On a ₹18 LPA CTC you take home about ₹1,32,057 a month, or ₹15,84,688 a year: 88% of the CTC. Income tax takes ₹11,943 a month (₹1,43,312 a year), worked out below slab by slab.
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) | ₹60,000 |
| HRA (50% of basic) | ₹30,000 |
| Special allowance | ₹57,000 |
| Gross salary | ₹1,47,000 |
| Deductions | |
| Your PF (12% of basic, up to ₹3,000) | ₹3,000 |
| Income tax (incl. 4% cess) | ₹11,943 |
| In hand | ₹1,32,057 |
Your employer also pays ₹3,000 a month into your PF account. It is part of the ₹1,50,000 monthly CTC but never reaches your bank, which is why the gross salary on the slip is ₹1,47,000 and not the full CTC divided by 12.
| Annual CTC | ₹18,00,000 |
| Less: employer PF for the year (not taxed) | − ₹36,000 |
| Less: standard deduction | − ₹75,000 |
| Taxable income | ₹16,89,000 |
| 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% | ₹4,00,000 | ₹40,000 |
| ₹12,00,001 – ₹16,00,000 | 15% | ₹4,00,000 | ₹60,000 |
| ₹16,00,001 – ₹20,00,000 | 20% | ₹89,000 | ₹17,800 |
| Tax by the slabs | ₹1,37,800 | ||
Taxable income is ₹4,89,000 over ₹12 lakh, more than the slab tax itself, so neither the rebate nor marginal relief applies and the slab tax stands. The 4% health and education cess adds ₹5,512, for ₹1,43,312 a year — ₹11,943 a month on your slip.
Basic at ₹18 LPA is ₹60,000 a month, above the ₹25,000 wage ceiling. Many large employers take PF on the whole basic anyway: then it is ₹7,200 from you and ₹7,200 from them, instead of ₹3,000 each. In hand falls to ₹1,24,531 a month — ₹7,526 less — while ₹8,400 more goes into your PF account every month, and income tax drops to ₹11,069 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.
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| Total CTC | ₹1,50,000 |
| Basic salary | ₹60,000 |
| HRA | ₹30,000 |
| Special allowance | ₹57,000 |
| Employer PF (capped) | - ₹3,000 |
| Employee PF | - ₹3,000 |
| Tax (incl. cess) | - ₹11,943 |
| In-hand | ₹1,32,057 |
Approximation. New regime, FY 2026-27. Doesn't account for HRA exemption, Sec 80C deductions, or company-specific perks.