime FY 2025-26

Income SlabRateIncome in SlabTax
₹0 – ₹4,00,0000%₹4,00,000₹0
₹4,00,000 – ₹8,00,0005%₹4,00,000₹20,000
₹8,00,000 – ₹12,00,00010%₹3,25,000₹32,500
₹12,00,000 – ₹16,00,00015%₹0₹0
₹16,00,000 – ₹20,00,00020%₹0₹0
₹20,00,000 – ₹24,00,00025%₹0₹0
₹24,00,000 – Above30%₹0₹0

Detailed Tax Computation

Gross Annual Income₹12,00,000
Less: Standard Deduction- ₹75,000

Taxable Income₹11,25,000
Tax on Taxable Income₹52,500
Less: Rebate u/s 87A- ₹52,500
Tax after Rebate₹0
Add: Health & Education Cess (4%)₹0

Total Tax Liability₹0

Section 87A Rebate Applied

Your taxable income is below Rs 12,00,000, so you qualify for a rebate of up to Rs 60,000 under Section 87A. This effectively makes your tax liability zero (or reduced) under the new regime.

New Regime Income Tax for Nagpur Professionals — FY 2025-26

The new tax regime — redesigned in the Union Budget 2023 and made the default from FY 2023-24 — offers a simplified seven-slab structure with a higher Rs 75,000 standard deduction for salaried employees. For Nagpur (Maharashtra) professionals, the key question is whether the new regime's lower slab rates outweigh the deductions sacrificed by abandoning the old regime. With an average salary of Rs 5.0L in Nagpur — driven by employers like TCS, Infosys, Persistent Systems — the new regime tax is approximately Rs 0.00L, an effective rate of 0.0%. Nagpur pays Maharashtra's full Rs 2,500/year professional tax despite being India's geographical center with significantly lower salaries than Mumbai or Pune — making it one of the highest PT burden cities relative to income. MIHAN SEZ (Multi-modal International Cargo Hub and Airport at Nagpur) is expected to create 30,000+ direct jobs by 2026, positioning Nagpur as one of India's fastest-growing Tier-2 real estate markets.

New Regime Tax Slabs (FY 2025-26) Applied to Nagpur's Average Salary

After the Rs 75,000 standard deduction, the taxable income on Rs 5.0L salary in Nagpuris Rs 4,25,000. Applying the seven-slab new regime structure:

  • Rs 0 – Rs 4,00,000: 0% — Rs 0 tax
  • Rs 4,00,001 – Rs 8,00,000: 5% — up to Rs 1,250 tax on this slab
  • Rs 8,00,001 – Rs 12,00,000: 10% — up to Rs 0 tax on this slab
  • Rs 12,00,001 – Rs 16,00,000: 15% — up to Rs 0 tax on this slab
  • Rs 16,00,001 – Rs 20,00,000: 20% — up to Rs 0 tax on this slab
  • Rs 20,00,001 – Rs 24,00,000: 25% — up to Rs 0 tax on this slab
  • Above Rs 24,00,000: 30% — Rs 0 on this slab

Total base tax: Rs 1,250. Section 87A rebate of Rs 1,250 wipes out the entire tax — final liability is Rs 0 (plus Rs 0 cess). Your income of Rs 5.0L is effectively tax-free under the new regime!

The Rs 12.75 Lakh Tax-Free Threshold in Nagpur

One of the most powerful features of the new regime for FY 2025-26 is the effective zero-tax threshold of Rs 12.75 lakh gross income. This works as follows: Rs 12,75,000 income − Rs 75,000 standard deduction = Rs 12,00,000 taxable income. Tax on Rs 12L (new slabs): Rs 0 + Rs 20,000 + Rs 40,000 = Rs 60,000. Section 87A rebate: Rs 60,000. Net tax: Rs 0. Cess: Rs 0. Any Nagpur employee with gross salary at or below Rs 12,75,000/year pays zero income tax under the new regime. For entry and mid-level professionals at MIHAN SEZ and Maharashtra Government in Nagpur, this is a meaningful benefit.

