On a ₹4.5 LPA CTC you take home about ₹33,900 a month, or ₹4,06,800 a year: 90% of the CTC. There is no income tax at this salary: taxable income comes to ₹3,53,400, under the ₹12 lakh limit, so the rebate cancels the ₹0 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) | ₹15,000 |
| HRA (50% of basic) | ₹7,500 |
| Special allowance | ₹13,200 |
| Gross salary | ₹35,700 |
| Deductions | |
| Your PF (12% of basic, up to ₹3,000) | ₹1,800 |
| Income tax (incl. 4% cess) | ₹0 |
| In hand | ₹33,900 |
Your employer also pays ₹1,800 a month into your PF account. It is part of the ₹37,500 monthly CTC but never reaches your bank, which is why the gross salary on the slip is ₹35,700 and not the full CTC divided by 12.
| Annual CTC | ₹4,50,000 |
| Less: employer PF for the year (not taxed) | − ₹21,600 |
| Less: standard deduction | − ₹75,000 |
| Taxable income | ₹3,53,400 |
| Slab | Rate | Your income in it | Tax |
|---|---|---|---|
| Up to ₹4,00,000 | 0% | ₹3,53,400 | ₹0 |
| Tax by the slabs | ₹0 | ||
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 ₹0. Tax payable: zero.
Nothing changes at ₹4.5 LPA. Basic is ₹15,000 a month, under the ₹25,000 wage ceiling, so PF is 12% of the whole basic either way: ₹1,800 from you and the same from your employer.
Offer Roast compares it with the market, flags hidden traps and red flags, and writes you a negotiation script (Pro).
| Total CTC | ₹37,500 |
| Basic salary | ₹15,000 |
| HRA | ₹7,500 |
| Special allowance | ₹13,200 |
| Employer PF (capped) | - ₹1,800 |
| Employee PF | - ₹1,800 |
| Tax (incl. cess) | - ₹0 |
| In-hand | ₹33,900 |
Approximation. New regime, FY 2026-27. Doesn't account for HRA exemption, Sec 80C deductions, or company-specific perks.