New vs old tax regime, FY 2025-26
The new regime wins unless your old-regime deductions cross a break-even amount that depends on your income. This table shows that exact amount for a standard salary structure — if you cannot claim more than the figure in the last column, stay on the new regime.
| CTC | New regime tax | Old regime tax (₹1.5L in 80C) | Old regime wins if deductions exceed |
|---|---|---|---|
| 6 LPA | ₹0 | ₹0 | ₹19,000 |
| 8 LPA | ₹0 | ₹25,314 | ₹2,10,000 |
| 10 LPA | ₹0 | ₹64,917 | ₹4,00,000 |
| 12 LPA | ₹0 | ₹1,04,520 | ₹5,90,000 |
| 15 LPA | ₹86,268 | ₹1,87,387 | ₹5,24,000 |
| 18 LPA | ₹1,32,829 | ₹2,76,494 | ₹6,11,000 |
| 20 LPA | ₹1,72,432 | ₹3,35,899 | ₹6,74,000 |
| 25 LPA | ₹2,87,300 | ₹4,84,411 | ₹7,82,000 |
| 30 LPA | ₹4,30,872 | ₹6,32,923 | ₹7,98,000 |
| 40 LPA | ₹7,27,896 | ₹9,29,947 | ₹7,98,000 |
| 50 LPA | ₹10,24,920 | ₹12,26,971 | ₹7,98,000 |
| 60 LPA | ₹14,54,138 | ₹16,76,395 | ₹5,74,000 |
Assumes basic = 40% of CTC, employer PF inside CTC, professional tax ₹2,400/year. "Deductions" means everything beyond the standard deduction: 80C, HRA exemption, home loan interest, 80D and the rest combined.
Run it on your exact numbers
Your CTC
12 LPA
Only affects the old regime column
Monthly in hand (new regime)
₹90,200
₹10,82,400 per year after tax, EPF and professional tax · the new regime saves you ₹1,04,520/year
New regime (FY 2025-26)lower tax
| Gross salary | ₹11,42,400 |
| Employer PF (inside CTC) | − ₹57,600 |
| Income tax + cess | ₹-0 |
| Employee PF | − ₹57,600 |
| Professional tax | − ₹2,400 |
| Monthly in hand | ₹90,200 |
Old regime
| Gross salary | ₹11,42,400 |
| Employer PF (inside CTC) | − ₹57,600 |
| Income tax + cess | − ₹1,04,520 |
| Employee PF | − ₹57,600 |
| Professional tax | − ₹2,400 |
| Monthly in hand | ₹81,490 |
Monthly in hand · new regime
₹90,200
₹10,82,400/yr
Regime questions, answered
The new regime is the default from FY 2023-24 onwards. If you do nothing, your employer deducts TDS under the new regime slabs. Salaried employees can still pick the old regime each year while filing, as long as they file on time.
Salaried taxpayers can choose either regime every financial year. Only taxpayers with business income are locked in after opting out of the new regime.
Section 80C (₹1.5L cap), HRA exemption, home loan interest under 24(b), 80D health insurance, LTA and more. The new regime keeps only the ₹75,000 standard deduction and the employer NPS contribution under 80CCD(2).
The 87A rebate makes taxable income up to ₹12 lakh tax free and the slabs above it are wider and cheaper. To beat that, old-regime deductions typically need to exceed ₹4-5 lakh — more than most people can actually claim.