🇮🇳 India · FY 2026-27 · new regime
₹12 lakh salary — in-hand pay FY 2026-27
A ₹12 lakh salary pays zero income tax in FY 2026-27 under the new regime — the Section 87A rebate covers it entirely, so in-hand pay is the full ₹1,00,000 a month before PF.
| Line | Yearly | Monthly | — |
|---|---|---|---|
| Gross salary (CTC) | ₹12,00,000 | ₹1,00,000 | — |
| Standard deduction | −₹75,000 | — | — |
| Income tax + 4% cess | −₹0 | −₹0 | — |
| In-hand (before PF) | ₹12,00,000 | ₹1,00,000 | — |
What this means in practice
This salary sits inside the tax-free zone created by Budget 2025 and retained in Budget 2026: salaried income up to ₹12.75 lakh effectively pays nothing under the new regime. Compare the same package in the UK or Germany, where comparable salaries lose 25–45% to tax and social contributions.
Common questions
What is the in-hand salary for ₹12 lakh CTC in FY 2026-27? +
With zero income tax (the Section 87A rebate covers it fully), the in-hand salary is ₹1,00,000 a month before PF — the full ₹12,00,000 a year.
How much tax on ₹12 lakh under the new regime? +
Zero. After the ₹75,000 standard deduction, taxable income is ₹11,25,000 — at or below the ₹12 lakh rebate limit, so Section 87A cancels the entire tax.
Does this include PF and surcharge? +
No — EPF depends on your basic-salary structure (typically 12% of basic), so subtract your monthly PF for the bank-credit figure. Surcharge only applies above ₹50 lakh taxable income.