With a ₹25 lakh CTC, your take-home pay is about ₹1,61,217 a month under the new tax regime. Income tax takes ₹2,74,794 a year.
Change the basic pay, PF or deductions below to match your offer letter.
| Breakdown | Yearly | Monthly |
|---|
| Component | Yearly | Monthly |
|---|---|---|
| CTC | ₹25,00,000 | ₹2,08,333 |
| Basic pay (40% of CTC) | ₹10,00,000 | ₹83,333 |
| Employer PF | −₹1,20,000 | −₹10,000 |
| Gratuity | −₹48,100 | −₹4,008 |
| Gross salary | ₹23,31,900 | ₹1,94,325 |
| Your PF contribution | −₹1,20,000 | −₹10,000 |
| Professional tax | −₹2,500 | −₹208 |
| Income tax (new regime) | −₹2,74,794 | −₹22,900 |
| In-hand salary | ₹19,34,606 | ₹1,61,217 |
Gross salary of ₹23,31,900 minus the ₹75,000 standard deduction leaves taxable income of ₹22,56,900. The new regime slabs apply to that amount:
With only PF and the standard deduction, the old regime would cost you ₹4,78,733 a year in tax, which is ₹2,03,939 more than the new regime. For the old regime to break even, you would need about ₹6,53,600 of extra deductions beyond PF, from 80C, 80D, HRA, home loan interest and NPS. That is more than most salaried people claim, so the new regime is the safer choice.
Your in-hand pay under the old regime with no extra deductions would be ₹1,44,222 a month, against ₹1,61,217 under the new regime.
About ₹1,61,217 per month, or ₹19,34,606 a year, under the new tax regime in FY 2026–27. This assumes basic pay at 40% of CTC, PF at 12% of basic, gratuity included in CTC and ₹2,500 professional tax.
₹2,74,794 a year under the new regime, including 4% cess. That is about ₹22,900 deducted from each month's salary.
With only PF and the standard deduction, the old regime would cost you ₹4,78,733 a year in tax, which is ₹2,03,939 more than the new regime. For the old regime to break even, you would need about ₹6,53,600 of extra deductions beyond PF, from 80C, 80D, HRA, home loan interest and NPS. That is more than most salaried people claim, so the new regime is the safer choice.
Budget 2026 kept the slabs from last year. The new regime is the default unless you choose the old one.
| Taxable income | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
| Taxable income | Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Start with CTC and remove the parts you never receive as pay: employer PF and gratuity. That gives gross salary. From gross, subtract your own PF contribution, professional tax and income tax. Divide what is left by 12.
Under the new regime, yes for salaried people. The ₹75,000 standard deduction brings ₹12.75 lakh of salary down to ₹12 lakh of taxable income, and the Section 87A rebate cancels tax up to that level.
The old regime only wins when your deductions are large: full 80C, health insurance, HRA on high rent, and home loan interest together. If you claim little beyond PF, the new regime almost always gives more take-home pay.
Employers deduct tax (TDS) based on the regime you declare and adjust it through the year. Bonuses, variable pay, meal cards and NPS contributions also change the monthly figure.
This is an estimate for resident salaried individuals below 60 years. It includes the 4% health and education cess, surcharge with marginal relief, and the Section 87A rebate. It does not cover variable pay, perquisites or capital gains. Check your final tax with a qualified advisor.