What the New Regime Ignores: Deductions Nagpur Professionals Lose

The new regime disallows many deductions that significantly reduce old regime taxable income for Nagpur professionals:

  • HRA exemption: With Nagpur 2BHK rents at Rs 10,000/month in areas like Dharampeth and Civil Lines, the annual HRA exempt under the old regime is Rs 80,000 — lost entirely in the new regime.
  • Section 80C deductions: Rs 1,50,000 of EPF, PPF, ELSS, insurance — not available.
  • Section 80D health insurance: Rs 25,000–Rs 75,000 for premiums at Orange City Hospital (Nagpur) network — not available.
  • Home loan interest 24(b): Up to Rs 2,00,000 on self-occupied property — not available.
  • Professional tax deduction 16(iii): Rs 2,500/year — not available.
  • NPS 80CCD(1B): Rs 50,000 self-contribution — not available.

What remains in the new regime: Standard deduction Rs 75,000, employer NPS contribution under Section 80CCD(2) (up to 10% of salary — available even in new regime), and Section 10(14) exemptions for specific allowances. If your Nagpur employer offers NPS contribution, this alone can reduce taxable income by Rs 1-2L even in the new regime.

New Regime vs Old Regime: The Nagpur Verdict

At the Nagpur average salary of Rs 5.0L, the new regime tax is Rs 0.00L and the old regime tax (with full deductions) is approximately Rs 0.00L. The old regime saves Rs 0.00L per year at this salary with full deductions. Nagpur renters who pay Rs 10,000/month, max out 80C and 80D, and contribute to NPS will generally benefit more from the old regime. Use the Old vs New Regime comparison tool to model your specific deduction profile.

Employer NPS: The Only Significant New Regime Deduction in Nagpur

Section 80CCD(2) — employer NPS contribution — is the one major deduction that survives in the new regime. For private sector employees in Nagpur, employers can contribute up to 10% of (basic + DA) to NPS, and this entire contribution is deductible from taxable income in the new regime. At a Nagpur basic salary of Rs 16,667/month, a 10% employer NPS contribution is Rs 1,667/month or Rs 20,000/year — a meaningful deduction for Nagpur employees at firms like TCS or Infosys that offer NPS.

Salary Growth and Future Tax Planning in Nagpur

Nagpur's dominant Government sector sees average salary increments of 9% annually. At this growth rate, a professional currently earning Rs 5.0L will earn approximately Rs 5.5L next year. This income jump may push taxable income into a higher new regime slab (e.g., from the 15% to the 20% bracket). Proactively modeling future-year tax with both regimes — especially if you plan to take a home loan in Nagpur — can save significant amounts over a 3-5 year horizon. Nagpur's MIHAN SEZ and metro rail project are driving real estate transformation — stamp duty is lower than Mumbai/Pune, making property investment calculations critical here.

Disclaimer

Tax computations are estimates for Indian resident individual taxpayers for FY 2025-26 (AY 2026-27). Surcharge applies for income above Rs 50 lakh. City salary data is indicative. New regime is the default from FY 2023-24; opt-out must be declared to your employer via Form 12BB or equivalent. Consult a Chartered Accountant in Nagpur before finalising your regime choice.

Frequently Asked Questions — New Regime Tax in Nagpur

Is income up to Rs 12 lakh really tax-free under the new regime in Nagpur?

Yes — effectively, but only for salaried employees. Gross salary up to Rs 12,75,000 is tax-free because: standard deduction (Rs 75,000) reduces taxable income to Rs 12,00,000; tax on Rs 12L under new slabs is Rs 60,000; Section 87A rebate of Rs 60,000 nullifies this completely. So the actual zero-tax limit for Nagpur salaried professionals is Rs 12,75,000 — not just Rs 12L. Non-salaried taxpayers in Nagpur (without the Rs 75K standard deduction) face zero-tax only up to Rs 12L gross income.

