New vs old regime, monthly TDS, and the deductions you would need for the old regime to win.
Which regime is better on 12 lakh?
The old regime only becomes cheaper if your deductions (80C, 80D, HRA, home loan interest and others, excluding the standard deduction) exceed ₹6,50,000. Below that, choose the new regime.
With typical deductions of ₹1.75 lakh, the new regime saves you ₹1,11,800 a year.
How the new-regime tax is calculated
Taxable income = ₹12,00,000 − ₹75,000 standard deduction = ₹11,25,000. Since this is within ₹12 lakh, the full tax is cancelled by the section 87A rebate (up to ₹60,000).
Plan your take-home pay with the salary calculator, or see in-hand salary by CTC.
Tax on nearby salaries
Estimates for resident individuals below 60 with salary income for FY 2025-26 (AY 2026-27). Excludes capital gains and other special-rate income. Consult a tax professional before filing.
Frequently asked questions
How much tax do I pay on a 12 lakh salary?
Under the new regime for FY 2025-26, tax on a ₹12,00,000 salary is ₹0 including cess. Under the old regime it is ₹1,63,800 with only the standard deduction, or ₹1,11,800 with ₹1.75 lakh of 80C and 80D deductions.
Is 12 lakh salary tax-free in the new regime?
Yes. After the ₹75,000 standard deduction, taxable income is ₹11,25,000, which is within ₹12 lakh, so the section 87A rebate makes the tax zero.
Should I choose the old or new regime on 12 lakh?
Choose the old regime only if your total deductions exceed ₹6,50,000; otherwise the new regime is better.