Is ₹12 lakh income tax-free under the new tax regime?
On a ₹12,00,000 gross income, tax payable under the new regime is ₹0 after the standard deduction and Section 87A rebate — effectively tax-free.
Old vs new tax regime — FY 2025-26 / FY 2026-27
The new regime (default since FY 2023-24) uses wider slabs, a ₹75,000 standard deduction, and a rebate that makes taxable income up to ₹12 lakh tax-free, but does not allow 80C/80D deductions. The old regime allows those deductions but has narrower slabs. Budget 2026 made no changes to either regime’s rates. This calculator ignores surcharge, which only applies above ₹50 lakh income.