4 LPA in Hand: Monthly Salary After Tax and PF
The short answer
A CTC of 4 lakh a year leaves about ₹29,292 a month in hand under the new tax regime. Tax is still nil. Offer letters at this level often show allowances in a long list, so ask what the basic pay is, because your provident fund is 12 percent of it.
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
₹29,292
An average month over the year, after tax
Gross salary a year
₹3,73,104
Income tax a year
₹0
In hand a year
₹3,51,504
How the CTC turns into pay, step by step
| Cost to company (CTC) | ₹4,00,000 |
| less the company's provident fund | -₹19,200 |
| less gratuity set aside | -₹7,696 |
| Gross salary (what you earn) | ₹3,73,104 |
| less your provident fund | -₹19,200 |
| less professional tax | -₹2,400 |
| less income tax and cess | -₹0 |
| In hand for the year | ₹3,51,504 |
How the tax was worked out. Gross salary ₹3,73,104 − standard deduction ₹75,000 = taxable income ₹2,98,104. Professional tax is not deducted before tax in the new regime. Tax on the slabs ₹0, 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.
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How to: 4 LPA in Hand: Monthly Salary After Tax and PF
- 1The CTC is already set to ₹4,00,000; 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
- ₹4,00,000 a year
- In hand
- About ₹29,292 a month (₹3,51,504 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
How does the basic pay change my take-home?
A lower basic with more allowances means less PF is cut, so the monthly in-hand is higher, though your PF savings and gratuity grow more slowly. Try different basic percentages in the tool.
Is 4 LPA enough to live on in a big city?
It depends on rent. In many cities a shared flat can take a third or more of the monthly figure, so work out what is left with your own costs in the Compare Job Offers tool.
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