Income Tax on ₹12.75 lakh Salary (FY 2026-27)

Q: Income Tax on ₹12.75 lakh Salary (FY 2026-27)?

On a ₹12.75 lakh salary, your income tax for FY 2026-27 is nil in the new regime, thanks to the ₹75,000 standard deduction and the 87A rebate.

On a ₹12.75 lakh salary, your income tax for FY 2026-27 is nil in the new regime, thanks to the ₹75,000 standard deduction and the 87A rebate.

Gross salary: ₹12,75,000
Tax, new regime: ₹0
Tax, old regime (₹2 lakh deductions): ₹1,24,800
Better choice: New regime
Monthly tax (new regime): ₹0

How it is worked out

New regime: ₹12.75 lakh minus the ₹75,000 standard deduction gives taxable income of ₹12,00,000. Slab tax is ₹60,000, the 87A rebate takes off ₹60,000, and 4% cess adds ₹0.

The working, both regimes

	New regime	Old regime
Taxable income	₹12,00,000	₹10,25,000
Tax on slabs	₹60,000	₹1,20,000
Rebate (87A)	−₹60,000	−₹0
Surcharge	₹0	₹0
Cess (4%)	₹0	₹4,800
Total tax	₹0	₹1,24,800

Income Tax on ₹12.75 lakh Salary (FY 2026-27)

How it is worked out

The working, both regimes

Try your own numbers

Similar answers