New Regime Tax Breakdown
Under the new regime, only the standard deduction of ₹75,000 is allowed. No other deductions like 80C, 80D, or HRA are available.
| Income Slab | Rate | Tax |
|---|---|---|
| ₹0 - ₹4,00,000 | 0% | ₹0 |
| ₹4,00,000 - ₹8,00,000 | 5% | ₹20,000 |
| ₹8,00,000 - ₹12,00,000 | 10% | ₹40,000 |
| Tax on Income | ₹60,000 | |
| Less: Sec 87A Rebate | -₹60,000 | |
| Add: 4% Cess | +₹0 | |
| Total Tax Payable | ₹0 |
Old Regime Tax Breakdown
Under the old regime with only the standard deduction of ₹50,000 (no other deductions claimed). With additional deductions, the old regime tax could be significantly lower.
| Income Slab | Rate | Tax |
|---|---|---|
| ₹0 - ₹2,50,000 | 0% | ₹0 |
| ₹2,50,000 - ₹5,00,000 | 5% | ₹12,500 |
| ₹5,00,000 - ₹10,00,000 | 20% | ₹1,00,000 |
| ₹10,00,000 - ₹12,25,000 | 30% | ₹67,500 |
| Tax on Income | ₹1,80,000 | |
| Add: 4% Cess | +₹7,200 | |
| Total Tax Payable | ₹1,87,200 |
Analysis: New Regime is Better
For a gross salary of ₹12.75 Lakh with only standard deduction, the new regime saves ₹1,87,200 compared to the old regime. The new regime benefits from wider tax slabs and a higher standard deduction of ₹75,000.
At this income level, the new regime provides zero tax thanks to the Section 87A rebate, which eliminates tax for taxable income up to ₹12 lakh.
The effective tax rate under the best regime is 0.0%, meaning your annual take-home (before other deductions) would be approximately ₹12,75,000 or ₹1,06,250/month.