On a ₹5 LPA CTC you take home about ₹37,667 a month, or ₹4,52,000 a year: 90% of the CTC. There is no income tax at this salary: taxable income comes to ₹4,01,000, under the ₹12 lakh limit, so the rebate cancels the ₹50 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) | ₹16,667 |
| HRA (50% of basic) | ₹8,333 |
| Special allowance | ₹14,667 |
| Gross salary | ₹39,667 |
| Deductions | |
| Your PF (12% of basic, up to ₹3,000) | ₹2,000 |
| Income tax (incl. 4% cess) | ₹0 |
| In hand | ₹37,667 |
Your employer also pays ₹2,000 a month into your PF account. It is part of the ₹41,667 monthly CTC but never reaches your bank, which is why the gross salary on the slip is ₹39,667 and not the full CTC divided by 12.
| Annual CTC | ₹5,00,000 |
| Less: employer PF for the year (not taxed) | − ₹24,000 |
| Less: standard deduction | − ₹75,000 |
| Taxable income | ₹4,01,000 |
| Slab | Rate | Your income in it | Tax |
|---|---|---|---|
| Up to ₹4,00,000 | 0% | ₹4,00,000 | ₹0 |
| ₹4,00,001 – ₹8,00,000 | 5% | ₹1,000 | ₹50 |
| Tax by the slabs | ₹50 | ||
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 ₹50. Tax payable: zero.
Nothing changes at ₹5 LPA. Basic is ₹16,667 a month, under the ₹25,000 wage ceiling, so PF is 12% of the whole basic either way: ₹2,000 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 | ₹41,667 |
| Basic salary | ₹16,667 |
| HRA | ₹8,333 |
| Special allowance | ₹14,667 |
| Employer PF (capped) | - ₹2,000 |
| Employee PF | - ₹2,000 |
| Tax (incl. cess) | - ₹0 |
| In-hand | ₹37,667 |
Approximation. New regime, FY 2026-27. Doesn't account for HRA exemption, Sec 80C deductions, or company-specific perks.