12 LPA in Hand: Monthly Salary After Tax and PF
The short answer
A CTC of 12 lakh a year leaves about ₹91,876 a month in hand under the new tax regime. Taxable income is about 10.66 lakh, under the ₹12 lakh limit for the rebate, so tax is nil. This is close to the highest CTC where nothing is deducted for income tax.
The total in your offer letter, for one year.
Usually 40% to 50%. Your offer letter's salary breakup shows it.
The part paid only if targets are met. Leave 0 if none.
It depends on your state. Many states take ₹200 a month.
Things the company pays for that you do not receive as cash, such as health insurance or food coupons.
Monthly in-hand salary
₹91,876
An average month over the year, after tax
Gross salary a year
₹11,40,912
Income tax a year
₹0
In hand a year
₹11,02,512
How the CTC turns into pay, step by step
| Cost to company (CTC) | ₹12,00,000 |
| less the company's provident fund | -₹36,000 |
| less gratuity set aside | -₹23,088 |
| Gross salary (what you earn) | ₹11,40,912 |
| less your provident fund | -₹36,000 |
| less professional tax | -₹2,400 |
| less income tax and cess | -₹0 |
| In hand for the year | ₹11,02,512 |
How the tax was worked out. Gross salary ₹11,40,912 − standard deduction ₹75,000 = taxable income ₹10,65,912. Professional tax is not deducted before tax in the new regime. Tax on the slabs ₹46,591, less the rebate ₹46,591, plus 4% cess ₹0.
What this uses, and what it leaves out
- Income tax on the new tax regime, AY 2026-27, as published by the Income Tax Department: slabs from nil up to ₹4 lakh to 30% above ₹24 lakh, a ₹75,000 standard deduction, and no tax up to ₹12 lakh of taxable income (with relief just above it). The 2026 Budget kept these slabs. The old regime and savings deductions are not covered.
- Provident fund: 12% of basic, from you and from the company. The compulsory limit was raised to ₹25,000 a month in September 2026.
- Your payslip can differ: companies split pay in their own way (HRA, allowances, reimbursements) and tax is deducted in monthly parts. Treat this as a good estimate, not tax advice.
Everything runs in your browser. What you type is not sent anywhere.
How to: 12 LPA in Hand: Monthly Salary After Tax and PF
- 1The CTC is already set to ₹12,00,000; change it to your own offer.
- 2Check the basic pay share on your offer letter, usually 40 to 50 percent.
- 3Add any variable pay that is part of the CTC.
- 4Read the monthly in-hand and the yearly deductions.
At a glance
- CTC
- ₹12,00,000 a year
- In hand
- About ₹91,876 a month (₹11,02,512 a year)
- Income tax
- ₹0 a year
- Assumes
- Basic pay 40% of CTC, provident fund within its monthly ceiling, gratuity inside CTC, ₹200 professional tax a month, no variable pay, new tax regime
Frequently asked questions
Why is a 12 LPA salary not taxed when 12 lakh is the limit?
The limit applies to taxable income, which is after the ₹75,000 standard deduction and after the company's own PF and gratuity are removed from the CTC. A little more CTC can still be tax-free.
What happens just above this level?
Once taxable income crosses ₹12 lakh, marginal relief limits the tax to the amount above the limit, so it rises gradually and not suddenly.
More quick answers
- 3 LPA in Hand: Monthly Salary After Tax and PF
- 4 LPA in Hand: Monthly Salary After Tax and PF
- 5 LPA in Hand: Monthly Salary After Tax and PF
- 6 LPA in Hand: Monthly Salary After Tax and PF
- 7 LPA in Hand: Monthly Salary After Tax and PF
- 8 LPA in Hand: Monthly Salary After Tax and PF
- 10 LPA in Hand: Monthly Salary After Tax and PF
- 15 LPA in Hand: Monthly Salary After Tax and PF