On a ₹13 LPA CTC you take home about ₹1,02,333 a month, or ₹12,28,000 a year: 94% of the CTC. There is no income tax at this salary: taxable income comes to ₹11,89,000, under the ₹12 lakh limit, so the rebate cancels the ₹58,900 the slabs would charge.
New tax regime, FY 2026-27 (slabs unchanged by Budget 2026) · basic 40% of CTC · PF on the ₹25,000 wage ceiling
| Earnings | |
|---|---|
| Basic (40% of CTC) | ₹43,333 |
| HRA (50% of basic) | ₹21,667 |
| Special allowance | ₹40,333 |
| Gross salary | ₹1,05,333 |
| Deductions | |
| Your PF (12% of basic, up to ₹3,000) | ₹3,000 |
| Income tax (incl. 4% cess) | ₹0 |
| In hand | ₹1,02,333 |
Your employer also pays ₹3,000 a month into your PF account. It is part of the ₹1,08,333 monthly CTC but never reaches your bank, which is why the gross salary on the slip is ₹1,05,333 and not the full CTC divided by 12.
| Annual CTC | ₹13,00,000 |
| Less: employer PF for the year (not taxed) | − ₹36,000 |
| Less: standard deduction | − ₹75,000 |
| Taxable income | ₹11,89,000 |
| Slab | Rate | Your income in it | Tax |
|---|---|---|---|
| Up to ₹4,00,000 | 0% | ₹4,00,000 | ₹0 |
| ₹4,00,001 – ₹8,00,000 | 5% | ₹4,00,000 | ₹20,000 |
| ₹8,00,001 – ₹12,00,000 | 10% | ₹3,89,000 | ₹38,900 |
| Tax by the slabs | ₹58,900 | ||
Taxable income is ₹12 lakh or less, so the rebate (up to ₹60,000, the one most people know as Section 87A) cancels the whole ₹58,900. Tax payable: zero.
Basic at ₹13 LPA is ₹43,333 a month, above the ₹25,000 wage ceiling. Many large employers take PF on the whole basic anyway: then it is ₹5,200 from you and ₹5,200 from them, instead of ₹3,000 each. In hand falls to ₹97,933 a month — ₹4,400 less — while ₹4,400 more goes into your PF account every month. The PF line on your offer letter or payslip tells you which one you have.
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| Total CTC | ₹1,08,333 |
| Basic salary | ₹43,333 |
| HRA | ₹21,667 |
| Special allowance | ₹40,333 |
| Employer PF (capped) | - ₹3,000 |
| Employee PF | - ₹3,000 |
| Tax (incl. cess) | - ₹0 |
| In-hand | ₹1,02,333 |
Approximation. New regime, FY 2026-27. Doesn't account for HRA exemption, Sec 80C deductions, or company-specific perks.