How ₹12 LPA becomes ₹88,268 a month
- Start with an annual CTC of ₹12,00,000.
- Remove employer PF (₹57,600) and gratuity (₹23,088), which are not paid as cash: gross salary is ₹11,19,312.
- Subtract your own PF (₹57,600) and professional tax (₹2,500).
- Subtract income tax: ₹0 under the new regime.
- What is left, ₹10,59,212 a year, is about ₹88,268 a month.
These figures assume 40% basic salary, PF on the full basic, gratuity inside CTC, Karnataka professional tax (₹2,500 a year; other states differ), a metro city and no other deductions. Your payslip can differ if your employer structures pay differently.
What a raise would mean
- From ₹11 LPA to ₹12 LPA adds about ₹7,373 a month in-hand.
- From ₹12 LPA to ₹13 LPA adds about ₹7,373 a month in-hand.
Frequently asked questions
What is the in-hand salary for ₹12 LPA?
On a ₹12 lakh CTC, your monthly in-hand salary is about ₹88,268 under the new regime (₹88,268 new vs ₹78,278 old with no deductions claimed), assuming 40% basic, PF on full basic, and Karnataka professional tax (₹2,500 a year).
How much income tax is payable on ₹12 LPA?
Nothing under the new regime: taxable income of ₹10,44,312 is within the ₹12 lakh rebate limit. Under the old regime with no deductions, tax would be ₹1,19,874.
Which tax regime is better at ₹12 LPA?
The new regime is better unless you can claim about ₹5,69,312 or more in old-regime deductions (HRA, 80C, 80D, home-loan interest and similar) on top of the standard deduction.