Can I claim HRA if I choose the new regime in Nagpur?

No. HRA exemption under Section 10(13A) is not available in the new tax regime. This is a significant cost for Nagpur renters paying Rs 10,000/month. Under the old regime, HRA exempt would be approximately Rs 80,000/year — this entire amount becomes taxable in the new regime. If your annual rent is Rs 1,20,000 and your HRA exempt is Rs 80,000, you lose a tax saving of approximately Rs 4,160 by switching to the new regime.

How does the new regime treat professional tax in Nagpur?

Under the new tax regime, professional tax of Rs 2,500/year (levied by Maharashtra) is NOT deductible. The Section 16(iii) deduction is only available under the old regime. So Nagpur employees choosing the new regime still pay Rs 2,500/year PT from their salary, but cannot reduce their income tax base by this amount. This is a hidden cost of the new regime for Maharashtra residents.

What is the break-even deduction amount for choosing old vs new regime in Nagpur?

The break-even depends on your specific tax slab. At the Nagpur average salary of Rs 5.0L, the new regime tax is Rs 0.00L. For the old regime to match this, you need deductions (beyond the Rs 75K standard deduction) of approximately Rs 0.0L to equalise the two regimes. If your actual deductions — HRA Rs 80,000 + 80C Rs 1.5L + 80D Rs 25K + NPS Rs 50K = Rs 3,05,000 — exceed this break-even, the old regime saves more. Use the Old vs New Regime calculator for your exact numbers.

Nagpur's income tax new regime calculation operates under Maharashtra's Rs 2,500/year professional tax — identical to Mumbai and Pune — while navigating the city's dual industrial identity as a BHEL Power Sector (Heavy Electricals Plant) industrial township alongside MIHAN SEZ's emerging IT and logistics sector. Nagpur is classified as a non-metro city for HRA purposes (40% of basic), unlike metro-classified Mumbai. The new regime (FY2024-25): 0-3L nil, 3-7L 5%, 7-10L 10%, 10-12L 15%, 12-15L 20%, above 15L 30%, Rs 75,000 standard deduction. Maharashtra PT at Rs 2,500: deductible under Section 16(iii) in old regime, but the new regime's higher standard deduction (Rs 75K vs Rs 50K + PT Rs 2,500 = Rs 52,500) means new regime provides Rs 22,500 more in base salary deductions — the same PT-versus-SD calculation seen in Pune and Mumbai. BHEL Nagpur's private trust EPF structure creates high 80C utilization from trust EPF alone at senior grades, while the NPS 80CCD(1B) Rs 50,000 additional deduction becomes the critical tipping factor between regimes. MIHAN SEZ's IT and aviation MRO (Maintenance, Repair & Overhaul) workforce at Rs 8-15L CTC with moderate Nagpur rents (Rs 8,000-18,000/month in Dharampeth, MIHAN, and Wardha Road localities) often falls just below the old regime deduction breakeven, making new regime competitive for the MIHAN cohort while BHEL senior engineers with home loans and comprehensive insurance clearly benefit from old regime.

