At this salary
- No income tax under the new regime: taxable income of ₹5,66,173 (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 ₹3,500 to ₹3,000 a month and in-hand rises to ₹50,931.
- The old regime only beats the new one if you claim more than ₹50,000 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 ₹6.91 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.
What the next ₹1 lakh of CTC is worth
Moving from ₹7 lakh to ₹8 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 | ₹29,167 | ₹29,167 |
| HRA | ₹11,667 | ₹11,667 |
| Special allowance | ₹12,598 | ₹12,598 |
| Gross salary | ₹53,431 | ₹53,431 |
| Your PF | −₹3,500 | −₹3,500 |
| Income tax (TDS) | ₹0 | −₹1,936 |
| In-hand (before professional tax) | ₹49,931 | ₹47,995 |
Yearly tax on ₹7 LPA
| Step | New regime | Old regime |
|---|---|---|
| Gross salary | ₹6,41,173 | ₹6,41,173 |
| Deductions | −₹75,000 | −₹92,000 |
| Taxable income | ₹5,66,173 | ₹5,49,173 |
| Tax on slabs | ₹8,309 | ₹22,334 |
| Rebate (s.156) | −₹8,309 | −₹0 |
| Cess (4%) | ₹0 | ₹893 |
| Total tax | ₹0 | ₹23,230 |
Old regime deductions counted: Standard deduction ₹50,000; s.123 (old 80C), incl. your PF ₹42,000. To match the new regime, you would need ₹50,000 more in deductions.
Professional tax on ₹7 LPA, by state
| State | Per month | Per year | In-hand (new regime) |
|---|---|---|---|
| Telangana | ₹200 | ₹2,400 | ₹49,731 |
| West Bengal | ₹200 | ₹2,400 | ₹49,731 |
| Gujarat | ₹200 | ₹2,400 | ₹49,731 |
| Maharashtra | ₹200 | ₹2,500 | ₹49,731 |
| Karnataka | ₹200 | ₹2,500 | ₹49,731 |
| Madhya Pradesh | ₹208 | ₹2,500 | ₹49,723 |
PF on ₹7 LPA
| PF calculated on | Your PF a month | In-hand (new regime) |
|---|---|---|
| Full PF wage (₹29,167) | ₹3,500 | ₹49,931 |
| Statutory ceiling (₹25,000) | ₹3,000 | ₹50,931 |
Worked example
Fixed monthly CTC ₹58,333: basic ₹29,167 (50%), HRA ₹11,667, employer PF ₹3,500, gratuity ₹1,402, leaving a special allowance of ₹12,598. Gross salary ₹53,431 a month, or ₹6,41,173 a year. After the ₹75,000 standard deduction, taxable income is ₹5,66,173 and tax is ₹0. Monthly in-hand: ₹53,431 − ₹3,500 PF − ₹0 TDS = ₹49,931.
Neighbouring salaries
| CTC | In-hand a month (new regime) |
|---|---|
| ₹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 |
| ₹70,000 a month | ₹59,917 |
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.