Take-home pay for 40 LPA (FY 2026-27)
A CTC of ₹40 lakh a year works out to about ₹2,40,475 a month in hand under the new tax regime, after PF, professional tax and income tax.
Monthly in-hand salary
₹2,40,475
New regime · ₹28,85,704 a year
- Old regime
- ₹2,23,638 a month
- Income tax (new)
- ₹7,27,896 a year
- Gross pay
- ₹3,17,333 a month
- Your PF
- ₹16,000 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 | ₹40,00,000 | ₹40,00,000 |
| Employer PF | −₹1,92,000 | −₹1,92,000 |
| Gross salary | ₹38,08,000 | ₹38,08,000 |
| Your PF | −₹1,92,000 | −₹1,92,000 |
| Professional tax | −₹2,400 | −₹2,400 |
| Taxable income | ₹37,33,000 | ₹36,05,600 |
| Income tax with cess | −₹7,27,896 | −₹9,29,947 |
| In hand a year | ₹28,85,704 | ₹26,83,653 |
| In hand a month | ₹2,40,475 | ₹2,23,638 |
A month's payslip at 40 LPA
Under the new tax system, income tax (TDS) is spread out over the full year.
| Gross pay | ₹3,17,333 |
|---|---|
| Your PF | −₹16,000 |
| Professional tax | −₹200 |
| Income tax (TDS) | −₹60,658 |
| Credited to your bank | ₹2,40,475 |
Professional tax is often ₹200 each month (₹300 for one month in some states), while some states don't charge it.
How the pay structure makes a difference
The same ₹40 lakh CTC can be divided in different ways. See your offer letter to find out which applies to you.
| Structure | Regime | In hand a month |
|---|---|---|
| Basic pay 40% of CTC, PF on full basic (the figures above) | New | ₹2,40,475 |
| Basic pay 50% of CTC | New | ₹2,33,723 |
| PF capped at ₹1,800 a month (₹15,000 wage ceiling) | New | ₹2,64,445 |
| Employer PF paid on top of the CTC | New | ₹2,51,483 |
| Gratuity (4.81% of basic) included in the CTC | New | ₹2,36,063 |
| No PF deducted | New | ₹2,67,483 |
| ₹1.5 lakh of 80C (PF included) and ₹25,000 of health insurance (80D) | Old | ₹2,24,288 |
Old or new tax regime?
The new system gives you more take-home pay unless your deductions over PF and the standard deduction (like 80C investments, health insurance, HRA, or home loan interest) total more than about ₹6,48,000 yearly. If they do, the old system gives you more.