Key Insight — Nagpur

Nagpur's defining new regime insight is the BHEL grade stratification — where Hindustan Electro Graphites/BHEL Power Sector employees at different PSU salary grades face radically different regime outcomes based on whether their trust EPF contribution crosses the threshold where personal 80C is fully satisfied without additional PPF or ELSS investment. At BHEL's junior grades (Grade B-D, Rs 8-14L CTC): trust EPF employee share Rs 48,000-72,000/year → remaining 80C space: Rs 78,000-1,02,000 (filled by PPF or insurance). HRA at Nagpur's moderate rents: Rs 70,000-1.1L. Total deductions: Rs 2.5-3.2L. Consistently below Rs 3.75L without NPS — new regime wins for junior BHEL by Rs 5,000-20,000. At BHEL senior grades (Grade E-G, Rs 15-25L CTC): trust EPF employee share Rs 90,000-1,08,000/year → fills 80C almost completely alongside insurance premiums. NPS 80CCD(1B) Rs 50,000 becomes the crucial beyond-ceiling deduction. HRA at Rs 16-20K rent: Rs 1.1-1.5L. 80D Rs 75K (family comprehensive). Total deductions: Rs 3.5-4.5L. Old regime wins by Rs 5,000-45,000 for Grade E+ with NPS. The turning point for Nagpur BHEL employees is precisely the Grade E promotion: at Grade D → new regime; at Grade E with NPS → old regime. Home loan Section 24b Rs 2L makes the case for old regime overwhelming at any grade above Grade D. MIHAN SEZ IT professionals represent a separate population: moderate CTCs (Rs 10-15L), no trust EPF complexity (EPFO ceiling), and MIHAN's slightly elevated rents (Rs 12-20K/month) produce HRA Rs 90K-1.3L → total deductions Rs 2.7-3.5L → new regime wins for most MIHAN IT professionals without home loans.

Nagpur's Financial Context and New Regime Tax Calculator

Maharashtra PT: Rs 2,500/year. Nagpur NON-METRO HRA: 40% of basic. Rent 2BHK: Dharampeth Rs 10-18K, Wardha Road Rs 8-15K, MIHAN Rs 12-20K, Ramdaspeth Rs 12-22K. New regime: 0-3L nil, 3-7L 5%, 7-10L 10%, 10-12L 15%, 12-15L 20%, 15L+ 30%. SD Rs 75K (salaried only). 87A: ≤ Rs 7L = zero tax. PT old regime Section 16(iii): Rs 2,500. Old SD + PT: Rs 52,500. New regime SD Rs 75K. New regime base advantage: Rs 22,500. BHEL Nagpur Grade D (Rs 12L CTC): trust EPF employee 12% of basic ~Rs 60K/year → 80C from EPF Rs 60K + PPF Rs 90K = Rs 1.5L. HRA Rs 12K rent: Rs 94K. 80D Rs 25K. Total deductions Rs 2.69L → new regime wins. BHEL Grade F (Rs 20L): trust EPF Rs 1.08L → 80C full from EPF + insurance. HRA Rs 16K: Rs 1.17L. 80D Rs 75K. NPS Rs 50K. Total Rs 3.8L → old regime wins. MIHAN SEZ IT (Rs 10-14L): HRA Rs 80-90K + deductions → typically below Rs 3.75L → new regime wins. Maharashtra PT impact at 30% slab: Rs 750/year savings — negligible relative to the Rs 3.75L breakeven calculation.

BHEL Nagpur Trust EPF Grades — New Regime for Juniors, Old Regime for Senior Engineers

