What is the in-hand salary for a ₹12 LPA package?
A ₹12,00,000 CTC pays roughly ₹90,200 a month in hand, taking basic at 40% of CTC and professional tax at ₹200 a month. Income tax is nil: gross salary is ₹11,42,000 and taxable income falls under the ₹12,00,000 rebate limit. The deductions are your own PF of ₹57,600 and professional tax of ₹2,400 a year.
Educational information, not investment advice · Muktify is not SEBI-registered
In-Hand Salary Calculator (FY 2025-26)
CTC to monthly take-home — after EPF, income tax (new regime) and professional tax.
Employer's PF included in CTC?
₹200 in most states; 0 in Delhi, UP and a few others
Monthly in-hand
₹90,200
₹10.82L per year · 90% of your CTC reaches your account
Where the rest goes (per year)
Your EPF isn't lost — ₹1.15L/yr (yours + employer's) builds your retirement corpus.
Assumptions
- New tax regime, FY 2025-26 (₹75,000 standard deduction, 87A rebate). Using old-regime deductions? Compare with the Tax Regime Calculator.
- EPF at 12% of basic for you and your employer.
- Not modelled: gratuity accrual, ESI, NPS, variable pay, perks, surcharge above ₹50L.
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The breakdown, line by line
Start with CTC of ₹12,00,000, basic at 40% (₹4,80,000) and the employer's PF inside CTC. The employer's contribution is 12% of basic, ₹57,600, which leaves a gross salary of ₹11,42,400.
Now the deductions from gross. Your own PF is the same ₹57,600. Income tax under the FY 2025-26 new regime is nil — taxable income is ₹11,42,400 minus the ₹75,000 standard deduction, or ₹10,67,400, comfortably under the ₹12,00,000 limit at which Section 87A gives a full rebate. Professional tax at ₹200 a month is ₹2,400.
In-hand is ₹11,42,400 − ₹57,600 − ₹2,400 = ₹10,82,400 a year, or ₹90,200 a month. That is 90.2% of CTC reaching you, which is about as high as the ratio gets — this package sits just under the point where income tax starts.
₹12,00,000 CTC → ₹11,42,400 gross → ₹10,82,400 in hand (₹90,200/month)
Why the tax is zero, and where it stops being zero
Under FY 2025-26 new-regime rules, Section 87A gives a full rebate when taxable income is ₹12,00,000 or less. With the ₹75,000 standard deduction, that means gross salary up to ₹12,75,000 pays no income tax at all.
Working backwards through the PF step, at 40% basic a CTC of roughly ₹13,39,000 produces exactly that ₹12,75,000 gross. Below it, nil. Just above it, marginal relief keeps the tax to a few hundred rupees rather than a cliff — at ₹13,40,000 CTC the annual tax is ₹707. The real jump comes later: by ₹15,00,000 CTC the tax is ₹86,268.
How the basic percentage moves the answer
PF is 12% of basic, not of CTC, so the labelling of your salary structure changes your monthly credit even though nothing about the package changed. On this ₹12,00,000 CTC: basic at 30% gives about ₹92,600 a month, at 40% ₹90,200, and at 50% ₹87,800.
The ₹4,800 monthly spread between the ends is not money lost. A higher basic sends more into EPF each month and raises the gratuity you would be entitled to on leaving, at the cost of cash now. Which trade suits you is your call — this page only shows the arithmetic on each setting.
The same maths across other packages
At basic 40%, employer PF inside CTC and ₹200 a month of professional tax, the monthly in-hand ladder runs: ₹6 LPA → ₹45,000. ₹8 LPA → ₹60,067. ₹10 LPA → ₹75,133. ₹12 LPA → ₹90,200. ₹15 LPA → ₹1,05,611. ₹20 LPA → ₹1,36,097. ₹25 LPA → ₹1,64,192.
Notice what happens between ₹12 LPA and ₹15 LPA: CTC rises 25% but monthly in-hand rises only 17%, because income tax appears in that gap. The share of CTC reaching you falls from 90.2% at ₹12 LPA to 84.5% at ₹15 LPA and 78.8% at ₹25 LPA. Every one of these figures assumes the new regime and no variable pay; change the basic percentage or your state and they move.
Frequently asked questions
What is the in-hand salary for 12 LPA?
About ₹90,200 a month, with basic at 40% of CTC and professional tax of ₹200 a month. Income tax is nil under the FY 2025-26 new regime, so the only deductions are your own PF of ₹57,600 a year and professional tax.
Do I pay income tax on a ₹12 lakh CTC?
Not under the new regime. Gross salary of ₹11,42,400 less the ₹75,000 standard deduction leaves ₹10,67,400 of taxable income, below the ₹12,00,000 limit at which Section 87A gives a full rebate. TDS should be nil.
At what CTC does income tax start under the new regime?
Gross salary above ₹12,75,000 starts attracting tax, which at 40% basic corresponds to a CTC of roughly ₹13,39,000. Marginal relief keeps the amount very small just above the line — ₹707 a year at ₹13,40,000 CTC.
Why is my 12 LPA in-hand less than ₹90,000?
Usual causes are a higher basic percentage raising the PF deduction, variable pay counted inside the ₹12 lakh but paid annually, employer NPS or insurance inside CTC, or professional tax higher than ₹200 in your state.
Is 12 LPA a good salary in India?
That depends on your costs rather than the number. A more useful question is how many months of your own expenses it covers and what it leaves over monthly — which the free Muktify scan works out from figures you enter.
How much PF is deducted on a ₹12 lakh package?
With basic at 40% of CTC, basic is ₹4,80,000, so your own contribution at 12% is ₹57,600 a year or ₹4,800 a month. Your employer contributes the same amount, from inside your CTC.
Related
- Salary in-hand calculator →
- How do I calculate in-hand salary from CTC? →
- How much tax on a ₹15 lakh salary? →
- How much PF is deducted from my salary? →
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Start the free scan →Last updated 2026-08-01. Figures reflect FY 2025-26 and are educational estimates, not advice. Muktify is not SEBI-registered and never recommends or ranks any instrument.