At this salary
- No income tax under the new regime: taxable income of ₹6,94,408 (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 ₹4,200 to ₹3,000 a month and in-hand rises to ₹62,317.
- The old regime only beats the new one if you claim more than ₹1,70,000 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 ₹5.51 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.
What the next ₹1 lakh of CTC is worth
Moving from ₹8.4 lakh to ₹9.4 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 | ₹35,000 | ₹35,000 |
| HRA | ₹14,000 | ₹14,000 |
| Special allowance | ₹15,117 | ₹15,117 |
| Gross salary | ₹64,117 | ₹64,117 |
| Your PF | −₹4,200 | −₹4,200 |
| Income tax (TDS) | ₹0 | −₹4,013 |
| In-hand (before professional tax) | ₹59,917 | ₹55,905 |
Yearly tax on ₹70,000 a month
| Step | New regime | Old regime |
|---|---|---|
| Gross salary | ₹7,69,408 | ₹7,69,408 |
| Deductions | −₹75,000 | −₹1,00,400 |
| Taxable income | ₹6,94,408 | ₹6,69,008 |
| Tax on slabs | ₹14,721 | ₹46,302 |
| Rebate (s.156) | −₹14,721 | −₹0 |
| Cess (4%) | ₹0 | ₹1,852 |
| Total tax | ₹0 | ₹48,150 |
Old regime deductions counted: Standard deduction ₹50,000; s.123 (old 80C), incl. your PF ₹50,400. To match the new regime, you would need ₹1,70,000 more in deductions.
Professional tax on ₹70,000 a month, by state
| State | Per month | Per year | In-hand (new regime) |
|---|---|---|---|
| Telangana | ₹200 | ₹2,400 | ₹59,717 |
| West Bengal | ₹200 | ₹2,400 | ₹59,717 |
| Gujarat | ₹200 | ₹2,400 | ₹59,717 |
| Maharashtra | ₹200 | ₹2,500 | ₹59,717 |
| Karnataka | ₹200 | ₹2,500 | ₹59,717 |
| Madhya Pradesh | ₹208 | ₹2,500 | ₹59,709 |
PF on ₹70,000 a month
| PF calculated on | Your PF a month | In-hand (new regime) |
|---|---|---|
| Full PF wage (₹35,000) | ₹4,200 | ₹59,917 |
| Statutory ceiling (₹25,000) | ₹3,000 | ₹62,317 |
Worked example
Fixed monthly CTC ₹70,000: basic ₹35,000 (50%), HRA ₹14,000, employer PF ₹4,200, gratuity ₹1,683, leaving a special allowance of ₹15,117. Gross salary ₹64,117 a month, or ₹7,69,408 a year. After the ₹75,000 standard deduction, taxable income is ₹6,94,408 and tax is ₹0. Monthly in-hand: ₹64,117 − ₹4,200 PF − ₹0 TDS = ₹59,917.
Neighbouring salaries
| CTC | In-hand a month (new regime) |
|---|---|
| ₹7 LPA | ₹49,931 |
| ₹60,000 a month | ₹51,358 |
| ₹8 LPA | ₹57,064 |
| ₹70,000 a month | ₹59,917 |
| ₹9 LPA | ₹64,197 |
| ₹80,000 a month | ₹68,477 |
| ₹10 LPA | ₹71,330 |
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).
- “₹70,000 a month” is read as monthly CTC (₹8.4 lakh a year). Use the calculator above to match your offer letter.