4 LPA: Old vs New Tax Regime Comparison
Comprehensive side-by-side analysis of a ₹4 Lakh salary package. See exact income tax, monthly take-home pay, and the minimum deduction threshold required to switch regimes.
New Tax Regime is the clear winner for 4 LPA
Under default conditions with standard deduction, the New Tax Regime gives you ₹28,332/month vs ₹28,332/month in Old Regime. You save ₹0/year in direct taxes.
Total 80C + 80D + HRA needed in Old Regime to beat New Regime
New Tax Regime
FY 2026-27 Slabs (₹75k Standard Deduction)
Old Tax Regime
Allows 80C, 80D, HRA & Home Loan deductions
Scenario Analysis: Old vs New Regime at 4 LPA
See how varying investment and rent deduction levels change your tax liability.
| Scenario | Old Regime Tax | New Regime Tax | Old Monthly In-Hand | New Monthly In-Hand | Best Regime |
|---|---|---|---|---|---|
| Zero Deductions (Default) | ₹0 | ₹0 | ₹28,332 | ₹28,332 | New Regime |
| ₹1.5 Lakh 80C Claimed | ₹20,000 | ₹0 | ₹26,665 | ₹28,332 | New Regime |
| Full Deductions (80C + 80D + HRA) | ₹0 | ₹0 | ₹28,332 | ₹28,332 | New Regime |
Frequently Asked Questions: 4 LPA Tax Regime
Is New Tax Regime better than Old Tax Regime for 4 LPA salary in FY 2026-27?
Yes. For a 4 LPA package with zero investments, the New Tax Regime provides higher take-home pay of ₹28,332/month compared to ₹28,332/month under the Old Regime, saving ₹0 in annual taxes.
What is the breakeven deduction needed at 4 LPA for Old Regime to save more tax?
At 4 LPA, you need total tax-saving deductions of at least ₹0 (across Section 80C ₹1.5L, Section 80D ₹25k-₹50k, HRA rent exemption, and home loan interest) for the Old Regime to result in lower tax than the New Regime.
What is the standard deduction for 4 LPA under both regimes?
For FY 2026-27, salaried employees receive a flat Standard Deduction of ₹75,000 under the New Tax Regime, whereas the Old Tax Regime offers a Standard Deduction of ₹50,000.
What is the monthly in-hand salary for 4 LPA under New vs Old Regime?
Under the New Tax Regime, your estimated monthly in-hand salary is ₹28,332. Under the Old Regime without deductions, it is ₹28,332/month, and with full standard deductions it is ₹28,332/month.
View complete monthly components, PF, and deductions.
Calculate mutual fund wealth created from your 4 LPA salary.
Check affordable EMI and loan eligibility for 4 LPA CTC.
Estimate retirement corpus and additional tax benefits.