Salary breakup for a ₹12 lakh CTC
A typical structure, with basic pay at 50% of CTC and HRA at 40% of basic. Your offer letter may split it differently.
| Component | Monthly | Yearly |
|---|---|---|
| Basic pay | ₹50,000 | ₹6,00,000 |
| House rent allowance (HRA) | ₹20,000 | ₹2,40,000 |
| Special allowance | ₹21,596 | ₹2,59,154 |
| Gross salary | ₹91,596 | ₹10,99,154 |
| Employer's PF (EPF and EPS pension) | ₹6,000 | ₹72,000 |
| Gratuity (set aside, not paid monthly) | ₹2,404 | ₹28,846 |
| CTC | ₹1,00,000 | ₹12,00,000 |
| Your PF (12% of basic) | − ₹6,000 | − ₹72,000 |
| Professional tax | − ₹208 | − ₹2,500 |
| Income tax, new regime (TDS) | ₹0 | ₹0 |
| In-hand pay | ₹85,388 | ₹10,24,654 |
Your CTC is more than the salary you receive: ₹72,000 of employer PF goes into your EPF and EPS (pension) accounts and ₹28,846 is set aside for gratuity, which you get only if you stay at least 5 years. Your own PF of ₹6,000 a month is deducted from your gross pay, but it is still your money, earning interest in your EPF.
New vs old regime on a ₹12 lakh CTC
| New regime | Old regime | |
|---|---|---|
| Standard deduction | ₹75,000 | ₹50,000 |
| HRA exemption, investments and other deductions | Not allowed | ₹3,57,500 |
| Taxable salary | ₹10,24,154 | ₹6,91,654 |
| Income tax for the year | ₹0 | ₹52,864 |
| In-hand a month | ₹85,388 | ₹80,982 |
The old-regime column assumes rent of ₹20,000 a month in one of the eight cities with the 50% HRA limit (Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad), ₹1.5 lakh of tax-saving investments with your EPF counted, and ₹25,000 of health insurance. Even with those deductions, the new regime leaves you ₹4,405 a month more. Try your own rent and deductions with the calculator in the old regime, or see the exempt HRA alone with the HRA calculator.
How the PF choice changes your in-hand pay
Employers either take PF at 12% of your full basic pay or limit it to the wage ceiling, which rose from ₹15,000 to ₹25,000 a month on 17 September 2026. A lower PF means more in hand now but less saved in your EPF.
| PF basis | Your PF a month | In-hand a month | Into EPF a year | Into EPS a year |
|---|---|---|---|---|
| 12% of basic | ₹6,000 | ₹85,388 | ₹1,19,004 | ₹24,996 |
| 12% of up to ₹25,000 | ₹3,000 | ₹91,388 | ₹47,004 | ₹24,996 |
| No PF | ₹0 | ₹97,388 | ₹0 | ₹0 |
Your basic pay of ₹50,000 a month is above the ceiling, so the two options give different results. When PF is cut, the employer's saving is usually paid as special allowance, which is taxable. See how your EPF could grow with the EPF calculator.
What these figures assume
A resident under 60 whose only income is this salary, for tax year 2026-27, with no variable pay or bonus. Basic pay is 50% of CTC, which also meets the labour codes' rule that wages are at least half of pay. Gratuity is set aside at 4.81% of basic, a common employer practice. Professional tax is ₹2,500 a year, the most a state can charge; it varies by state, so your payslip may show less or none. Actual TDS each month depends on the declarations you give your employer. For tax alone, see the income tax calculator.
Other CTCs
- On a ₹10 lakh CTC, the in-hand salary is about ₹71,122 a month ( ₹10 lakh CTC in-hand salary).
- On a ₹15 lakh CTC, it is about ₹1,00,301 a month ( ₹15 lakh CTC in-hand salary).
Frequently asked questions
What is the in-hand salary for a ₹12 lakh CTC?
How much tax is deducted on a ₹12 lakh CTC?
How much PF is deducted from a ₹12 lakh CTC?
Is the old or new regime better on a ₹12 lakh CTC?
What is 12 LPA per month?
Estimates for 2026-27 from the assumptions above, rounded to the nearest rupee. Your employer's salary structure, state professional tax and tax declarations will change the figures. This is not tax advice.