16 LPA in-hand pay (FY 2026-27)
A CTC of ₹16 lakh a year works out to about ₹1,11,907 a month in hand under the new tax regime, after PF, professional tax and income tax.
Monthly in-hand salary
₹1,11,907
New regime · ₹13,42,881 a year
- Old regime
- ₹1,00,339 a month
- Income tax (new)
- ₹1,01,119 a year
- Gross pay
- ₹1,26,933 a month
- Your PF
- ₹6,400 a month
Assumes basic pay of 40% of CTC, PF of 12% of basic from you and your employer inside the CTC, ₹2,400 a year of professional tax, no other income and no deductions beyond PF. For a salaried person under 60.
Breakdown for a year
| Per year | New regime | Old regime |
|---|---|---|
| CTC | ₹16,00,000 | ₹16,00,000 |
| Employer PF | −₹76,800 | −₹76,800 |
| Gross salary | ₹15,23,200 | ₹15,23,200 |
| Your PF | −₹76,800 | −₹76,800 |
| Professional tax | −₹2,400 | −₹2,400 |
| Taxable income | ₹14,48,200 | ₹13,94,000 |
| Income tax with cess | −₹1,01,119 | −₹2,39,928 |
| In hand a year | ₹13,42,881 | ₹12,04,072 |
| In hand a month | ₹1,11,907 | ₹1,00,339 |
A month's payslip at 16 LPA
Under the new tax regime, income tax (TDS) is spread evenly throughout the year.
| Gross pay | ₹1,26,933 |
|---|---|
| Your PF | −₹6,400 |
| Professional tax | −₹200 |
| Income tax (TDS) | −₹8,427 |
| Credited to your bank | ₹1,11,907 |
The professional tax is usually ₹200 monthly (₹300 in one month in certain states), while some states do not charge it at all.
How the pay structure affects it
The same ₹16 lakh CTC can be divided in various ways. Look at your offer letter to see which applies.
| Structure | Regime | In hand a month |
|---|---|---|
| Basic pay 40% of CTC, PF on full basic (the figures above) | New | ₹1,11,907 |
| Basic pay 50% of CTC | New | ₹1,08,956 |
| PF capped at ₹1,800 a month (₹15,000 wage ceiling) | New | ₹1,20,389 |
| Employer PF paid on top of the CTC | New | ₹1,17,308 |
| Gratuity (4.81% of basic) included in the CTC | New | ₹1,09,742 |
| No PF deducted | New | ₹1,23,708 |
| ₹1.5 lakh of 80C (PF included) and ₹25,000 of health insurance (80D) | Old | ₹1,02,893 |
Old or new tax regime?
Unless your deductions, besides PF and the standard deduction (80C investments, health insurance, HRA, home-loan interest), total more than around ₹4,71,000 yearly, the new regime gives you more. Beyond that, the old regime offers more.