BHEL Nagpur's Heavy Electricals Plant (Butibori) employs 5,000+ engineers and technical staff across salary grades. Trust EPF applies actual rates on actual basic — creating grade-dependent 80C consumption. Grade D BHEL engineer at Rs 12L CTC (basic Rs 5L): trust EPF 12% = Rs 60,000/year. 80C: Rs 60K EPF + Rs 90K PPF = Rs 1.5L. HRA at Rs 12K rent (Wardha Road): min(Rs 2L, Rs 1.44L - Rs 50K = Rs 94K, Rs 2L) = Rs 94,000. 80D Rs 25K (self). Deductions: Rs 94K + Rs 1.5L + Rs 25K = Rs 2.69L. Old regime taxable: Rs 12L - Rs 52,500 (SD+PT) - Rs 2.69L = Rs 8.56L. Tax: Rs 12,500 + Rs 71,200 = Rs 83,700 + cess = Rs 87,048. New regime: Rs 11.25L → Rs 71,500. New regime wins by Rs 15,548. Grade E BHEL engineer at Rs 20L CTC (basic Rs 8.33L): trust EPF 12% = Rs 1,00,000/year → 80C from EPF Rs 1L + insurance Rs 50K = Rs 1.5L (fully utilized). NPS 80CCD(1B) Rs 50K. HRA at Rs 18K rent: min(Rs 3.33L at 40%, Rs 2.16L - Rs 83,300 = Rs 1.327L, Rs 3.33L) = Rs 1.327L. 80D Rs 75K (self + senior parents). Deductions: Rs 1.327L + Rs 1.5L + Rs 75K + Rs 50K = Rs 4.077L. Old regime taxable: Rs 20L - Rs 52,500 - Rs 4.077L = Rs 15.37L. Tax: Rs 12,500 + Rs 1,00,000 + Rs 1,61,100 = Rs 2,73,600 + cess = Rs 2,84,544. New regime: Rs 19.25L → Rs 20K + Rs 30K + Rs 30K + Rs 60K + Rs 1,27,500 = Rs 2,67,500 + cess = Rs 2,78,200. Old regime wins by Rs 6,344. The grade boundary is clear: Grade D → new regime. Grade E with full deduction package → old regime. Grade E without NPS or parents' insurance → new regime (deductions fall to Rs 3.077L, below breakeven).

MIHAN SEZ IT and MRO — New Regime for Moderate-CTC Aviation and IT Workforce

MIHAN-SEZ (Multi-modal International Cargo Hub and Airport at Nagpur) represents Nagpur's growth corridor for IT, aviation MRO, logistics, and FMCG distribution. Companies including Infosys BPO, Hexaware, WNS, and IndiGo MRO employ 15,000+ professionals at Rs 6-18L CTC. MIHAN rents are moderate-to-high for Nagpur (Rs 12-20K/month, slightly elevated due to proximity to airport and SEZ infrastructure). MIHAN IT professional at Rs 12L CTC (basic Rs 5L), rent Rs 15,000/month: HRA = min(Rs 2L, Rs 1.8L - Rs 50K = Rs 1.3L, Rs 2L) = Rs 1.3L. EPFO ceiling EPF Rs 21,600/year (no trust, MIHAN IT companies follow EPFO). Remaining 80C: Rs 1.5L - Rs 21,600 = Rs 1.28L (PPF or insurance). Total 80C: Rs 1.5L. 80D Rs 25K. Deductions: Rs 1.3L + Rs 1.5L + Rs 25K = Rs 3.05L → below Rs 3.75L → new regime wins. Add NPS Rs 50K: Rs 3.55L → still below → new regime wins. Add parents' 80D Rs 50K (total 80D Rs 75K): Rs 3.8L → old regime wins by Rs 2,000. The MIHAN calculation: NPS Rs 50K + comprehensive 80D Rs 75K together push past the breakeven. Without both: new regime. WNS Nagpur at Rs 8L CTC: 87A zone consideration — new regime taxable Rs 7.25L exceeds Rs 7L threshold. Old regime with deductions may reduce taxable to ≤ Rs 5L for 87A. At Rs 8L CTC: old regime 87A Rs 5L rebate could produce lower effective tax than new regime. Calculate specifically for Rs 8L profiles. IndiGo MRO Nagpur aviation engineers at Rs 10-15L: standard MIHAN analysis — deduction-dependent, NPS is the tipping factor.

More Questions — New Regime Tax Calculator in Nagpur

I'm a BHEL Nagpur Grade E engineer (Rs 18L CTC, trust EPF fully fills my 80C, NPS Rs 50K, health insurance Rs 75K for family including parents, rent Rs 16K Dharampeth). Old or new?

