In the list, pruned to 25 players from the previous year's 37, only five have been kept inside Grade A, under which players draw in Rs one crore per annum.
The five in the top group include skipper Mahendra Singh Dhoni, rising batsmen Virat Kohli and Suresh Raina and off-spinner R Ashwin.
Also there in the list is Sachin Tendulkar, who has been retained despite retiring at the end of his 200th Test which is currently being played in Mumbai against the West Indies.
The axing from the list of contracted players could be the beginning of the end for Sehwag, who has not played a Test since March this year, and Zaheer, out for almost a year due to fitness issues.
Opener Gautam Gambhir, who has been dropped from the team due to poor form, and all-rounder Yuvraj Singh were demoted to Grade B, which draws a fixed salary of Rs 50 lakh.
Dashing opener Shikhar Dhawan, batsman Murali Vijay, all-rounder Ravindra Jadeja and pacer Bhuvneshwar Kumar were rewarded for their good performances in the season gone by as they were promoted to Grade B from C.
Harbhajan, who is trying to make a comeback with good performances in the ongoing Ranji Trophy season, and injury-ravaged pacer Irfan Pathan are the only other players from Group B who have been altogether dropped.
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