Income Tax on ₹12 Lakh Salary in FY 2026-27
New regime: ₹0 tax — ₹12L gross means ₹11.25L taxable, inside the rebate line. Old regime with 80C + 80D: ₹1,11,800. Salaried zero-tax ceiling is actually ₹12.75L gross.
rebate u/s 156 applies • zero monthly TDS • resident individual under 60
Step-by-step calculation (new regime)
| Step | Amount |
|---|---|
| Gross salary | ₹12,00,000 |
| − Standard deduction (salaried) | ₹75,000 |
| Taxable income | ₹11,25,000 |
| ₹0–4L @ nil | ₹0 |
| ₹4–8L @ 5% | ₹20,000 |
| ₹8–11.25L @ 10% | ₹32,500 |
| Tax before rebate | ₹52,500 |
| − Rebate u/s 156 (income ≤ ₹12L) | ₹52,500 |
| Total tax | ₹0 |
Monthly TDS and in-hand salary
| Component (monthly) | Amount |
|---|---|
| Gross salary (₹12L ÷ 12) | ₹1,00,000 |
| − TDS (tax is zero) | ₹0 |
| − Employee PF (approx) | ≈ ₹6,000 |
| − Professional tax | ₹200 |
| In-hand salary (approx) | ≈ ₹94,000 |
New vs old regime — which wins at ₹12L?
| Regime | Taxable income | Total tax |
|---|---|---|
| New (₹75k std ded only) | ₹11,25,000 | ₹0 |
| Old (₹50k std ded + ₹1.5L 80C + ₹25k 80D) | ₹9,75,000 | ₹1,11,800 |
Tax on other salaries
₹10 lakh salary → ₹0 · ₹15 lakh → ₹97,500 · ₹20 lakh → ₹1,92,400 · ₹50 lakh → ₹10,99,800. Or calculate your exact salary →
By TaxSetu Editorial Team · Last reviewed: 7 October 2026
Based on the Income-tax Act 2025, Income Tax Rules 2026 and CBDT notifications; sections per the Income-tax Act 1961 (as amended) with 2025-Act mappings where notified · Verify on the official portal: incometax.gov.in
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Frequently Asked Questions
Yes, in the new regime. ₹12,00,000 minus the ₹75,000 standard deduction = ₹11,25,000 taxable, inside the ₹12L rebate line — so the Section 156 (old 87A) rebate makes tax exactly zero.
Yes — salaried residents in the new regime: Rs 12.75L minus the Rs 75,000 standard deduction lands exactly on the Rs 12L rebate line, so tax is zero.
Approximately ₹94,000: ₹1,00,000 gross minus ~₹6,000 PF and ₹200 professional tax, with zero TDS.
New regime, decisively — ₹0 vs ~₹1,11,800 in the old regime even with 80C + 80D deductions. No deduction stack can beat a zero.