At this salary
- This salary sits in the marginal-relief band just above ₹12 lakh: taxable income is ₹12,07,346, and tax before cess is limited to the ₹7,346 by which it crosses ₹12 lakh.
- If your employer caps PF at the ₹25,000 ceiling, your PF falls from ₹7,000 to ₹3,000 a month and in-hand rises to ₹1,03,066.
- The old regime only beats the new one if you claim more than ₹6,49,000 of extra deductions (HRA, s.123 beyond your PF, s.126, home loan interest).
You are in the marginal-relief band
Taxable income of ₹12,07,346 is ₹7,346 over ₹12 lakh. Section 156(2)(b) limits tax before cess to that excess, so you pay ₹7,640 instead of the full slab tax of ₹63,547.
In this band every extra rupee of taxable income adds a rupee of tax (plus cess) until normal slab tax takes over, so the next ₹1 lakh of CTC adds ₹70,190 of tax and only ₹15,406 a year to your in-hand.
An employer NPS contribution of ₹7,346 a year (1.0% of basic, within the 14% limit) would bring taxable income back to ₹12 lakh and the tax to nil.
What the next ₹1 lakh of CTC is worth
Moving from ₹14 lakh to ₹15 lakh adds ₹15,406 a year to your in-hand (₹1,284 a month). Of the extra ₹1 lakh, ₹70,190 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 | ₹58,333 | ₹58,333 |
| HRA | ₹23,333 | ₹23,333 |
| Special allowance | ₹25,196 | ₹25,196 |
| Gross salary | ₹1,06,862 | ₹1,06,862 |
| Your PF | −₹7,000 | −₹7,000 |
| Income tax (TDS) | −₹637 | −₹13,608 |
| In-hand (before professional tax) | ₹99,226 | ₹86,255 |
Yearly tax on ₹14 LPA
| Step | New regime | Old regime |
|---|---|---|
| Gross salary | ₹12,82,346 | ₹12,82,346 |
| Deductions | −₹75,000 | −₹1,34,000 |
| Taxable income | ₹12,07,346 | ₹11,48,346 |
| Tax on slabs | ₹61,103 | ₹1,57,005 |
| Rebate (s.156) | −₹53,753 | −₹0 |
| Cess (4%) | ₹294 | ₹6,280 |
| Total tax | ₹7,640 | ₹1,63,290 |
Old regime deductions counted: Standard deduction ₹50,000; s.123 (old 80C), incl. your PF ₹84,000. To match the new regime, you would need ₹6,49,000 more in deductions.
Professional tax on ₹14 LPA, by state
| State | Per month | Per year | In-hand (new regime) |
|---|---|---|---|
| Telangana | ₹200 | ₹2,400 | ₹99,026 |
| West Bengal | ₹200 | ₹2,400 | ₹99,026 |
| Gujarat | ₹200 | ₹2,400 | ₹99,026 |
| Maharashtra | ₹200 | ₹2,500 | ₹99,026 |
| Karnataka | ₹200 | ₹2,500 | ₹99,026 |
| Madhya Pradesh | ₹208 | ₹2,500 | ₹99,018 |
PF on ₹14 LPA
| PF calculated on | Your PF a month | In-hand (new regime) |
|---|---|---|
| Full PF wage (₹58,333) | ₹7,000 | ₹99,226 |
| Statutory ceiling (₹25,000) | ₹3,000 | ₹1,03,066 |
Worked example
Fixed monthly CTC ₹1,16,667: basic ₹58,333 (50%), HRA ₹23,333, employer PF ₹7,000, gratuity ₹2,804, leaving a special allowance of ₹25,196. Gross salary ₹1,06,862 a month, or ₹12,82,346 a year. After the ₹75,000 standard deduction, taxable income is ₹12,07,346 and tax is ₹7,640. Monthly in-hand: ₹1,06,862 − ₹7,000 PF − ₹637 TDS = ₹99,226.
Neighbouring salaries
| CTC | In-hand a month (new regime) |
|---|---|
| ₹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 |
| ₹18 LPA | ₹1,18,336 |
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.