In-hand Salary for 18 LPA (FY 2026-27)
A CTC of ₹18 lakh a year works out to about ₹1,24,331 a month in hand under the new tax regime, after PF, professional tax and income tax.
Monthly in-hand salary
₹1,24,331
New regime · ₹14,91,971 a year
- Old regime
- ₹1,10,705 a month
- Income tax (new)
- ₹1,32,829 a year
- Gross pay
- ₹1,42,800 a month
- Your PF
- ₹7,200 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 | ₹18,00,000 | ₹18,00,000 |
| Employer PF | −₹86,400 | −₹86,400 |
| Gross salary | ₹17,13,600 | ₹17,13,600 |
| Your PF | −₹86,400 | −₹86,400 |
| Professional tax | −₹2,400 | −₹2,400 |
| Taxable income | ₹16,38,600 | ₹15,74,800 |
| Income tax with cess | −₹1,32,829 | −₹2,96,338 |
| In hand a year | ₹14,91,971 | ₹13,28,462 |
| In hand a month | ₹1,24,331 | ₹1,10,705 |
A month's payslip at 18 LPA
Income tax (TDS) under the new tax regime, spread evenly throughout the year.
| Gross pay | ₹1,42,800 |
|---|---|
| Your PF | −₹7,200 |
| Professional tax | −₹200 |
| Income tax (TDS) | −₹11,069 |
| Credited to your bank | ₹1,24,331 |
Professional tax is typically ₹200 monthly (₹300 for one month in some states), while some states don't charge it.
How the Salary Structure Affects It
The ₹18 lakh CTC can be divided in various ways. Look at your offer letter to see which applies to you.
| Structure | Regime | In hand a month |
|---|---|---|
| Basic pay 40% of CTC, PF on full basic (the figures above) | New | ₹1,24,331 |
| Basic pay 50% of CTC | New | ₹1,21,105 |
| PF capped at ₹1,800 a month (₹15,000 wage ceiling) | New | ₹1,34,008 |
| Employer PF paid on top of the CTC | New | ₹1,30,033 |
| Gratuity (4.81% of basic) included in the CTC | New | ₹1,22,045 |
| No PF deducted | New | ₹1,37,233 |
| ₹1.5 lakh of 80C (PF included) and ₹25,000 of health insurance (80D) | Old | ₹1,13,009 |
Old or new tax regime?
The new scheme usually gives you more if your extra deductions (beyond PF and the standard deduction, like 80C investments, health insurance, HRA, home-loan interest) are less than about ₹5,25,000 yearly. If above that, the old scheme is usually better.