Statutory Engine · FY 2026–27 Income Tax Amendments

Precision Indian Salary & Tax Intelligence.

Real-time reconciliation of monthly net bank deposits, EPF retirement allocations, state professional tax, and dual-regime tax optimization.

Salary & Compensation Parameters
12 LPA
FY 2026–27 · NEW REGIME

Estimated Net In-Hand Monthly Paycheck

₹94,477 / mo
In-Hand (94.5%)TDS (0.0%)PF (1.8%)Ben. (3.7%)
Annual Net
₹11,33,723
Income Tax (TDS)
₹0
Retention Rate
94.5%
Monthly Take-Home
₹94,477
94.5% In-Hand
In-Hand Bank Cash
94.5%
₹11,33,723/yr₹94,477/mo
Employee PF & PT
1.8%
₹21,600/yr₹1,800/mo
Employer Benefits (CTC)
3.7%
₹44,677/yr₹3,723/mo

Offer Quality Grade & Compensation Audit

Automated structure audit assessing basic salary stability, bonus risk, and employer CTC padding.

Structure GradeA+
Basic Salary Ratio
40.0% of CTC

Healthy basic pay. Guarantees stable monthly cash flow.

Variable Bonus Risk
0.0% of CTC

Low performance dependency. Most pay is guaranteed cash.

CTC Benefits Padding
3.7% bundled

Employer EPF (₹21,600) & Gratuity (₹23,077) are bundled inside CTC.

Net Cash Retention
94.5% in bank

You take home ₹94,477 out of ₹1,00,000 monthly CTC budget.

Scenario Comparison: Old vs New Regime

Live statutory duel assessing both regimes under FY 2026–27 tax rules with inflation-adjusted (6%) purchasing power.

Itemized Deductions Base

Old Tax Regime

Gross Salary₹11,55,323
Standard Deduction (Old)-₹50,000
Itemized Deductions (80C, 80D, HRA, 24b)-₹0
Annual Income Tax-₹1,49,860
Net Monthly Take-Home
₹81,989
Real (6% Inflation Adjusted)
₹77,348/mo
Automated & SimplifiedRecommended (+₹1,49,860/yr)

New Tax Regime

Gross Salary₹11,55,323
Standard Deduction (Automated)-₹75,000
Itemized Deductions (80C, 80D, HRA)₹0 (Disallowed u/s 115BAC)
Annual Income Tax-₹0
Net Monthly Take-Home
₹94,477
Real (6% Inflation Adjusted)
₹89,129/mo

Old Regime Itemized Deductions & Rent Exemption Matrix

Total Deductions: ₹0
New Tax Regime is currently active: Under Section 115BAC, itemized deductions (80C, 80D, HRA, Section 24b) are not subtracted from your salary. The inputs below are simulated exclusively to calculate your Old Regime comparison and crossover point.

Itemized Payroll Accounting Ledger

Exact statutory reconciliation from Total CTC to Net Monthly Bank Credit.

Component DescriptionAnnual AmountMonthly Average
1. Earnings & Cash Gross
Basic Salary
40% of fixed CTC
₹4,80,000₹40,000
House Rent Allowance (HRA)
50% of basic
₹2,40,000₹20,000
Special / Flexi Allowance
Balancing component
₹4,35,323₹36,277
Cash Gross Salary (A)₹11,55,323₹96,277
2. Payroll Deductions & TDS
Employee PF (Retirement Fund)
12% of basic / statutory cap
-₹21,600-₹1,800
State Professional Tax
State schedule
-₹0-₹0
Income Tax (TDS on Salary)
FY 2026–27 tax rate
-₹0-₹0
Net In-Hand Bank Transfer (A − B)
Direct deposit into savings account
₹11,33,723₹94,477
3. Employer Benefits Bundled in CTC
Employer PF Contribution
Retirement corpus
+₹21,600+₹1,800
Gratuity Provision (15/26)
Payable after 5 yrs
+₹23,077+₹1,923
Total Cost to Company (CTC)₹12,00,000₹1,00,000

50/30/20 Financial Planning

Automated budget breakdown allocating your ₹94,477/mo in-hand salary.

