At this salary
- No income tax under the new regime: taxable income of ₹4,74,577 (after the ₹75,000 standard deduction) is within the ₹12 lakh rebate limit of section 156.
- Your PF wage of ₹25,000 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 ₹7.91 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 ₹3,000 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 ₹25,000 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 ₹6 lakh to ₹7 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 | ₹25,000 | ₹25,000 |
| HRA | ₹10,000 | ₹10,000 |
| Special allowance | ₹10,798 | ₹10,798 |
| Gross salary | ₹45,798 | ₹45,798 |
| Your PF | −₹3,000 | −₹3,000 |
| Income tax (TDS) | ₹0 | ₹0 |
| In-hand (before professional tax) | ₹42,798 | ₹42,798 |
Yearly tax on ₹6 LPA
| Step | New regime | Old regime |
|---|---|---|
| Gross salary | ₹5,49,577 | ₹5,49,577 |
| Deductions | −₹75,000 | −₹86,000 |
| Taxable income | ₹4,74,577 | ₹4,63,577 |
| Tax on slabs | ₹3,729 | ₹10,679 |
| Rebate (s.156) | −₹3,729 | −₹10,679 |
| Cess (4%) | ₹0 | ₹0 |
| Total tax | ₹0 | ₹0 |
Old regime deductions counted: Standard deduction ₹50,000; s.123 (old 80C), incl. your PF ₹36,000.
Professional tax on ₹6 LPA, by state
| State | Per month | Per year | In-hand (new regime) |
|---|---|---|---|
| Telangana | ₹200 | ₹2,400 | ₹42,598 |
| West Bengal | ₹200 | ₹2,400 | ₹42,598 |
| Gujarat | ₹200 | ₹2,400 | ₹42,598 |
| Maharashtra | ₹200 | ₹2,500 | ₹42,598 |
| Karnataka | ₹200 | ₹2,500 | ₹42,598 |
| Madhya Pradesh | ₹208 | ₹2,500 | ₹42,590 |
PF on ₹6 LPA
| PF calculated on | Your PF a month | In-hand (new regime) |
|---|---|---|
| Full PF wage (₹25,000) | ₹3,000 | ₹42,798 |
| Statutory ceiling (₹25,000) | ₹3,000 | ₹42,798 |
Worked example
Fixed monthly CTC ₹50,000: basic ₹25,000 (50%), HRA ₹10,000, employer PF ₹3,000, gratuity ₹1,202, leaving a special allowance of ₹10,798. Gross salary ₹45,798 a month, or ₹5,49,577 a year. After the ₹75,000 standard deduction, taxable income is ₹4,74,577 and tax is ₹0. Monthly in-hand: ₹45,798 − ₹3,000 PF − ₹0 TDS = ₹42,798.
Neighbouring salaries
| CTC | In-hand a month (new regime) |
|---|---|
| ₹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 |
| ₹8 LPA | ₹57,064 |
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.