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CTC ₹12 LPA — New Regime vs Old Regime In-Hand (2025-26)
At ₹12,00,000 CTC with 50% basic and no additional deductions, the new regime gives ₹10,24,740/yr (₹85,395/mo) versus ₹8,92,408/yr (₹74,367/mo) in the old regime — a difference of ₹1,32,332 in favour of the new regime. Under the new regime income tax is ₹0 thanks to the §87A rebate (taxable income below ₹12L). Under the old regime (no HRA/80C deductions claimed), income tax rises to ₹1,32,332. If you can claim substantial HRA exemption or 80C/80D deductions, the old regime gap narrows — use the full calculator to model your exact deduction set and find the better regime.
CTC ₹12,00,000, 50% basic, non-metro, Karnataka PT — regime comparison (FY 2025-26):
- New regime: income tax ₹0, in-hand ₹10,24,740/yr (₹85,395/mo)
- Old regime (no deductions): income tax ₹1,32,332, in-hand ₹8,92,408/yr (₹74,367/mo)
- New regime advantage: ₹1,32,332/yr more in-hand (without deductions)
Frequently asked questions
New vs old regime for 12 LPA CTC — which gives more in-hand?
Without deductions, the new regime gives ₹10,24,740/yr vs ₹8,92,408/yr for the old regime — ₹1,32,332 more per year. The new regime wins because the §87A rebate zeroes income tax up to ₹12L taxable, while the old regime without deductions charges ₹1,32,332 income tax.
When is the old regime better at 12 LPA?
The old regime can beat the new regime at 12 LPA only if you claim very large deductions: HRA exemption of ₹2L+, full 80C ₹1.5L, and 80D health insurance. These would need to collectively reduce your taxable income by enough to make old-regime tax lower than zero — which is not possible. For ₹12L CTC, the new regime with zero income tax via §87A is almost always the better choice.