At this salary
- No income tax under the new regime: taxable income of ₹8,04,323 (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 ₹4,800 to ₹3,000 a month and in-hand rises to ₹72,077.
- The old regime only beats the new one if you claim more than ₹2,72,000 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 ₹4.31 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 ₹9.6 lakh to ₹10.6 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 | ₹40,000 | ₹40,000 |
| HRA | ₹16,000 | ₹16,000 |
| Special allowance | ₹17,277 | ₹17,277 |
| Gross salary | ₹73,277 | ₹73,277 |
| Your PF | −₹4,800 | −₹4,800 |
| Income tax (TDS) | ₹0 | −₹5,793 |
| In-hand (before professional tax) | ₹68,477 | ₹62,684 |
Yearly tax on ₹80,000 a month
| Step | New regime | Old regime |
|---|---|---|
| Gross salary | ₹8,79,323 | ₹8,79,323 |
| Deductions | −₹75,000 | −₹1,07,600 |
| Taxable income | ₹8,04,323 | ₹7,71,723 |
| Tax on slabs | ₹20,432 | ₹66,844 |
| Rebate (s.156) | −₹20,432 | −₹0 |
| Cess (4%) | ₹0 | ₹2,674 |
| Total tax | ₹0 | ₹69,520 |
Old regime deductions counted: Standard deduction ₹50,000; s.123 (old 80C), incl. your PF ₹57,600. To match the new regime, you would need ₹2,72,000 more in deductions.
Professional tax on ₹80,000 a month, by state
| State | Per month | Per year | In-hand (new regime) |
|---|---|---|---|
| Telangana | ₹200 | ₹2,400 | ₹68,277 |
| West Bengal | ₹200 | ₹2,400 | ₹68,277 |
| Gujarat | ₹200 | ₹2,400 | ₹68,277 |
| Maharashtra | ₹200 | ₹2,500 | ₹68,277 |
| Karnataka | ₹200 | ₹2,500 | ₹68,277 |
| Madhya Pradesh | ₹208 | ₹2,500 | ₹68,269 |
PF on ₹80,000 a month
| PF calculated on | Your PF a month | In-hand (new regime) |
|---|---|---|
| Full PF wage (₹40,000) | ₹4,800 | ₹68,477 |
| Statutory ceiling (₹25,000) | ₹3,000 | ₹72,077 |
Worked example
Fixed monthly CTC ₹80,000: basic ₹40,000 (50%), HRA ₹16,000, employer PF ₹4,800, gratuity ₹1,923, leaving a special allowance of ₹17,277. Gross salary ₹73,277 a month, or ₹8,79,323 a year. After the ₹75,000 standard deduction, taxable income is ₹8,04,323 and tax is ₹0. Monthly in-hand: ₹73,277 − ₹4,800 PF − ₹0 TDS = ₹68,477.
Neighbouring salaries
| CTC | In-hand a month (new regime) |
|---|---|
| ₹8 LPA | ₹57,064 |
| ₹70,000 a month | ₹59,917 |
| ₹9 LPA | ₹64,197 |
| ₹80,000 a month | ₹68,477 |
| ₹10 LPA | ₹71,330 |
| ₹11 LPA | ₹78,463 |
| ₹12 LPA | ₹85,596 |
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).
- “₹80,000 a month” is read as monthly CTC (₹9.6 lakh a year). Use the calculator above to match your offer letter.