New vs old tax regime, FY 2026-27
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 package
12 LPA
Bonus or performance pay; kept out of the monthly figure
Rent and HRANo rent declared
Old regime only; exemption is the least of three limits
City
Deductions (old regime)₹2,02,400 allowed
EPF, PPF, ELSS, LIC, tuition; capped at ₹1,50,000
Extra NPS over 80C; capped at ₹50,000
₹25,000 self and family, plus ₹25,000–50,000 for parents
Self-occupied house; capped at ₹2,00,000
LTA, 80E education loan interest, 80G donations, 80TTA
Tax and profilePT ₹2,400/yr · age 30
₹0 in Delhi, Haryana, UP; about ₹2,400–2,500 in Karnataka, Maharashtra, Bengal
Monthly in hand · new regime
₹90,200
₹10,82,400 for the year · the new regime saves ₹1,04,520/year
- Gross/month
- ₹95,200
- Income tax/month
- ₹0
- EPF + PT/month
- ₹5,000
- Effective tax
- 0.0%
FY 2026-27 rules · verified 3 Sep 2026 · nothing you type leaves your browser
What this salary means
Computed from your numbers, nothing sent anywhere- Income tax₹0The 87A rebate wipes out tax on taxable income up to ₹12 lakh, so nothing goes to income tax this year.
- HRA unused₹1,92,000You receive HRA but declared no rent. Add your rent to see the old regime exemption.Open calculator
- EPF corpus at 60₹2,20,76,435Your 12% and the employer share compounding at 8.25% with 5% annual raises, starting from age 30.Open calculator
- Home loan you can carry₹41,57,529An EMI of ₹36,080 (40% of in hand) at 8.5% over 20 years.
- Gratuity after 5 years₹1,15,38515 days of basic for every year served, tax free up to ₹20 lakh. Paid on top of CTC when you leave.Open calculator
- Among tax filerstop 11%Gross salary of ₹11,42,400 sits above 89% of income tax returns filed in India.
Where each month's CTC goes
- In hand₹90,20090.2%
- Employee PF₹4,8004.8%
- Professional tax₹2000.2%
- Employer PF₹4,8004.8%
In hand as CTC grows
- New regime₹90,200/month
- Old regime₹81,490/month
At 12 L ctc (your figure)
Your year, line by line
| Component | Per month |
|---|---|
| Cost to company | ₹1,00,000 |
| Basic | ₹40,000 |
| House rent allowance | ₹16,000 |
| Employer EPF, retained for you | − ₹4,800 |
| Gross salary | ₹95,200 |
| Income tax, cess and surcharge | ₹-0 |
| Employee EPF | − ₹4,800 |
| Professional tax | − ₹200 |
| Total in hand | ₹90,200 |
New regime (FY 2026-27)lower tax
| Gross salary | ₹95,200 |
| Standard deduction | − ₹6,250 |
| Taxable income | ₹88,950 |
| Rebate 87A | ₹3,895 |
| Income tax + cess | ₹-0 |
| Employee PF | − ₹4,800 |
| Professional tax | − ₹200 |
| Monthly in hand | ₹90,200 |
Old regime
| Gross salary | ₹95,200 |
| Standard deduction | − ₹4,167 |
| Section 80C | − ₹12,500 |
| Professional tax 16(iii) | − ₹200 |
| Taxable income | ₹78,333 |
| Income tax + cess | − ₹8,710 |
| Employee PF | − ₹4,800 |
| Professional tax | − ₹200 |
| Monthly in hand | ₹81,490 |
Why might this differ from your payslip?
Companies set basic anywhere between 30% and 60% of CTC. Basic drives EPF, gratuity and HRA, so a different share moves the monthly figure by a few thousand rupees. Read the basic line on your offer letter and set the slider to match.
Bonus and variable components sit inside CTC but are not paid monthly, and are often paid at 80–100% of target. Enter the variable amount above and the monthly figure will show only the fixed part.
Many employers compute PF on the ₹15,000 statutory wage ceiling (₹1,800 a month) instead of the full basic. Some keep employer PF outside CTC. Both toggles are in the package section.
Payroll spreads the annual tax across twelve months, but it recomputes when you declare investments, change jobs mid year or receive a bonus. The March payslip is often lower than this estimate; the yearly total should match.
Food coupons, group insurance premiums, gym or phone reimbursements and stock grants all live inside CTC at some companies. They are not cash, so they do not appear here. Subtract them from CTC before entering it.
Does this match your payslip?
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.