At this salary
- Taxable income is ₹19,40,115; your top slab rate is 20% and tax is 8.9% of CTC under the new regime.
- If your employer caps PF at the ₹25,000 ceiling, your PF falls from ₹11,000 to ₹3,000 a month and in-hand rises to ₹1,54,810.
- The old regime only beats the new one if you claim more than ₹5,82,000 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 ₹45,833 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 ₹2,26,240 against ₹1,95,540 in the new regime, so the new regime still saves ₹30,700.
| Old-regime deduction | Amount |
|---|---|
| HRA exemption | ₹4,39,996 |
| 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 (₹12,833 a month) into NPS, it is deductible under section 124(1) and your new-regime tax falls by ₹32,030 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 ₹22 lakh to ₹23 lakh adds ₹64,896 a year to your in-hand (₹5,408 a month). Of the extra ₹1 lakh, ₹20,700 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 | ₹91,667 | ₹91,667 |
| HRA | ₹36,667 | ₹36,667 |
| Special allowance | ₹39,593 | ₹39,593 |
| Gross salary | ₹1,67,926 | ₹1,67,926 |
| Your PF | −₹11,000 | −₹11,000 |
| Income tax (TDS) | −₹16,295 | −₹31,411 |
| In-hand (before professional tax) | ₹1,40,631 | ₹1,25,515 |
Yearly tax on ₹22 LPA
| Step | New regime | Old regime |
|---|---|---|
| Gross salary | ₹20,15,115 | ₹20,15,115 |
| Deductions | −₹75,000 | −₹1,82,000 |
| Taxable income | ₹19,40,115 | ₹18,33,115 |
| Tax on slabs | ₹1,88,024 | ₹3,62,436 |
| Rebate (s.156) | −₹0 | −₹0 |
| Cess (4%) | ₹7,521 | ₹14,497 |
| Total tax | ₹1,95,540 | ₹3,76,930 |
Old regime deductions counted: Standard deduction ₹50,000; s.123 (old 80C), incl. your PF ₹1,32,000. To match the new regime, you would need ₹5,82,000 more in deductions.
Professional tax on ₹22 LPA, by state
| State | Per month | Per year | In-hand (new regime) |
|---|---|---|---|
| Telangana | ₹200 | ₹2,400 | ₹1,40,431 |
| West Bengal | ₹200 | ₹2,400 | ₹1,40,431 |
| Gujarat | ₹200 | ₹2,400 | ₹1,40,431 |
| Maharashtra | ₹200 | ₹2,500 | ₹1,40,431 |
| Karnataka | ₹200 | ₹2,500 | ₹1,40,431 |
| Madhya Pradesh | ₹208 | ₹2,500 | ₹1,40,423 |
PF on ₹22 LPA
| PF calculated on | Your PF a month | In-hand (new regime) |
|---|---|---|
| Full PF wage (₹91,667) | ₹11,000 | ₹1,40,631 |
| Statutory ceiling (₹25,000) | ₹3,000 | ₹1,54,810 |
Worked example
Fixed monthly CTC ₹1,83,333: basic ₹91,667 (50%), HRA ₹36,667, employer PF ₹11,000, gratuity ₹4,407, leaving a special allowance of ₹39,593. Gross salary ₹1,67,926 a month, or ₹20,15,115 a year. After the ₹75,000 standard deduction, taxable income is ₹19,40,115 and tax is ₹1,95,540. Monthly in-hand: ₹1,67,926 − ₹11,000 PF − ₹16,295 TDS = ₹1,40,631.
Neighbouring salaries
| CTC | In-hand a month (new regime) |
|---|---|
| ₹16 LPA | ₹1,06,452 |
| ₹18 LPA | ₹1,18,336 |
| ₹20 LPA | ₹1,29,540 |
| ₹22 LPA | ₹1,40,631 |
| ₹25 LPA | ₹1,56,336 |
| ₹30 LPA | ₹1,80,895 |
| ₹35 LPA | ₹2,04,653 |
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.