Salary guide
12 LPA in-hand salary per month (FY 2026-27)
On a 12 LPA CTC, your in-hand salary is about ₹87,792 a month in FY 2026-27 if your employer's PF is part of the CTC, or ₹93,792 if PF is paid on top. You pay no income tax: after the ₹75,000 standard deduction, your taxable income of ₹10,53,000 stays under the ₹12 lakh rebate limit.
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- PF on top of CTC
- ₹93,792
- Income tax a year
- ₹0
- Gross a month
- ₹94,000
12 LPA salary breakdown: CTC to in-hand
Two cases, because offer letters differ: your employer's PF can be part of the CTC or paid on top of it.
Per month
| Per month | PF inside CTC | PF on top of CTC |
|---|---|---|
| CTC (cost to company) | ₹1,00,000 | ₹1,00,000 |
| Basic pay50% of CTC | ₹50,000 | ₹50,000 |
| HRA40% of basic | ₹20,000 | ₹20,000 |
| Special and other allowancesthe balance | ₹24,000 | ₹30,000 |
| Employer PF12% of basic, goes to your PF account | ₹6,000 | ₹6,000 |
| Gross salarypaid before deductions | ₹94,000 | ₹1,00,000 |
| Employee PF12% of basic | −₹6,000 | −₹6,000 |
| Professional taxKarnataka | −₹208 | −₹208 |
| Income taxnew regime, with 4% cess | ₹0 | ₹0 |
| In-hand salary | ₹87,792 | ₹93,792 |
Per year
| Per year | PF inside CTC | PF on top of CTC |
|---|---|---|
| CTC (cost to company) | ₹12,00,000 | ₹12,00,000 |
| Basic pay50% of CTC | ₹6,00,000 | ₹6,00,000 |
| HRA40% of basic | ₹2,40,000 | ₹2,40,000 |
| Special and other allowancesthe balance | ₹2,88,000 | ₹3,60,000 |
| Employer PF12% of basic, goes to your PF account | ₹72,000 | ₹72,000 |
| Gross salarypaid before deductions | ₹11,28,000 | ₹12,00,000 |
| Employee PF12% of basic | −₹72,000 | −₹72,000 |
| Professional taxKarnataka | −₹2,500 | −₹2,500 |
| Income taxnew regime, with 4% cess | ₹0 | ₹0 |
| In-hand salary | ₹10,53,500 | ₹11,25,500 |
Monthly figures are the yearly amounts divided by 12 and rounded to the rupee, so a row can be off by ₹1. In Karnataka, professional tax is ₹200 a month (₹300 in February) once monthly salary is ₹25,000 or more.
Income tax on 12 LPA under the new regime
| Per year | PF inside CTC | PF on top of CTC |
|---|---|---|
| Gross salary | ₹11,28,000 | ₹12,00,000 |
| Standard deduction | −₹75,000 | −₹75,000 |
| Taxable income | ₹10,53,000 | ₹11,25,000 |
| Tax on the slabs | ₹45,300 | ₹52,500 |
| Rebate (section 156, formerly 87A) or marginal relief | −₹45,300 | −₹52,500 |
| Health and education cess (4%) | ₹0 | ₹0 |
| Income tax for the year | ₹0 | ₹0 |
| Income tax per month | ₹0 | ₹0 |
| Taxable income | Rate |
|---|---|
| Up to ₹4 lakh | Nil |
| ₹4 lakh to ₹8 lakh | 5% |
| ₹8 lakh to ₹12 lakh | 10% |
| ₹12 lakh to ₹16 lakh | 15% |
| ₹16 lakh to ₹20 lakh | 20% |
| ₹20 lakh to ₹24 lakh | 25% |
| Above ₹24 lakh | 30% |
Assumptions and sources
- FY 2026-27 (1 April 2026 to 31 March 2027), called tax year 2026-27 under the Income-tax Act, 2025. New tax regime, which is the default. Resident individual below 60 with salary as the only income.
- Basic pay is 50% of CTC, HRA is 40% of basic and the rest is special allowance. The new regime gives no HRA exemption, so this split does not change your tax.
- PF is 12% of basic from you and 12% from your employer, on the full basic pay. Your basic pay is above the ₹25,000 PF wage ceiling, so your employer may restrict PF to ₹3,000 a month (and PF is optional if you join above the ceiling); then your in-hand pay is higher.
- Standard deduction of ₹75,000. Rebate under section 156 makes tax nil when taxable income is ₹12 lakh or less, with marginal relief just above it. 4% health and education cess on the tax.
- Professional tax at Karnataka rates: ₹2,500 a year. Other states have different rates, and some have none. It is not deductible under the new regime.
- Not included: gratuity, variable pay, joining bonus, insurance, meal cards or an employer NPS contribution. Check your offer letter for these.
Sources, checked 3 Nov 2026Finance Bill 2026 memorandum: rates of income-tax for tax year 2026-27Income-tax Act, 2025, section 156: rebateIncome-tax Act, 2025, section 19: standard deductionFAQs: revision of the EPFO wage ceiling from ₹15,000 to ₹25,000 a monthProfessional tax: employer portal and ratesThe Code on Wages, 2019, section 2(y): wages
Does 12 LPA cross the ₹12 lakh rebate limit?
No. The limit applies to taxable income, not to CTC. With PF inside the CTC your gross salary is ₹11,28,000, and after the ₹75,000 standard deduction your taxable income is ₹10,53,000. Even with PF on top, it is ₹11,25,000. Both are under the limit, so you pay no income tax.
Is 12 LPA a good salary?
At about ₹87,792 a month in hand with no income tax, 12 LPA sits just below the point where tax starts: salary above ₹12.75 lakh a year. Above it, tax applies, with marginal relief to soften the jump. Judge the offer on in-hand pay, your costs and the role.
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Questions freshers ask
About ₹87,792 a month when the employer's PF is inside the CTC, or ₹93,792 when PF is paid on top. Before any deductions, 12 LPA is ₹1,00,000 a month.
None under the new regime in FY 2026-27. Your taxable income is ₹10,53,000 after the ₹75,000 standard deduction, and the section 156 rebate (formerly 87A) cancels the tax when taxable income is ₹12 lakh or less.
₹6,000 a month from your salary (12% of a ₹50,000 basic), and your employer adds the same amount. Your basic pay is above the ₹25,000 PF wage ceiling, so your employer may restrict PF to ₹3,000 a month (and PF is optional if you join above the ceiling); then your in-hand pay is higher.
Yes, for salary income under the new regime in FY 2026-27. Your taxable income of ₹10,53,000 is under the ₹12 lakh rebate limit. Tax would start once your salary crosses ₹12.75 lakh a year.