Horizon:
50% Essential Needs
₹47,238

Rent, EMIs, Groceries, Utilities, Insurance

30% Discretionary Wants
₹28,343

Dining, Shopping, Travel, Entertainment, Gadgets

20% Wealth & SIP
₹18,895

Index Funds, Mutual Funds, Emergency Reserves

🚀 10-Year Wealth Projection (20% Monthly SIP)
₹43,90,136

Investing ₹18,895/mo for 10 years (₹22,67,446 total principal) creates ₹21,22,690 in pure compound interest.

Home Loan Eligibility & Affordability Power

Estimate maximum borrowing power based on standard banking FOIR (40% of take-home salary).

Tenure:
Max Eligible Loan Amount
₹43,54,662

Based on 40% FOIR (₹37,791/mo max EMI) at 8.5% interest.

Recommended Safe Monthly EMI
₹37,791 / mo

Leaves ₹56,686/mo for groceries, utilities, and investments.

Total 20-Year Repayment
₹90,69,785
Principal: ₹43,54,662Interest: ₹47,15,123

Standard Indian CTC to In-Hand Benchmarks (FY 2026–27)

Quick reference guide comparing popular annual salary packages under the New Tax Regime with standard EPF and Gratuity assumptions. Click any row to calculate.

Annual CTCMonthly Take-HomeAnnual In-HandIncome Tax (TDS)CTC Retained
6 LPA (₹6,00,000)₹45,438₹5,45,262₹090.9%
8 LPA (₹8,00,000)₹61,785₹7,41,415₹092.7%
10 LPA (₹10,00,000)₹78,131₹9,37,569₹093.8%
12 LPA (₹12,00,000)₹94,477₹11,33,723₹094.5%
15 LPA (₹15,00,000)₹1,11,527₹13,38,324₹89,63089.2%
18 LPA (₹18,00,000)₹1,31,923₹15,83,075₹1,39,11087.9%
20 LPA (₹20,00,000)₹1,44,869₹17,38,428₹1,79,91086.9%
25 LPA (₹25,00,000)₹1,75,695₹21,08,343₹3,00,38084.3%
35 LPA (₹35,00,000)₹2,32,119₹27,85,432₹6,04,06079.6%
50 LPA (₹50,00,000)₹3,16,466₹37,97,586₹10,63,06076.0%
75 LPA (₹75,00,000)₹4,41,808₹53,01,699₹20,10,87070.7%
1.00 Cr (₹1,00,00,000)₹5,76,010₹69,12,122₹28,52,37069.1%
1.50 Cr (₹1,50,00,000)₹8,27,235₹99,26,818₹47,41,52066.2%

Frequently Asked Questions on Payroll & Taxes

Statutory deductions, gratuity provisions, and FY 2026–27 central tax rules explained clearly.

What is the difference between CTC and In-Hand Salary?

CTC (Cost to Company) is the entire amount an employer spends to employ you, including non-cash benefits like employer EPF (12%) and gratuity provision (4.81% of basic). In-Hand Salary is the actual cash credited to your bank account after subtracting employee EPF, state professional tax, and income tax TDS.

Why is in-hand salary lower than CTC divided by 12?

Dividing CTC by 12 gives an inflated number because CTC bundles mandatory employer contributions that never reach your paycheck. Furthermore, employee PF (up to ₹1,800 or 12% of basic), State Professional Tax (up to ₹200/mo), and estimated income tax TDS are withheld monthly at source.

Which tax regime is better for FY 2026–27?

For most salaried employees with income up to ₹12.75 Lakhs, the New Tax Regime is definitively superior due to the ₹75,000 standard deduction and Section 87A full tax rebate (zero tax up to ₹12L). The Old Regime only wins if your total eligible exemptions (80C, 80D, HRA, home loan interest) exceed ₹3.75–₹4.0 Lakhs.

How is Gratuity calculated and when is it payable?

Under the Payment of Gratuity Act, gratuity is computed using (15 × Last Drawn Basic × Years of Service) / 26. While employers bundle approximately 4.81% of Basic salary annually into your CTC, it is legally payable only upon completing 5 years of continuous service.