In-hand (take-home) salary breakdown for a ₹40 LPA CTC in India, compared across the new and old tax regimes.
Assuming ₹1.5L in claimed deductions (a full Section 80C).
For a ₹40 LPA CTC under the new tax regime, the estimated in-hand salary is about ₹2,36,056 per month (₹28.33 LPA per year), after EPF, gratuity, professional tax, and income tax. Under the old regime with typical deductions (₹1.5L under Section 80C), it's about ₹2,19,140 per month.
On a ₹40 LPA CTC, the estimated annual income tax (including cess) is ₹7,04,000 under the new regime, versus ₹9,07,000 under the old regime (assuming ₹1.5L in claimed deductions). Actual tax depends on your exact Basic/HRA structure and deductions.
At ₹40 LPA, the new regime gives a higher in-hand salary (₹2,36,056/month vs ₹2,19,140/month) unless your actual claimable deductions exceed the ₹1.5L assumed here — e.g. a home loan, higher HRA, or additional 80C/80D investments could tip it toward the old regime.
Assuming Basic pay is 40% of CTC (₹16.00 LPA), your own EPF contribution is about ₹1.92 LPA per year (12% of Basic), matched by an equal employer contribution that's already included in your CTC but never reaches your bank account.
Rough estimate only — assumes Basic salary is 40% of CTC. Your actual in-hand depends on your employer's exact salary structure.