Enter total salary before any deductions.
Old Regime Deductions (not applicable in new regime)
Max ₹1.5 lakh
Income Tax on ₹12 LPA — FY 2025-26
Under the new tax regime for FY 2025-26, the Section 87A rebate provides zero tax for taxable income up to ₹12 lakh. After the ₹75,000 standard deduction, ₹12 LPA gives taxable income of ₹11.25L — within the rebate limit.
₹12 LPA is the sweet spot — exactly at the zero-tax threshold under new regime. Old regime requires ₹1.75L+ deductions to match this.
Tax Calculation on ₹12 LPA
Old regime: ₹12L − ₹50K std = ₹11.5L taxable → tax ₹1,57,500 + cess = ₹1,63,800. New regime saves ₹1.6L+.
Example Calculation
Frequently Asked Questions
Yes — under the new tax regime for FY 2025-26, ₹12 LPA is effectively tax-free. After the ₹75,000 standard deduction, taxable income is ₹11.25L, which is within the Section 87A rebate limit of ₹12 lakh.
New regime is clearly better for ₹12 LPA — zero tax vs ₹1,21,680+ under old regime even with maximum deductions. There is no scenario at ₹12 LPA where old regime saves more than new regime.
For ₹12 LPA with 40% basic under new regime (zero tax), monthly in-hand is approximately ₹82,000–88,000. Use our Salary In-Hand Calculator for exact breakdown.
Related Calculators
Disclaimer: Results are for informational and educational purposes only — not financial, tax, or legal advice. Tax slabs, rates (EPF, PPF, home loan), and rules shown are based on data available in 2025 and may change. Always verify with a qualified professional or official government sources before making financial decisions.