At this salary
- No income tax under the new regime: taxable income of ₹11,15,750 (after the ₹75,000 standard deduction) is within the ₹12 lakh rebate limit of section 156.
- If your employer caps PF at the ₹25,000 ceiling, your PF falls from ₹6,500 to ₹3,000 a month and in-hand rises to ₹99,729.
- The old regime only beats the new one if you claim more than ₹5,63,000 of extra deductions (HRA, s.123 beyond your PF, s.126, home loan interest).
How far you are from paying income tax
With this salary structure, a CTC up to about ₹13.91 lakh pays no income tax under the new regime. You have roughly ₹91,000 of raises left before tax starts.
If your employer contributes 14% of basic to NPS (deductible under section 124(1) even in the new regime), the tax-free CTC rises to about ₹15.07 lakh.
What the next ₹1 lakh of CTC is worth
Moving from ₹13 lakh to ₹14 lakh adds ₹77,956 a year to your in-hand (₹6,496 a month). Of the extra ₹1 lakh, ₹7,640 goes to income tax and the rest to PF, gratuity and employer PF.
Monthly payslip: new vs old regime
Typical month from September 2026, no professional tax, no extra old-regime deductions.
| Item | New regime | Old regime |
|---|---|---|
| Basic | ₹54,167 | ₹54,167 |
| HRA | ₹21,667 | ₹21,667 |
| Special allowance | ₹23,396 | ₹23,396 |
| Gross salary | ₹99,229 | ₹99,229 |
| Your PF | −₹6,500 | −₹6,500 |
| Income tax (TDS) | ₹0 | −₹11,382 |
| In-hand (before professional tax) | ₹92,729 | ₹81,347 |
Yearly tax on ₹13 LPA
| Step | New regime | Old regime |
|---|---|---|
| Gross salary | ₹11,90,750 | ₹11,90,750 |
| Deductions | −₹75,000 | −₹1,28,000 |
| Taxable income | ₹11,15,750 | ₹10,62,750 |
| Tax on slabs | ₹51,575 | ₹1,31,325 |
| Rebate (s.156) | −₹51,575 | −₹0 |
| Cess (4%) | ₹0 | ₹5,253 |
| Total tax | ₹0 | ₹1,36,580 |
Old regime deductions counted: Standard deduction ₹50,000; s.123 (old 80C), incl. your PF ₹78,000. To match the new regime, you would need ₹5,63,000 more in deductions.
Professional tax on ₹13 LPA, by state
| State | Per month | Per year | In-hand (new regime) |
|---|---|---|---|
| Telangana | ₹200 | ₹2,400 | ₹92,529 |
| West Bengal | ₹200 | ₹2,400 | ₹92,529 |
| Gujarat | ₹200 | ₹2,400 | ₹92,529 |
| Maharashtra | ₹200 | ₹2,500 | ₹92,529 |
| Karnataka | ₹200 | ₹2,500 | ₹92,529 |
| Madhya Pradesh | ₹208 | ₹2,500 | ₹92,521 |
PF on ₹13 LPA
| PF calculated on | Your PF a month | In-hand (new regime) |
|---|---|---|
| Full PF wage (₹54,167) | ₹6,500 | ₹92,729 |
| Statutory ceiling (₹25,000) | ₹3,000 | ₹99,729 |
Worked example
Fixed monthly CTC ₹1,08,333: basic ₹54,167 (50%), HRA ₹21,667, employer PF ₹6,500, gratuity ₹2,604, leaving a special allowance of ₹23,396. Gross salary ₹99,229 a month, or ₹11,90,750 a year. After the ₹75,000 standard deduction, taxable income is ₹11,15,750 and tax is ₹0. Monthly in-hand: ₹99,229 − ₹6,500 PF − ₹0 TDS = ₹92,729.
Neighbouring salaries
| CTC | In-hand a month (new regime) |
|---|---|
| ₹10 LPA | ₹71,330 |
| ₹11 LPA | ₹78,463 |
| ₹12 LPA | ₹85,596 |
| ₹13 LPA | ₹92,729 |
| ₹14 LPA | ₹99,226 |
| ₹15 LPA | ₹1,00,509 |
| ₹16 LPA | ₹1,06,452 |
Assumptions
- Basic 50% of fixed CTC, HRA 40% of basic, employer PF and gratuity inside CTC, PF on the full basic, no variable pay.
- PF and gratuity wages follow the Labour Code 50% rule (it does not change anything at a 50% basic).
- Use the calculator above to match your offer letter.