Old regime wins for you — saves approximately Rs 10,000-15,000/year. Your deduction calculation: basic Rs 7.5L (42% of CTC). Trust EPF 12% = Rs 90,000/year. 80C: Rs 90K EPF + Rs 60K insurance = Rs 1.5L (fully utilized). NPS 80CCD(1B) Rs 50K. 80D Rs 75K (self + family + parents at senior citizen rates). HRA = min(Rs 3L at 40%, Rs 1.92L - Rs 75K = Rs 1.17L, actual HRA) = Rs 1.17L. Old regime salary deductions: SD Rs 50K + PT Rs 2,500 + HRA Rs 1.17L + 80C Rs 1.5L + 80D Rs 75K + NPS Rs 50K = Rs 4.145L. Old regime taxable: Rs 18L - Rs 4.145L = Rs 13.855L. Tax: Rs 12,500 + Rs 1,00,000 + Rs 1,15,650 (10-13.855L at 30%) = Rs 2,28,150 + cess 4% = Rs 2,37,276. New regime: Rs 18L - Rs 75K = Rs 17.25L. Tax: Rs 20K + Rs 30K + Rs 30K + Rs 60K + Rs 45K = Rs 1,85,000 + cess = Rs 1,92,400. Old regime wins by Rs 44,876! That's much better than I initially thought — let me re-verify. Old regime taxable Rs 13.855L: nil + Rs 12,500 (2.5-5L at 5%) + Rs 1,00,000 (5-10L at 20%) + Rs 1,15,650 (10-13.855L at 30%) = Rs 2,28,150 + cess Rs 9,126 = Rs 2,37,276. New regime taxable Rs 17.25L: nil + Rs 20K + Rs 30K + Rs 30K + Rs 60K + Rs 45K = Rs 1,85,000 + cess Rs 7,400 = Rs 1,92,400. Old regime wins by Rs 44,876 — very decisive for your profile. Your combination of trust EPF saturating 80C, NPS Rs 50K (beyond ceiling), comprehensive 80D Rs 75K, and HRA Rs 1.17L has pushed total deductions to Rs 4.145L (above Rs 3.75L breakeven) — making old regime significantly better. Stay on old regime.

I'm an IT professional at Infosys MIHAN (Rs 10L CTC, EPFO ceiling EPF, no NPS, rent Rs 12K, basic 80C from EPF + PPF + insurance = Rs 1.5L, 80D Rs 25K). Which regime?

New regime saves you Rs 4,000-5,000/year — choose new regime. Calculation: basic Rs 4.17L. HRA = min(Rs 1.67L at 40%, Rs 1.44L - Rs 41,700 = Rs 1.023L, actual HRA) = Rs 1.023L. Old regime: SD Rs 50K + PT Rs 2,500 + HRA Rs 1.023L + 80C Rs 1.5L + 80D Rs 25K = Rs 3.1L total salary deductions. Old regime taxable: Rs 10L - Rs 3.1L = Rs 6.9L. Tax: Rs 12,500 + Rs 38,000 (5-6.9L at 20%) = Rs 50,500 + cess = Rs 52,520. Old regime 87A: Rs 6.9L > Rs 5L → 87A not applicable. New regime: Rs 10L - Rs 75K = Rs 9.25L. Tax: nil + Rs 20,000 + Rs 22,500 = Rs 42,500 + cess = Rs 44,200. New regime saves Rs 8,320/year. Now let me reconsider — should you add NPS? If you add NPS Rs 50K to old regime: deductions increase to Rs 3.55L → taxable Rs 6.45L → tax Rs 12,500 + Rs 29,000 = Rs 41,500 + cess = Rs 43,160. New regime Rs 44,200 → old regime with NPS wins by Rs 1,040! NPS is the tipping point for you — exactly as in many non-metro cities with moderate rents. Decision tree: Start NPS Rs 50K AND choose old regime — saves Rs 1,040 in tax AND builds retirement corpus. If you don't want NPS commitment: choose new regime, save Rs 8,320/year but miss retirement savings. Recommendation: NPS + old regime is better long-term. The Rs 50K NPS investment earns market returns (historically 10-12% for equity allocation) while saving Rs 1,040 in tax. Don't leave the NPS benefit on the table at this CTC level.

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