12 LPA in-hand salary: about INR 85,387 a month.
On a CTC of INR 12,00,000 a year you take home about INR 85,387 a month under the new tax regime and INR 76,077 under the old regime.
The INR 12 lakh tax-free line is taxable income, not CTC.
A 12 LPA CTC does not reach the new regime's INR 12 lakh line. Employer PF and gratuity come out of the CTC first and the INR 75,000 standard deduction after them, which leaves taxable income of INR 10,24,140: INR 1,75,860 under the rebate limit.
The section 156 rebate cancels the INR 42,414 of slab tax, so the new regime takes no income tax. With this structure it stays that way until the CTC passes about 13.92 LPA.
The old regime already takes INR 1,11,725 a year here. Its taxable income of INR 9,74,640 is INR 25,360 short of the INR 10 lakh line where its 30% slab begins, and no amount of old regime deductions can beat a regime that charges nothing.
From a 12 LPA CTC to your bank account.
Basic pay at 50% of CTC, PF at 12% of full basic for you and your employer, gratuity at 4.81% of basic inside the CTC, the Maharashtra rate of professional tax for men, no variable pay and no old regime deductions beyond PF and professional tax.
Each month
| Line | New regime | Old regime |
|---|---|---|
| Gross salary | INR 91,595 | INR 91,595 |
| Employee PF | -INR 6,000 | -INR 6,000 |
| Professional tax | -INR 208 | -INR 208 |
| Income tax and cess | INR 0 | -INR 9,310 |
| In-hand | INR 85,387 | INR 76,077 |
For the year
| Line | New regime | Old regime |
|---|---|---|
| CTC | INR 12,00,000 | INR 12,00,000 |
| Employer PF | -INR 72,000 | -INR 72,000 |
| Gratuity provision | -INR 28,860 | -INR 28,860 |
| Gross salary | INR 10,99,140 | INR 10,99,140 |
| Employee PF | -INR 72,000 | -INR 72,000 |
| Professional tax | -INR 2,500 | -INR 2,500 |
| Income tax and cess | INR 0 | -INR 1,11,725 |
| In-hand for the year | INR 10,24,640 | INR 9,12,915 |
12 LPA in-hand salary, answered.
Is a 12 LPA salary tax-free under the new regime?
How much more does the new regime leave at 12 LPA?
Compare another CTC.
Figures are estimates from the FY 2026-27 rules, checked on 22 October 2026. Your employer's payroll and salary structure can change them, and this is not tax advice.
See 10 LPA in-hand salary or 15 LPA in-hand salary, work out any CTC with the in-hand salary calculator, or browse the free career tools.
- Income-tax Act, 2025, section 202 (new regime rates)
- Income-tax Act, 2025, section 156 (rebate)
- Income-tax Act, 2025, section 19 (standard deduction, tax on employment)
- Income-tax Act, 2025, section 123 (Rs 1.5 lakh deduction)
- Memorandum to the Finance Bill, 2026: rates for tax year 2026-27, old regime slabs, surcharge and cess
- PIB, 23 September 2026: new ceiling effective 17 September 2026 (S.O. 5109(E))
- Ministry of Labour and Employment, FAQs on the Labour Codes (16 March 2026)
- Maharashtra GST Department, Profession Tax rate schedule
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