Do I really pay no tax up to ₹12 lakh?

On taxable income, yes. With the ₹75,000 standard deduction on top, a salaried person can earn up to ₹12.75 lakh gross and owe nothing. Above that the rebate vanishes and tax is charged on the full slab structure, not just the excess.

Can I still claim 80C in the new regime?

No. Section 80C, 80D, HRA and home-loan interest on a self-occupied property are all unavailable. The trade is simpler filing and lower rates in exchange for giving up the deductions.

Can I switch back to the old regime?

A salaried person without business income can choose freely each year when filing. Your employer will deduct tax under whichever one you declare at the start of the year, and you can still change it in your return.

In-hand salary under the new tax regime

The new regime is now the default. If you never file a form choosing otherwise, this is the one your employer will use to deduct tax.

It has lower rates but almost no deductions. There is no 80C, no HRA exemption, no home-loan interest relief. What you do get is a ₹75,000 standard deduction and a rebate that wipes out tax entirely on taxable income up to ₹12 lakh.

Monthly in-hand salary

₹1,03,573

Income tax of ₹81,766 for the year

Gross salary: ₹13,99,140
Standard deduction: - ₹75,000
Taxable income: ₹13,24,140
Tax before rebate: ₹78,621
Section 87A rebate: - ₹0
Health and education cess: ₹3,145
Total income tax: ₹81,766
Your PF contribution: - ₹72,000
Annual in-hand: ₹12,42,874

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How this is worked out

Gross salary is CTC minus employer PF and the gratuity provision.
A flat ₹75,000 standard deduction comes off gross salary. Nothing else does.
Slabs run 5% from ₹4 lakh, 10% from ₹8 lakh, 15% from ₹12 lakh, 20% from ₹16 lakh, 25% from ₹20 lakh and 30% above ₹24 lakh.
If taxable income is ₹12 lakh or less, the Section 87A rebate of up to ₹60,000 cancels the tax completely.
Cess of 4% is added to whatever tax remains.

What this does not cover

The rebate is a cliff, not a slope. One rupee of taxable income over ₹12 lakh and the whole rebate disappears, though marginal relief softens the landing just above the line.
Employer contributions to NPS under 80CCD(2) are still allowed in the new regime. This calculator does not include them.
Surcharge above ₹50 lakh of taxable income is applied, and caps at 25% in the new regime rather than the old regime 37%.

Questions people ask

Do I really pay no tax up to ₹12 lakh?: On taxable income, yes. With the ₹75,000 standard deduction on top, a salaried person can earn up to ₹12.75 lakh gross and owe nothing. Above that the rebate vanishes and tax is charged on the full slab structure, not just the excess.
Can I still claim 80C in the new regime?: No. Section 80C, 80D, HRA and home-loan interest on a self-occupied property are all unavailable. The trade is simpler filing and lower rates in exchange for giving up the deductions.
Can I switch back to the old regime?: A salaried person without business income can choose freely each year when filing. Your employer will deduct tax under whichever one you declare at the start of the year, and you can still change it in your return.

Where these figures come from

Rates and rules on this page were last checked against the source on 31 August 2026. Tax law changes; check the source before you rely on a number for a decision.

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