How ₹21 LPA becomes ₹1,39,306 a month
- Start with an annual CTC of ₹21,00,000.
- Remove employer PF (₹1,00,800) and gratuity (₹40,404), which are not paid as cash: gross salary is ₹19,58,796.
- Subtract your own PF (₹1,00,800) and professional tax (₹2,500).
- Subtract income tax: ₹1,83,830 under the new regime.
- What is left, ₹16,71,666 a year, is about ₹1,39,306 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 ₹20 LPA to ₹21 LPA adds about ₹5,756 a month in-hand.
- From ₹21 LPA to ₹22 LPA adds about ₹5,756 a month in-hand.
Frequently asked questions
What is the in-hand salary for ₹21 LPA?
On a ₹21 lakh CTC, your monthly in-hand salary is about ₹1,39,306 under the new regime (₹1,39,306 new vs ₹1,23,932 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 ₹21 LPA?
About ₹1,83,830 a year under the new regime (taxable income ₹18,83,796) and ₹3,68,315 under the old regime with no deductions claimed, including 4% cess.
Which tax regime is better at ₹21 LPA?
The new regime is better unless you can claim about ₹6,94,599 or more in old-regime deductions (HRA, 80C, 80D, home-loan interest and similar) on top of the standard deduction.