How ₹23 LPA becomes ₹1,50,513 a month
- Start with an annual CTC of ₹23,00,000.
- Remove employer PF (₹1,10,400) and gratuity (₹44,252), which are not paid as cash: gross salary is ₹21,45,348.
- Subtract your own PF (₹1,10,400) and professional tax (₹2,500).
- Subtract income tax: ₹2,26,290 under the new regime.
- What is left, ₹18,06,158 a year, is about ₹1,50,513 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 ₹22 LPA to ₹23 LPA adds about ₹5,451 a month in-hand.
- From ₹23 LPA to ₹24 LPA adds about ₹5,352 a month in-hand.
Frequently asked questions
What is the in-hand salary for ₹23 LPA?
On a ₹23 lakh CTC, your monthly in-hand salary is about ₹1,50,513 under the new regime (₹1,50,513 new vs ₹1,34,077 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 ₹23 LPA?
About ₹2,26,290 a year under the new regime (taxable income ₹20,70,348) and ₹4,23,524 under the old regime with no deductions claimed, including 4% cess.
Which tax regime is better at ₹23 LPA?
The new regime is better unless you can claim about ₹7,45,058 or more in old-regime deductions (HRA, 80C, 80D, home-loan interest and similar) on top of the standard deduction.