On a ₹6.5 LPA CTC you take home about ₹48,967 a month, or ₹5,87,600 a year: 90% of the CTC. There is no income tax at this salary: taxable income comes to ₹5,43,800, under the ₹12 lakh limit, so the rebate cancels the ₹7,190 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) | ₹21,667 |
| HRA (50% of basic) | ₹10,833 |
| Special allowance | ₹19,067 |
| Gross salary | ₹51,567 |
| Deductions | |
| Your PF (12% of basic, up to ₹3,000) | ₹2,600 |
| Income tax (incl. 4% cess) | ₹0 |
| In hand | ₹48,967 |
Your employer also pays ₹2,600 a month into your PF account. It is part of the ₹54,167 monthly CTC but never reaches your bank, which is why the gross salary on the slip is ₹51,567 and not the full CTC divided by 12.
| Annual CTC | ₹6,50,000 |
| Less: employer PF for the year (not taxed) | − ₹31,200 |
| Less: standard deduction | − ₹75,000 |
| Taxable income | ₹5,43,800 |
| Slab | Rate | Your income in it | Tax |
|---|---|---|---|
| Up to ₹4,00,000 | 0% | ₹4,00,000 | ₹0 |
| ₹4,00,001 – ₹8,00,000 | 5% | ₹1,43,800 | ₹7,190 |
| Tax by the slabs | ₹7,190 | ||
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 ₹7,190. Tax payable: zero.
Nothing changes at ₹6.5 LPA. Basic is ₹21,667 a month, under the ₹25,000 wage ceiling, so PF is 12% of the whole basic either way: ₹2,600 from you and the same from your employer.
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| Total CTC | ₹54,167 |
| Basic salary | ₹21,667 |
| HRA | ₹10,833 |
| Special allowance | ₹19,067 |
| Employer PF (capped) | - ₹2,600 |
| Employee PF | - ₹2,600 |
| Tax (incl. cess) | - ₹0 |
| In-hand | ₹48,967 |
Approximation. New regime, FY 2026-27. Doesn't account for HRA exemption, Sec 80C deductions, or company-specific perks.