CTC to In-Hand Salary FY 2026-27: What 3, 5, 8, 12 and 20 LPA Pay per Month

A “5 LPA” offer sounds like ₹41,666 a month. Then the first salary lands and it's noticeably less. The gap is the difference between CTC and in-hand pay: CTC includes money that never reaches your bank account.

From CTC to in-hand: what comes off

1. The employer's PF share (12% of basic): counted in your CTC, but paid straight into your PF account.
2. Your own PF share (12% of basic): deducted from your salary each month. It's savings, not a cost.
3. Professional tax: about ₹200 a month in many states.
4. Income tax (TDS): under the new regime, the rebate makes tax zero on income up to ₹12 lakh.

In-hand salary for common packages, FY 2026-27

Worked example: 5 LPA

• Take the employer's PF of ₹24,000 out of the ₹5,00,000 CTC: gross pay is ₹4,76,000.
• Your own PF of ₹24,000 and professional tax of ₹2,400 are deducted.
• Income tax: ₹0, because income this size pays no tax under the new regime.
• In your hand: ₹37,467 a month, about 90% of CTC.

Up to what CTC is there no tax?

Under the new regime, taxable income up to ₹12 lakh pays no tax. Because of the ₹75,000 standard deduction and the employer's PF sitting outside your gross pay, on these assumptions you pay no income tax up to about 13.3 lakh CTC. Above that, tax starts, but marginal relief means a raise never lowers your take-home. At 15 LPA the tax is ₹86,268 a year.