Salary tax planning · ₹12 lakh · FY 2025-26
Tax planning for a ₹12 lakh salary
On a ₹12 lakh salary, a salaried taxpayer pays no income tax under the new regime for FY 2025-26 — your taxable income after the ₹75,000 standard deduction is ₹11,25,000, under the ₹12 lakh rebate ceiling. Here is how the old regime compares and which deductions still matter.
Your tax at a glance
New regime
₹0
After ₹75,000 standard deduction
Old regime (full deductions)
₹59,800
With ₹4,25,000 of deductions
Cheaper for you
New regime
Lower tax: ₹0
₹12 lakh salary: old vs new, side by side
| Scenario | Taxable income | Tax (incl. 4% cess) |
|---|---|---|
| New regime (₹75k standard deduction) | ₹11,25,000 | ₹0 |
| Old regime — 80C only (₹1.5L) | ₹10,00,000 | ₹1,17,000 |
| Old regime — full stack (₹4.25L) | ₹7,25,000 | ₹59,800 |
Your break-even
Which regime should you pick?
At ₹12 lakh, the new regime brings your tax to zero — hard to beat. The old regime can only match it if you claim at least about ₹6,50,000 in deductions, which means locking up cash you do not strictly need to. Unless you already have a home loan and a full 80C/NPS/80D stack for other reasons, the new regime is the simpler and cheaper choice at this salary.
Deductions a ₹12 lakh earner should not miss
- Section 80C (₹1.5 lakh) and 80CCD(1B) (₹50,000 NPS) used in full
- Section 24(b) — up to ₹2 lakh home-loan interest if you own a self-occupied home
- HRA — claimed correctly against actual rent if you rent in a metro
- Section 80D for self and senior-citizen parents
- 80CCD(2) — employer NPS contribution, deductible even under the new regime
These figures are illustrative. The exact answer depends on your real Form 16, your rent and your investments — which is what a DrishtiTax review computes for you.
Frequently asked questions
Educational information
This page is general information for salaried taxpayers in India, not legal, financial or chartered-accountancy advice. Tax outcomes depend on your full, individual circumstances. Figures use FY 2025-26 (AY 2026-27) rules and may change. Verify against official sources or a qualified professional before acting.
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