₹12 lakh rebate boundary

Tax on ₹12 Lakh Plus ₹1 Income: Marginal Relief

See how Section 156 marginal relief prevents a disproportionate default-regime tax jump immediately above ₹12 lakh total income.

How much tax is payable on this salary?

For a qualifying resident individual with normal-rate income of ₹12,00,001, the estimated default-regime tax is ₹1, compared with ₹1,79,400 under the represented optional-old-regime inputs.

The page deliberately uses a non-salary normal-income example so total income is exactly one rupee above the ₹12 lakh Section 156 boundary.

Worked-example age assumption: the static optional-old-regime result uses the regular below-60 slab table. If you are 60–79 or 80+, choose the matching age category in the interactive calculator below.

Default regime

Estimated tax: ₹1
Monthly income after income tax: ₹1,00,000
Represented total income: ₹12,00,001
Effective tax rate: 0.00%

Optional old regime

Estimated tax: ₹1,79,400
Monthly income after income tax: ₹85,050
Represented total income: ₹12,00,001
Effective tax rate: 14.95%

Decision check before using this salary example

Compare the old regime only after entering your actual HRA, eligible deductions and any other income. The lower result can change when a payroll assumption is different.

Test your actual facts in the income-tax calculator

Compare nearby salary levels and the surcharge boundary before choosing the result that matches your facts.

Tax on ₹12 Lakh Salary in 2026-27Calculate tax on ₹12 lakh salary in Tax Year 2026-27 under the default and optional old regimes, including the rebate boundary and post-tax income.Tax on ₹15 Lakh Salary in 2026-27Calculate tax on ₹15 lakh salary in Tax Year 2026-27 and compare default versus optional-old-regime results with editable deductions.Tax on ₹50 Lakh + ₹1 Income: Marginal ReliefSee tax on ₹50 lakh plus ₹1 of normal income and how marginal relief limits the surcharge jump at the ₹50 lakh threshold.

Calculation sequence

Gross income → applicable salary standard deduction → represented total income → slab tax → rebate or marginal relief → surcharge → 4% cess.

Why this result changes

Marginal relief does not convert every income component into slab-rate income. Special-rate gains and residential status can materially change the result.

Interactive

Move one rupee at a time around the rebate boundary

Open the standalone income-tax calculator

Income Tax Calculator (Tax Year 2026-27)

Compare old and default regimes for Tax Year 2026-27 under the Income-tax Act, 2025 as amended by Finance Act, 2026.

Scope: salary or other normal-rate income only. Use the capital-gains, crypto or other specialist calculator for special-rate income, winnings, losses or treaty positions.

Gross Annual Salary / Income

Salaried Employee

Other normal-rate income

Interest, rent or other income taxed at normal slab rates. Do not include special-rate gains or winnings.

Residential status for Section 156

Age category (optional old regime)

Old Regime Itemized Deductions

Section 123 / legacy 80C (max ₹1.5L)

Eligible HRA from detailed HRA calculator

HRA exemption applies only to eligible salary income.

Section 126 premium: self & familySelf or spouse is a senior citizen (₹50k cap)

Section 126 premium: parentsParent is a senior citizen (₹50k cap)

Section 124 additional NPS (legacy 80CCD(1B))

Current-year house-property loss set-off (max ₹2L)

Old-regime comparison only. Enter an already-computed eligible current-year loss, not total loan interest.

Optional-old-regime comparison includes only the categories shown. It does not infer deductions from CTC and does not include an uncategorised “other deductions” amount.

Lower Tax in This Entered ScenarioNew Regime is lower by ₹1,79,399 in this estimate

New Regime: Lower Estimate

New Regime Has the Lower Estimate

You save ₹1,79,399 in annual tax under the New Regime.

Monthly Tax Difference₹14,950/mo

Component

New Regime (FY 26-27)

Old Regime

Gross Annual Salary / Income₹12,00,001₹12,00,001

Standard Deduction-₹0-₹0

Entered deductions & exemptions₹0-₹0

Net Taxable Income₹12,00,001₹12,00,001

Base Income Tax₹60,000.15₹1,72,500.3

Tax Rebate (Section 156 / legacy Section 87A)-₹0-₹0

Marginal rebate relief-₹59,999.15₹0

Surcharge after marginal relief₹0₹0

Health & Education Cess (4%)₹0.04₹6,900.012

Total Annual Tax Liability₹1₹1,79,400

Monthly Income After Tax Only₹1,00,000₹85,050

The lower figure is not personal regime advice. The comparison uses only the inputs shown and excludes payroll deductions, capital-gain details, losses, treaty positions, and unmodelled exemptions.

Gross Income vs Estimated Income Tax (New Regime)

Live Breakdown

Gross Salary₹12,00,001

Income After Tax Only

₹12,00,000100%

Total Tax Payable

₹10%

Official statutory sources

Income Tax Department · Government of India

August 2026

FAQ

Is this the amount credited to my bank?

No. It is gross represented income less estimated income tax only. Payroll and salary-structure deductions are separate.

Can I change every assumption?

Yes. The calculator below exposes income, residence, employment type and represented old-regime deductions.

Is this legal or filing advice?

No. It is a planning illustration using the cited Tax Year 2026-27 rules. Verify the return utility and your facts before filing.