Tax on ₹12L Salary with ₹2L Deductions — Old vs New Regime
Assessment Year 2026-27 (Financial Year 2025-26) • Updated September 2026 • Computed by TaxZen
Gross Salary: ₹12,00,000
Section 80C Deductions: ₹2,00,000
New Regime saves you ₹1,06,600
New Regime Tax: ₹0 • Old Regime Tax: ₹1,06,600
Side-by-Side Comparison
| Component | New Regime | Old Regime |
|---|---|---|
| Gross Salary | ₹12,00,000 | ₹12,00,000 |
| Standard Deduction | (-) ₹75,000 | (-) ₹50,000 |
| Section 80C Deductions | Not available | (-) ₹2,00,000 |
| Taxable Income | ₹11,25,000 | ₹9,50,000 |
| Tax on Slabs | ₹52,500 | ₹1,02,500 |
| Rebate u/s 87A | (-) ₹52,500 | (-) ₹0 |
| Tax after Rebate | ₹0 | ₹1,02,500 |
| Surcharge | ₹0 | ₹0 |
| Health & Education Cess (4%) | ₹0 | ₹4,100 |
| Total Tax Payable | ₹0 | ₹1,06,600 |
| Effective Tax Rate | 0.00% | 8.88% |
New Regime — Slab-by-Slab Breakdown
| Income Range | Rate | Taxable Amount | Tax |
|---|---|---|---|
| ₹0 — ₹4L | 0% | ₹4,00,000 | ₹0 |
| ₹4L — ₹8L | 5% | ₹4,00,000 | ₹20,000 |
| ₹8L — ₹12L | 10% | ₹3,25,000 | ₹32,500 |
| Total Slab Tax | ₹52,500 | ||
Old Regime — Slab-by-Slab Breakdown
| Income Range | Rate | Taxable Amount | Tax |
|---|---|---|---|
| ₹0 — ₹2.5L | 0% | ₹2,50,000 | ₹0 |
| ₹2.5L — ₹5L | 5% | ₹2,50,000 | ₹12,500 |
| ₹5L — ₹10L | 20% | ₹4,50,000 | ₹90,000 |
| Total Slab Tax | ₹1,02,500 | ||
Key Takeaway
For a gross salary of ₹12,00,000 with ₹2,00,000 in Section 80C deductions, the New Regime is better, saving you ₹1,06,600 in taxes for AY 2026-27. The new regime's lower slab rates and higher standard deduction outweigh the loss of deductions.
This computation uses the latest tax slabs from the Union Budget applicable for AY 2026-27. TaxZen auto-updates when rates change — these numbers are always current.
Compute Your Exact Tax
This page shows a standard scenario. Your actual tax depends on HRA, home loan interest, 80D, NPS, and other deductions. Use TaxZen's free calculator for a precise computation with your real numbers — no sign-up needed, all computation runs in your browser.
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