At this salary
- No income tax under the new regime: taxable income of ₹4,19,619 (after the ₹75,000 standard deduction) is within the ₹12 lakh rebate limit of section 156.
- Your PF wage of ₹22,500 a month is between ₹15,000 and ₹25,000, the band brought under mandatory EPF coverage when the wage ceiling rose on 17 September 2026.
- The old regime is already no costlier here, even without extra deductions.
How far you are from paying income tax
With this salary structure, a CTC up to about ₹13.91 lakh pays no income tax under the new regime. You have roughly ₹8.51 lakh of raises left before tax starts.
If your employer contributes 14% of basic to NPS (deductible under section 124(1) even in the new regime), the tax-free CTC rises to about ₹15.07 lakh.
PF is your biggest deduction
With no income tax at this salary, your own PF of ₹2,700 a month (6.0% of CTC) is the main thing between gross and in-hand, along with professional tax in some states.
Your PF wage of ₹22,500 is at or below the ₹25,000 ceiling, so capping PF at the ceiling would not lower it.
What the next ₹1 lakh of CTC is worth
Moving from ₹5.4 lakh to ₹6.4 lakh adds ₹85,596 a year to your in-hand (₹7,133 a month). Of the extra ₹1 lakh, ₹0 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 | ₹22,500 | ₹22,500 |
| HRA | ₹9,000 | ₹9,000 |
| Special allowance | ₹9,718 | ₹9,718 |
| Gross salary | ₹41,218 | ₹41,218 |
| Your PF | −₹2,700 | −₹2,700 |
| Income tax (TDS) | ₹0 | ₹0 |
| In-hand (before professional tax) | ₹38,518 | ₹38,518 |
Yearly tax on ₹45,000 a month
| Step | New regime | Old regime |
|---|---|---|
| Gross salary | ₹4,94,619 | ₹4,94,619 |
| Deductions | −₹75,000 | −₹82,400 |
| Taxable income | ₹4,19,619 | ₹4,12,219 |
| Tax on slabs | ₹981 | ₹8,111 |
| Rebate (s.156) | −₹981 | −₹8,111 |
| Cess (4%) | ₹0 | ₹0 |
| Total tax | ₹0 | ₹0 |
Old regime deductions counted: Standard deduction ₹50,000; s.123 (old 80C), incl. your PF ₹32,400.
Professional tax on ₹45,000 a month, by state
| State | Per month | Per year | In-hand (new regime) |
|---|---|---|---|
| Telangana | ₹200 | ₹2,400 | ₹38,318 |
| West Bengal | ₹200 | ₹2,400 | ₹38,318 |
| Gujarat | ₹200 | ₹2,400 | ₹38,318 |
| Maharashtra | ₹200 | ₹2,500 | ₹38,318 |
| Karnataka | ₹200 | ₹2,500 | ₹38,318 |
| Madhya Pradesh | ₹208 | ₹2,500 | ₹38,310 |
PF on ₹45,000 a month
| PF calculated on | Your PF a month | In-hand (new regime) |
|---|---|---|
| Full PF wage (₹22,500) | ₹2,700 | ₹38,518 |
| Statutory ceiling (₹25,000) | ₹2,700 | ₹38,518 |
Worked example
Fixed monthly CTC ₹45,000: basic ₹22,500 (50%), HRA ₹9,000, employer PF ₹2,700, gratuity ₹1,082, leaving a special allowance of ₹9,718. Gross salary ₹41,218 a month, or ₹4,94,619 a year. After the ₹75,000 standard deduction, taxable income is ₹4,19,619 and tax is ₹0. Monthly in-hand: ₹41,218 − ₹2,700 PF − ₹0 TDS = ₹38,518.
Neighbouring salaries
| CTC | In-hand a month (new regime) |
|---|---|
| ₹35,000 a month | ₹29,959 |
| ₹40,000 a month | ₹34,238 |
| ₹5 LPA | ₹35,665 |
| ₹45,000 a month | ₹38,518 |
| ₹6 LPA | ₹42,798 |
| ₹7 LPA | ₹49,931 |
| ₹60,000 a month | ₹51,358 |
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).
- “₹45,000 a month” is read as monthly CTC (₹5.4 lakh a year). Use the calculator above to match your offer letter.