At this salary
- Taxable income is ₹12,98,942; your top slab rate is 15% and tax is 5.2% of CTC under the new regime.
- If your employer caps PF at the ₹25,000 ceiling, your PF falls from ₹7,500 to ₹3,000 a month and in-hand rises to ₹1,08,807.
- The old regime only beats the new one if you claim more than ₹4,23,000 of extra deductions (HRA, s.123 beyond your PF, s.126, home loan interest).
A typical metro renter: old vs new regime
Suppose you pay rent of ₹31,250 a month in one of the eight HRA cities, fill section 123 to ₹1.5 lakh and pay ₹25,000 for health insurance. Old-regime tax would be ₹85,580 against ₹77,830 in the new regime, so the new regime still saves ₹7,750.
| Old-regime deduction | Amount |
|---|---|
| HRA exemption | ₹3,00,000 |
| Standard deduction | ₹50,000 |
| s.123 (old 80C), incl. your PF | ₹1,50,000 |
| s.126 health insurance | ₹25,000 |
Employer NPS: the one big deduction left in the new regime
If your employer restructures 14% of basic (₹8,750 a month) into NPS, it is deductible under section 124(1) and your new-regime tax falls by ₹77,830 a year. The money goes to your NPS account instead of your salary, so in-hand drops but total wealth rises.
What the next ₹1 lakh of CTC is worth
Moving from ₹15 lakh to ₹16 lakh adds ₹71,306 a year to your in-hand (₹5,942 a month). Of the extra ₹1 lakh, ₹14,290 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 | ₹62,500 | ₹62,500 |
| HRA | ₹25,000 | ₹25,000 |
| Special allowance | ₹26,995 | ₹26,995 |
| Gross salary | ₹1,14,495 | ₹1,14,495 |
| Your PF | −₹7,500 | −₹7,500 |
| Income tax (TDS) | −₹6,486 | −₹15,833 |
| In-hand (before professional tax) | ₹1,00,509 | ₹91,163 |
Yearly tax on ₹15 LPA
| Step | New regime | Old regime |
|---|---|---|
| Gross salary | ₹13,73,942 | ₹13,73,942 |
| Deductions | −₹75,000 | −₹1,40,000 |
| Taxable income | ₹12,98,942 | ₹12,33,942 |
| Tax on slabs | ₹74,841 | ₹1,82,682 |
| Rebate (s.156) | −₹0 | −₹0 |
| Cess (4%) | ₹2,994 | ₹7,307 |
| Total tax | ₹77,830 | ₹1,89,990 |
Old regime deductions counted: Standard deduction ₹50,000; s.123 (old 80C), incl. your PF ₹90,000. To match the new regime, you would need ₹4,23,000 more in deductions.
Professional tax on ₹15 LPA, by state
| State | Per month | Per year | In-hand (new regime) |
|---|---|---|---|
| Telangana | ₹200 | ₹2,400 | ₹1,00,309 |
| West Bengal | ₹200 | ₹2,400 | ₹1,00,309 |
| Gujarat | ₹200 | ₹2,400 | ₹1,00,309 |
| Maharashtra | ₹200 | ₹2,500 | ₹1,00,309 |
| Karnataka | ₹200 | ₹2,500 | ₹1,00,309 |
| Madhya Pradesh | ₹208 | ₹2,500 | ₹1,00,301 |
PF on ₹15 LPA
| PF calculated on | Your PF a month | In-hand (new regime) |
|---|---|---|
| Full PF wage (₹62,500) | ₹7,500 | ₹1,00,509 |
| Statutory ceiling (₹25,000) | ₹3,000 | ₹1,08,807 |
Worked example
Fixed monthly CTC ₹1,25,000: basic ₹62,500 (50%), HRA ₹25,000, employer PF ₹7,500, gratuity ₹3,005, leaving a special allowance of ₹26,995. Gross salary ₹1,14,495 a month, or ₹13,73,942 a year. After the ₹75,000 standard deduction, taxable income is ₹12,98,942 and tax is ₹77,830. Monthly in-hand: ₹1,14,495 − ₹7,500 PF − ₹6,486 TDS = ₹1,00,509.
Neighbouring salaries
| CTC | In-hand a month (new regime) |
|---|---|
| ₹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 |
| ₹20 LPA | ₹1,29,540 |
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.