How ₹4 LPA becomes ₹29,284 a month
- Start with an annual CTC of ₹4,00,000.
- Remove employer PF (₹19,200) and gratuity (₹7,696), which are not paid as cash: gross salary is ₹3,73,104.
- Subtract your own PF (₹19,200) and professional tax (₹2,500).
- Subtract income tax: ₹0 under the new regime.
- What is left, ₹3,51,404 a year, is about ₹29,284 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 ₹3 LPA to ₹4 LPA adds about ₹7,165 a month in-hand.
- From ₹4 LPA to ₹5 LPA adds about ₹7,373 a month in-hand.
Frequently asked questions
What is the in-hand salary for ₹4 LPA?
On a ₹4 lakh CTC, your monthly in-hand salary is about ₹29,284 under the new regime (₹29,284 new vs ₹29,284 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 ₹4 LPA?
Nothing under the new regime: taxable income of ₹2,98,104 is within the ₹12 lakh rebate limit. Under the old regime with no deductions, tax would be ₹0.
Which tax regime is better at ₹4 LPA?
The old regime does not beat the new regime at this income with typical deductions, so the new regime is the better choice.