Income Tax on ₹12 LPA — Is It Really Zero Under New Regime?
At ₹12 LPA, income tax under new regime is zero due to Section 87A rebate. See full breakdown.
✓ New Regime saves you more
₹1,11,800
per year · ₹9,317 more every month
Switch to
New Regime
Income Details
Salary / business income before deductions
FY 2025-26 Tax Comparison
Monthly In-Hand Salary
New Regime
₹1,00,000
/month
Old Regime
₹90,683
/month
₹9,317 more per month with New Regime
✓ Winner
New Tax Regime
₹75K std. deduction · no other deductions
Total Tax
₹0
0% effective rate
Old Tax Regime
HRA + 80C + 80D + NPS + 24b
Total Tax
₹1,11,800
9.3% effective rate
Tax Comparison
New Regime Rate
0%
Old Regime Rate
9.3%
Income Tax on ₹12 LPA — New vs Old Regime FY 2025–26
At ₹12 LPA, your effective tax rate is around 8–9% under the new regime. Annual tax is approximately ₹83,200 after the ₹75,000 standard deduction.
Which Regime to Choose at ₹12 LPA?
Old regime only beats new regime if you claim HRA, 80C (₹1.5L), NPS (₹50K), and 80D together.
Standard Deduction Impact
The ₹75,000 standard deduction (FY 2025–26) reduces your taxable income to ₹11.25L under the new regime. This is automatically applied — no declaration or proof of investment needed. It replaced the earlier ₹50,000 standard deduction from FY 2024–25 onwards.
New Regime Tax Slabs (FY 2025–26)
- Up to ₹4 lakh — Nil
- ₹4L–₹8L — 5%
- ₹8L–₹12L — 10%
- ₹12L–₹16L — 15%
- ₹16L–₹20L — 20%
- ₹20L–₹24L — 25%
- Above ₹24L — 30%