On a ₹13.5 LPA CTC you take home about ₹1,03,120 a month, or ₹12,37,440 a year: 92% of the CTC. Income tax is only ₹3,380 a month: taxable income is ₹39,000 over ₹12 lakh, and marginal relief caps the tax at that amount (plus cess) instead of the ₹65,850 the slabs alone 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) | ₹45,000 |
| HRA (50% of basic) | ₹22,500 |
| Special allowance | ₹42,000 |
| Gross salary | ₹1,09,500 |
| Deductions | |
| Your PF (12% of basic, up to ₹3,000) | ₹3,000 |
| Income tax (incl. 4% cess) | ₹3,380 |
| In hand | ₹1,03,120 |
Your employer also pays ₹3,000 a month into your PF account. It is part of the ₹1,12,500 monthly CTC but never reaches your bank, which is why the gross salary on the slip is ₹1,09,500 and not the full CTC divided by 12.
| Annual CTC | ₹13,50,000 |
| Less: employer PF for the year (not taxed) | − ₹36,000 |
| Less: standard deduction | − ₹75,000 |
| Taxable income | ₹12,39,000 |
| 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% | ₹4,00,000 | ₹40,000 |
| ₹12,00,001 – ₹16,00,000 | 15% | ₹39,000 | ₹5,850 |
| Tax by the slabs | ₹65,850 | ||
Taxable income is above ₹12 lakh, so the rebate no longer applies, but marginal relief does: the tax cannot be more than the ₹39,000 earned above ₹12 lakh. That replaces the ₹65,850 with ₹39,000; 4% cess (₹1,560) takes it to ₹40,560 a year, ₹3,380 a month.
Basic at ₹13.5 LPA is ₹45,000 a month, above the ₹25,000 wage ceiling. Many large employers take PF on the whole basic anyway: then it is ₹5,400 from you and ₹5,400 from them, instead of ₹3,000 each. In hand falls to ₹1,00,816 a month — ₹2,304 less — while ₹4,800 more goes into your PF account every month, and income tax drops to ₹884 a month because the employer's larger share is not taxed. The PF line on your offer letter or payslip tells you which one you have.
Offer Roast compares it with the market, flags hidden traps and red flags, and writes you a negotiation script (Pro).
| Total CTC | ₹1,12,500 |
| Basic salary | ₹45,000 |
| HRA | ₹22,500 |
| Special allowance | ₹42,000 |
| Employer PF (capped) | - ₹3,000 |
| Employee PF | - ₹3,000 |
| Tax (incl. cess) | - ₹3,380 |
| In-hand | ₹1,03,120 |
Approximation. New regime, FY 2026-27. Doesn't account for HRA exemption, Sec 80C deductions, or company-specific perks.