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What is your monthly take-home salary on a ₹12 LPA CTC under the new tax regime?

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FREE TO USENO LOGIN REQUIREDUPDATED FY 2025–26
The Answer
₹1,00,000/month
tax = ₹0 under 87A rebate, new regime FY 2025–26

Calculate your exact monthly take-home salary on ₹12 lakh annual CTC under the FY 2025–26 new tax regime. With the ₹75,000 standard deduction and Section 87A rebate, tax payable is zero up to ₹12 lakh taxable income.

By Aditya GuptaAccounting & Finance EducatorLast reviewed May 31, 2026Source: Income Tax Dept

Why ₹12 LPA Take-Home Is a Critical Slab

Under FY 2025-26 (Budget 2025) new tax regime rules, a salaried individual earning ₹12 lakh per year pays zero income tax. The ₹75,000 standard deduction brings taxable income to ₹11.25 lakh, falling within the ₹12 lakh Section 87A rebate ceiling — so the calculated tax of ₹52,500 is fully refunded as rebate. Monthly take-home is the full ₹1,00,000.

This is the biggest middle-class tax change since 2020. Earlier, a ₹12 LPA earner paid roughly ₹1.6 lakh in tax under the new regime. Budget 2025 wiped that out entirely — a real annual saving of ₹1.6 lakh, or ₹13,400 a month. For households earning ₹10-15 LPA, this is the single largest disposable-income boost in recent memory.

Two practical implications. First, the old tax regime is now mathematically inferior at ₹12 LPA unless your 80C + HRA + 80D + home loan interest deductions exceed roughly ₹3.5 lakh combined. Most salaried earners can’t cross that threshold. Second, this changes household budgeting: a ₹1 lakh/month take-home is the new ₹86,600 of FY 2024-25 — a step-change worth running fresh SIP, EMI affordability, and retirement projections on.

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Take-Home Salary Calculator (New Regime)

New tax regime with ₹50,000 standard deduction. FY 2025–26 slabs.

Total Income Tax—
Annual Take-Home—
Monthly Take-Home—
Visual Breakdown
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How We Calculated This

Annual CTC: ₹12,00,000 (₹12 LPA)
New tax regime slabs (FY 2025–26)
Standard deduction: ₹75,000 (Budget 2025, new regime)
Taxable income: ₹11,25,000 → tax ₹52,500 → fully offset by Section 87A rebate
Health & Education Cess: 4% on income tax
No other deductions (80C, HRA, etc.) claimed in new regime

Related Scenarios

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Old vs New Regime at ₹15 LPA
New saves ~₹1.6 L
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Tax Saved by 80C Investment
₹46,800
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HRA Exemption at ₹8 LPA Metro
₹1.2 L/year

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Frequently Asked Questions

What are the new tax regime slabs for FY 2025–26?+
₹0–4L: Nil, ₹4–8L: 5%, ₹8–12L: 10%, ₹12–16L: 15%, ₹16–20L: 20%, ₹20–24L: 25%, above ₹24L: 30% (Budget 2025). Standard deduction: ₹75,000. Section 87A rebate applies up to ₹12 lakh taxable income.
Is the new regime better than the old for ₹12 LPA?+
At ₹12 LPA under FY 2025–26 new regime, taxable income after ₹75,000 standard deduction is ₹11.25 L — within the ₹12 L Section 87A rebate ceiling, so tax is zero. Old regime would tax around ₹1.5–1.7 L unless deductions exceed ₹3.75 L.
What is not included in this take-home estimate?+
This estimate excludes PF (12% of basic), professional tax (₹200–500/month), company-specific allowances, and medical insurance premiums. Your actual in-hand salary will differ based on your salary structure.
How can I increase my take-home on ₹12 LPA?+
Restructure salary to include tax-free components (meal coupons up to ₹26,400/year, phone/internet reimbursements, LTA). These reduce taxable income without needing the old regime.
What if I switch regimes mid-year?+
Salaried employees can switch regimes every year at filing time. If your employer deducts TDS under new regime, you can claim refund at the time of filing if old regime works better.