In-hand salary · India · tax year 2026-27
12 LPA in-hand salary
A CTC of 12 lakh a year (₹12,00,000, or ₹1,00,000 a month on paper) leaves about ₹88,000 a month in hand under the new tax regime, assuming basic pay is half of CTC and PF is 12% of basic. Income tax and cess take ₹0 a year.
By Dominic Roworth · Income-tax Act, 2025 rates for 2026-27
12 LPA, step by step
| A year | New regime | Old regime |
|---|---|---|
| CTC | ₹12,00,000 | ₹12,00,000 |
| Employer's PF (12% of basic) | -₹72,000 | -₹72,000 |
| Gross salary | ₹11,28,000 | ₹11,28,000 |
| Your PF (12% of basic) | -₹72,000 | -₹72,000 |
| Taxable income | ₹10,53,000 | ₹10,06,000 |
| Income tax and cess | ₹0 | -₹1,18,872 |
| In hand a year | ₹10,56,000 | ₹9,37,128 |
| In hand a month | ₹88,000 | ₹78,094 |
Taxable income is gross salary minus the standard deduction (₹75,000 new regime, ₹50,000 old), and in the old regime also your PF under section 123 (old 80C). Professional tax isn't included above; it depends on your state:
| State | Professional tax a year | In hand a month (new regime) |
|---|---|---|
| Maharashtra (men) | ₹2,500 | ₹87,792 |
| Maharashtra (women) | ₹2,500 | ₹87,792 |
| Karnataka | ₹2,500 | ₹87,792 |
| Telangana | ₹2,400 | ₹87,800 |
| Tamil Nadu (Chennai) | ₹2,500 | ₹87,792 |
| Gujarat | ₹2,400 | ₹87,800 |
Rates and sources are on the in-hand salary calculator, where you can also set your own basic pay and deductions.
What changes your 12 LPA in-hand pay
The same CTC can mean different monthly pay, because the split of your salary decides how much goes to PF and gratuity:
| Salary structure | In hand a month (new regime) | Difference |
|---|---|---|
| Basic 50% of CTC, PF 12% of basic | ₹88,000 | baseline |
| Basic 50%, PF on the ₹25,000 ceiling | ₹94,000 | ₹6,000 |
| Basic 60%, PF 12% of basic | ₹85,600 | -₹2,400 |
| Basic 50%, PF 12%, gratuity in CTC | ₹85,596 | -₹2,404 |
| No PF deducted | ₹1,00,000 | ₹12,000 |
PF isn't lost money: both your share and your employer's go into your provident fund account. But it doesn't reach your salary account each month, which is what "in hand" means. A lower basic doesn't cut PF the other way: under the Code on Social Security, wages for PF can't be less than half of your total pay. And PF is only compulsory on the first ₹25,000 of wages a month, the ceiling since 17 September 2026.
New or old regime at 12 LPA?
The new regime leaves ₹1,18,872 a year more in hand if your only deductions are PF and the standard deduction. For the old regime to catch up, you would need about ₹5,06,000 a year of extra deductions on top of your PF: HRA exemption on rent you pay, section 123 investments up to the ₹1.5 lakh limit, health insurance under section 126 and similar. Few people at this salary reach that, so the new regime usually wins.
Questions
What is the in-hand salary for 12 LPA?
About ₹88,000 a month under the new tax regime, if basic pay is half of CTC and PF is 12% of basic on each side. The employer's PF (₹72,000 a year) comes out of the CTC first, then your own PF (₹72,000). Professional tax, where your state charges it, takes up to ₹2,500 a year more.
Is there income tax on 12 LPA?
Under the new regime, ₹0 a year on taxable income of ₹10,53,000. Under the old regime with only PF and the standard deduction, ₹1,18,872.
More
- In-hand salary calculator, with your own basic pay, PF, state and deductions
- 3 LPA in-hand salary
- 4 LPA in-hand salary
- 5 LPA in-hand salary
- Gratuity calculator: what you're owed after five years
Assumptions: resident employee under 60, no other income, no bonus or reimbursements. Tax from the Income-tax Act, 2025 (sections 19, 123, 156 and 202) and the Finance Act, 2026; details and sources on the calculator page. Not tax advice.