At this salary
- Taxable income is ₹26,72,885; your top slab rate is 30% and tax is 13.2% of CTC under the new regime.
- If your employer caps PF at the ₹25,000 ceiling, your PF falls from ₹15,000 to ₹3,000 a month and in-hand rises to ₹2,01,151.
- The old regime only beats the new one if you claim more than ₹6,50,000 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 ₹62,500 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 ₹4,04,940 against ₹3,97,140 in the new regime, so the new regime still saves ₹7,800.
| Old-regime deduction | Amount |
|---|---|
| HRA exemption | ₹6,00,000 |
| 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 (₹17,500 a month) into NPS, it is deductible under section 124(1) and your new-regime tax falls by ₹65,520 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 ₹30 lakh to ₹31 lakh adds ₹57,016 a year to your in-hand (₹4,751 a month). Of the extra ₹1 lakh, ₹28,580 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 | ₹1,25,000 | ₹1,25,000 |
| HRA | ₹50,000 | ₹50,000 |
| Special allowance | ₹53,990 | ₹53,990 |
| Gross salary | ₹2,28,990 | ₹2,28,990 |
| Your PF | −₹15,000 | −₹15,000 |
| Income tax (TDS) | −₹33,095 | −₹49,995 |
| In-hand (before professional tax) | ₹1,80,895 | ₹1,63,995 |
Yearly tax on ₹30 LPA
| Step | New regime | Old regime |
|---|---|---|
| Gross salary | ₹27,47,885 | ₹27,47,885 |
| Deductions | −₹75,000 | −₹2,00,000 |
| Taxable income | ₹26,72,885 | ₹25,47,885 |
| Tax on slabs | ₹3,81,864 | ₹5,76,864 |
| Rebate (s.156) | −₹0 | −₹0 |
| Cess (4%) | ₹15,275 | ₹23,075 |
| Total tax | ₹3,97,140 | ₹5,99,940 |
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 ₹6,50,000 more in deductions.
Professional tax on ₹30 LPA, by state
| State | Per month | Per year | In-hand (new regime) |
|---|---|---|---|
| Telangana | ₹200 | ₹2,400 | ₹1,80,695 |
| West Bengal | ₹200 | ₹2,400 | ₹1,80,695 |
| Gujarat | ₹200 | ₹2,400 | ₹1,80,695 |
| Maharashtra | ₹200 | ₹2,500 | ₹1,80,695 |
| Karnataka | ₹200 | ₹2,500 | ₹1,80,695 |
| Madhya Pradesh | ₹208 | ₹2,500 | ₹1,80,687 |
PF on ₹30 LPA
| PF calculated on | Your PF a month | In-hand (new regime) |
|---|---|---|
| Full PF wage (₹1,25,000) | ₹15,000 | ₹1,80,895 |
| Statutory ceiling (₹25,000) | ₹3,000 | ₹2,01,151 |
Worked example
Fixed monthly CTC ₹2,50,000: basic ₹1,25,000 (50%), HRA ₹50,000, employer PF ₹15,000, gratuity ₹6,010, leaving a special allowance of ₹53,990. Gross salary ₹2,28,990 a month, or ₹27,47,885 a year. After the ₹75,000 standard deduction, taxable income is ₹26,72,885 and tax is ₹3,97,140. Monthly in-hand: ₹2,28,990 − ₹15,000 PF − ₹33,095 TDS = ₹1,80,895.
Neighbouring salaries
| CTC | In-hand a month (new regime) |
|---|---|
| ₹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.