At this salary
- No income tax under the new regime: taxable income of ₹5,84,492 (after the ₹75,000 standard deduction) is within the ₹12 lakh rebate limit of section 156.
- If your employer caps PF at the ₹25,000 ceiling, your PF falls from ₹3,600 to ₹3,000 a month and in-hand rises to ₹52,558.
- The old regime only beats the new one if you claim more than ₹67,000 of extra deductions (HRA, s.123 beyond your PF, s.126, home loan interest).
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 ₹6.71 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.
What the next ₹1 lakh of CTC is worth
Moving from ₹7.2 lakh to ₹8.2 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 | ₹30,000 | ₹30,000 |
| HRA | ₹12,000 | ₹12,000 |
| Special allowance | ₹12,958 | ₹12,958 |
| Gross salary | ₹54,958 | ₹54,958 |
| Your PF | −₹3,600 | −₹3,600 |
| Income tax (TDS) | ₹0 | −₹2,233 |
| In-hand (before professional tax) | ₹51,358 | ₹49,125 |
Yearly tax on ₹60,000 a month
| Step | New regime | Old regime |
|---|---|---|
| Gross salary | ₹6,59,492 | ₹6,59,492 |
| Deductions | −₹75,000 | −₹93,200 |
| Taxable income | ₹5,84,492 | ₹5,66,292 |
| Tax on slabs | ₹9,225 | ₹25,758 |
| Rebate (s.156) | −₹9,225 | −₹0 |
| Cess (4%) | ₹0 | ₹1,030 |
| Total tax | ₹0 | ₹26,790 |
Old regime deductions counted: Standard deduction ₹50,000; s.123 (old 80C), incl. your PF ₹43,200. To match the new regime, you would need ₹67,000 more in deductions.
Professional tax on ₹60,000 a month, by state
| State | Per month | Per year | In-hand (new regime) |
|---|---|---|---|
| Telangana | ₹200 | ₹2,400 | ₹51,158 |
| West Bengal | ₹200 | ₹2,400 | ₹51,158 |
| Gujarat | ₹200 | ₹2,400 | ₹51,158 |
| Maharashtra | ₹200 | ₹2,500 | ₹51,158 |
| Karnataka | ₹200 | ₹2,500 | ₹51,158 |
| Madhya Pradesh | ₹208 | ₹2,500 | ₹51,150 |
PF on ₹60,000 a month
| PF calculated on | Your PF a month | In-hand (new regime) |
|---|---|---|
| Full PF wage (₹30,000) | ₹3,600 | ₹51,358 |
| Statutory ceiling (₹25,000) | ₹3,000 | ₹52,558 |
Worked example
Fixed monthly CTC ₹60,000: basic ₹30,000 (50%), HRA ₹12,000, employer PF ₹3,600, gratuity ₹1,442, leaving a special allowance of ₹12,958. Gross salary ₹54,958 a month, or ₹6,59,492 a year. After the ₹75,000 standard deduction, taxable income is ₹5,84,492 and tax is ₹0. Monthly in-hand: ₹54,958 − ₹3,600 PF − ₹0 TDS = ₹51,358.
Neighbouring salaries
| CTC | In-hand a month (new regime) |
|---|---|
| ₹45,000 a month | ₹38,518 |
| ₹6 LPA | ₹42,798 |
| ₹7 LPA | ₹49,931 |
| ₹60,000 a month | ₹51,358 |
| ₹8 LPA | ₹57,064 |
| ₹70,000 a month | ₹59,917 |
| ₹9 LPA | ₹64,197 |
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).
- “₹60,000 a month” is read as monthly CTC (₹7.2 lakh a year). Use the calculator above to match your offer letter.