In-hand salary · India · tax year 2026-27
3 LPA in-hand salary
A CTC of 3 lakh a year (₹3,00,000, or ₹25,000 a month on paper) leaves about ₹22,000 a month in hand under the new tax regime, assuming basic pay is half of CTC and PF is 12% of basic. There is no income tax at this level in either regime.
By Dominic Roworth · Income-tax Act, 2025 rates for 2026-27
3 LPA, step by step
| A year | New regime | Old regime |
|---|---|---|
| CTC | ₹3,00,000 | ₹3,00,000 |
| Employer's PF (12% of basic) | -₹18,000 | -₹18,000 |
| Gross salary | ₹2,82,000 | ₹2,82,000 |
| Your PF (12% of basic) | -₹18,000 | -₹18,000 |
| Taxable income | ₹2,07,000 | ₹2,14,000 |
| Income tax and cess | ₹0 | ₹0 |
| In hand a year | ₹2,64,000 | ₹2,64,000 |
| In hand a month | ₹22,000 | ₹22,000 |
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 | ₹21,792 |
| Maharashtra (women) | Nil | ₹22,000 |
| Karnataka | Nil | ₹22,000 |
| Telangana | ₹2,400 | ₹21,800 |
| Tamil Nadu (Chennai) | ₹2,500 | ₹21,792 |
| Gujarat | ₹2,400 | ₹21,800 |
Rates and sources are on the in-hand salary calculator, where you can also set your own basic pay and deductions.
What changes your 3 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 | ₹22,000 | baseline |
| Basic 60%, PF 12% of basic | ₹21,400 | -₹600 |
| Basic 50%, PF 12%, gratuity in CTC | ₹21,399 | -₹601 |
| No PF deducted | ₹25,000 | ₹3,000 |
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.
New or old regime at 3 LPA?
It makes no difference to tax: at ₹3,00,000 the rebate wipes out the tax in both regimes, so the in-hand pay is the same. The new regime is simpler and is the default.
Questions
What is the in-hand salary for 3 LPA?
About ₹22,000 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 (₹18,000 a year) comes out of the CTC first, then your own PF (₹18,000). Professional tax, where your state charges it, takes up to ₹2,500 a year more.
Is there income tax on 3 LPA?
No. At ₹3,00,000, taxable income stays within the limits where the rebate cancels the tax, in both regimes, so in-hand pay is CTC minus PF and any professional tax.
More
- In-hand salary calculator, with your own basic pay, PF, state and deductions
- 4 LPA in-hand salary
- 5 LPA in-hand salary
- 12 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.