At this salary
- Taxable income is ₹22,14,904; your top slab rate is 25% and tax is 10.6% of CTC under the new regime.
- If your employer caps PF at the ₹25,000 ceiling, your PF falls from ₹12,500 to ₹3,000 a month and in-hand rises to ₹1,72,866.
- The old regime only beats the new one if you claim more than ₹6,20,000 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 ₹52,083 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 ₹2,93,250 against ₹2,63,870 in the new regime, so the new regime still saves ₹29,380.
| Old-regime deduction | Amount |
|---|---|
| HRA exemption | ₹4,99,996 |
| 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 (₹14,583 a month) into NPS, it is deductible under section 124(1) and your new-regime tax falls by ₹45,500 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 ₹25 lakh to ₹26 lakh adds ₹61,776 a year to your in-hand (₹5,148 a month). Of the extra ₹1 lakh, ₹23,820 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 | ₹1,04,167 | ₹1,04,167 |
| HRA | ₹41,667 | ₹41,667 |
| Special allowance | ₹44,992 | ₹44,992 |
| Gross salary | ₹1,90,825 | ₹1,90,825 |
| Your PF | −₹12,500 | −₹12,500 |
| Income tax (TDS) | −₹21,989 | −₹38,088 |
| In-hand (before professional tax) | ₹1,56,336 | ₹1,40,238 |
Yearly tax on ₹25 LPA
| Step | New regime | Old regime |
|---|---|---|
| Gross salary | ₹22,89,904 | ₹22,89,904 |
| Deductions | −₹75,000 | −₹2,00,000 |
| Taxable income | ₹22,14,904 | ₹20,89,904 |
| Tax on slabs | ₹2,53,725 | ₹4,39,470 |
| Rebate (s.156) | −₹0 | −₹0 |
| Cess (4%) | ₹10,149 | ₹17,579 |
| Total tax | ₹2,63,870 | ₹4,57,050 |
Old regime deductions counted: Standard deduction ₹50,000; s.123 (old 80C), incl. your PF ₹1,50,000. To match the new regime, you would need ₹6,20,000 more in deductions.
Professional tax on ₹25 LPA, by state
| State | Per month | Per year | In-hand (new regime) |
|---|---|---|---|
| Telangana | ₹200 | ₹2,400 | ₹1,56,136 |
| West Bengal | ₹200 | ₹2,400 | ₹1,56,136 |
| Gujarat | ₹200 | ₹2,400 | ₹1,56,136 |
| Maharashtra | ₹200 | ₹2,500 | ₹1,56,136 |
| Karnataka | ₹200 | ₹2,500 | ₹1,56,136 |
| Madhya Pradesh | ₹208 | ₹2,500 | ₹1,56,128 |
PF on ₹25 LPA
| PF calculated on | Your PF a month | In-hand (new regime) |
|---|---|---|
| Full PF wage (₹1,04,167) | ₹12,500 | ₹1,56,336 |
| Statutory ceiling (₹25,000) | ₹3,000 | ₹1,72,866 |
Worked example
Fixed monthly CTC ₹2,08,333: basic ₹1,04,167 (50%), HRA ₹41,667, employer PF ₹12,500, gratuity ₹5,008, leaving a special allowance of ₹44,992. Gross salary ₹1,90,825 a month, or ₹22,89,904 a year. After the ₹75,000 standard deduction, taxable income is ₹22,14,904 and tax is ₹2,63,870. Monthly in-hand: ₹1,90,825 − ₹12,500 PF − ₹21,989 TDS = ₹1,56,336.
Neighbouring salaries
| CTC | In-hand a month (new regime) |
|---|---|
| ₹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 |
| ₹40 LPA | ₹2,28,411 |
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.