CTC to in-hand
40 LPA in-hand salary per month
A CTC of ₹40 lakh a year leaves about ₹2,64,445 in hand each month under the new tax regime (FY 2025-26 (AY 2026-27)), after provident fund, professional tax and income tax.
In hand each month
₹2,64,445
- Yearly CTC
- ₹40,00,000
- Employer's PF (inside the CTC)
- − ₹21,600
- Pay that is taxed
- ₹39,78,400
- Your PF
- − ₹21,600
- Professional tax
- − ₹2,400
- Income tax with cess
- − ₹7,81,061
- In hand over a year
- ₹31,73,340
Tax is 19.6% of the pay that is taxed.
If part of the 40 lakh is variable pay
Variable pay is paid once a year, so the monthly salary is lower the more of the CTC it is.
| Variable share | In hand each month | In hand over a year |
|---|---|---|
| None | ₹2,64,445 | ₹31,73,340 |
| 10% | ₹2,41,512 | ₹31,73,344 |
| 20% | ₹2,18,578 | ₹31,73,336 |
| 30% | ₹1,95,645 | ₹31,73,340 |
Work it out with your own numbers
Your basic pay share, provident fund and state professional tax may differ from the usual ones used here. Change them, add a second offer, or work out the CTC you need for a monthly in-hand pay.
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How this is worked out
- Income tax uses the new tax regime (section 115BAC) slabs for FY 2025-26 (AY 2026-27), a standard deduction of ₹75,000, the section 87A rebate and 4% cess.
- Provident fund is 12% of the PF wage, taken on the usual cap of 15,000 a month, with the employer's matching share taken out of the CTC first. Basic pay is taken as 40% of the CTC.
- Professional tax is taken as 2,400 a year; it differs by state.
- Not included: HRA and other old-regime deductions, employer NPS, insurance and other payroll deductions, and income from elsewhere. This is an estimate, not tax advice: your payslip is what counts.
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