FY 2026-27 · India

5 LPA in-hand salary: about INR 35,457 a month.

On a CTC of INR 5,00,000 a year you take home about INR 35,457 a month under the new tax regime and INR 35,457 under the old regime.

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What changes at 5 LPA

A 5 LPA CTC is well short of the old regime's INR 5 lakh line, which counts taxable income.

A CTC of INR 5,00,000 is not INR 5,00,000 of taxable income. Your employer's PF of INR 30,000 and the INR 12,025 set aside for gratuity sit inside the CTC but are never paid to you, so gross salary is INR 4,57,975. The old regime then takes off its INR 50,000 standard deduction, INR 2,500 of professional tax and your own INR 30,000 of PF under section 123, which leaves INR 3,75,475.

That is INR 1,24,525 under the line, so the rebate cancels all INR 6,274 of the old regime's slab tax. With this structure the old regime stays free of income tax up to a CTC of about 6.46 LPA, not 5 LPA.

The new regime has nothing to cancel at all. Its taxable income of INR 3,82,975 is inside the first INR 4 lakh, which it taxes at 0%, and its first slab tax appears at a CTC of about 5.19 LPA, where its own, larger rebate takes over.

The breakdown

From a 5 LPA CTC to your bank account.

Basic pay at 50% of CTC, PF at 12% of full basic for you and your employer, gratuity at 4.81% of basic inside the CTC, the Maharashtra rate of professional tax for men, no variable pay and no old regime deductions beyond PF and professional tax.

Each month

5 LPA salary breakdown under both regimes, monthly
Line	New regime	Old regime
Gross salary	INR 38,165	INR 38,165
Employee PF	-INR 2,500	-INR 2,500
Professional tax	-INR 208	-INR 208
Income tax and cess	INR 0	INR 0
In-hand	INR 35,457	INR 35,457

For the year

5 LPA salary breakdown under both regimes, yearly
Line	New regime	Old regime
CTC	INR 5,00,000	INR 5,00,000
Employer PF	-INR 30,000	-INR 30,000
Gratuity provision	-INR 12,025	-INR 12,025
Gross salary	INR 4,57,975	INR 4,57,975
Employee PF	-INR 30,000	-INR 30,000
Professional tax	-INR 2,500	-INR 2,500
Income tax and cess	INR 0	INR 0
In-hand for the year	INR 4,25,475	INR 4,25,475

Questions

5 LPA in-hand salary, answered.

Is a 5 LPA salary taxable under the old regime?

No. Its taxable income at this CTC is INR 3,75,475, under the INR 5 lakh rebate limit, because the employer's PF, gratuity, the standard deduction, professional tax and your own PF all come off first.

Why is 5 LPA in hand less than INR 41,667 a month?

Because a twelfth of the CTC is not your pay. About INR 3,502 a month of it is your employer's PF and gratuity, which never reach the payslip, and INR 2,500 of PF and about INR 208 of professional tax come off the INR 38,165 that does, leaving INR 35,457 under either regime.

When does the new regime start charging tax above 5 LPA?

Its first slab tax appears at a CTC of about 5.19 LPA, and with this structure its rebate keeps cancelling it until about 13.92 LPA, so in practice the new regime takes no income tax below that.

Other levels and sources

Compare another CTC.

Figures are estimates from the FY 2026-27 rules, checked on 22 October 2026. Your employer's payroll and salary structure can change them, and this is not tax advice.

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