How ₹18 LPA becomes ₹1,22,037 a month
- Start with an annual CTC of ₹18,00,000.
- Remove employer PF (₹86,400) and gratuity (₹34,632), which are not paid as cash: gross salary is ₹16,78,968.
- Subtract your own PF (₹86,400) and professional tax (₹2,500).
- Subtract income tax: ₹1,25,625 under the new regime.
- What is left, ₹14,64,443 a year, is about ₹1,22,037 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 ₹17 LPA to ₹18 LPA adds about ₹6,143 a month in-hand.
- From ₹18 LPA to ₹19 LPA adds about ₹5,756 a month in-hand.
Frequently asked questions
What is the in-hand salary for ₹18 LPA?
On a ₹18 lakh CTC, your monthly in-hand salary is about ₹1,22,037 under the new regime (₹1,22,037 new vs ₹1,08,714 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 ₹18 LPA?
About ₹1,25,625 a year under the new regime (taxable income ₹16,03,968) and ₹2,85,501 under the old regime with no deductions claimed, including 4% cess.
Which tax regime is better at ₹18 LPA?
The new regime is better unless you can claim about ₹6,01,323 or more in old-regime deductions (HRA, 80C, 80D, home-loan interest and similar) on top of the standard deduction.