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In-Hand Salary for ₹10 LPA CTC — Tax Year 2026-27 New Tax Regime

₹10 LPA is the hallmark mid-level compensation tier in India. Under the New Tax Regime for Tax Year 2026-27, this page calculates your exact monthly take-home after PF, professional tax, and income tax.

Direct Answer
Income Tax Department of India — Income Tax Act, 2025

Direct Summary: In-Hand Salary for ₹10 LPA CTC — Tax Year 2026-27 New Tax Regime

₹10 LPA is the hallmark mid-level compensation tier in India. Under the New Tax Regime for Tax Year 2026-27, this page calculates your exact monthly take-home after PF, professional tax, and income tax.

Monthly Take-Home = [Gross Salary − Employee PF (12% of basic) − Professional Tax (₹200/mo) − Applicable Income Tax − 4% Cess] ÷ 12.
  • Key Takeaway: Because taxable income is ₹9.25 Lakh (after ₹75,000 standard deduction), income tax under the New Regime is completely waived via Section 87A rebate.
  • Key Rule: CTC: ₹10,00,000 per annum
  • Key Rule: Standard deduction: ₹75,000
New Regime Monthly Take-Home
₹79,533.33
Annual Tax: ₹0.00
Old Regime Monthly Take-Home
₹73,624.42
Annual Tax: ₹70,907.00
New Regime is typically more beneficial for ₹10 LPA CTC (Annual PF: ₹21,600.00)
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Key Takeaway

Because taxable income is ₹9.25 Lakh (after ₹75,000 standard deduction), income tax under the New Regime is completely waived via Section 87A rebate.

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How This Calculation Works

In-hand salary is computed by deducting statutory employee contributions and taxes from your Cost to Company (CTC). Under the New Tax Regime for Tax Year 2026-27 (Income Tax Act, 2025), a standard deduction of ₹75,000 is subtracted from gross salary. Section 87A rebate provides relief of up to ₹60,000 for taxable income up to ₹12 Lakh, ensuring zero tax liability for salaried income up to ₹12.75 Lakh.

Standard Indian FormulaMonthly Take-Home = [Gross Salary − Employee PF (12% of basic) − Professional Tax (₹200/mo) − Applicable Income Tax − 4% Cess] ÷ 12.

Section 115BAC Salary & Tax Slab Breakdown

Detailed CTC to In-Hand Salary Breakdown under Tax Year 2026-27 New Tax Regime
Salary ComponentCalculation Basis & Act SectionAnnual (₹)Monthly (₹)
Cost to Company (CTC)Annual gross employment contract value₹10,00,000.00₹83,333.00
Less: Employer PF Contribution12% of basic (statutory ceiling ₹21,600/yr)- ₹21,600.00- ₹1,800.00
Gross Taxable SalaryCTC minus employer social security₹9,78,400.00₹81,533.00
Less: Standard DeductionSection 16(ia) flat deduction (Tax Year 2026-27)- ₹75,000.00- ₹6,250.00
Net Taxable Income (Section 115BAC)Tax computation base after Section 16(ia)₹9,03,400.00₹75,283.00
Income Tax on Slabs (0–24L+)Tax Year 2026-27 7-tier revised tax slabs₹30,340.00₹2,528.00
Less: Section 87A Tax Rebate100% Tax Rebate (Income ≤ ₹12 Lakh)- ₹30,340.00- ₹2,528.00
Health & Education Cess (4%)Statutory 4% on net income tax payable₹0.00₹0.00
Total Annual Income Tax (TDS)Net tax liability withheld by employer₹0.00₹0.00
Less: Employee PF Contribution12% of basic retirement savings- ₹21,600.00- ₹1,800.00
Less: Professional Tax (PT)State statutory municipal levy (avg ₹200/mo)- ₹2,400.00- ₹200.00
Net In-Hand Take-Home Cash (Credited to Bank)₹9,54,400.00₹79,533.33

Calculation Assumptions

  • CTC: ₹10,00,000 per annum
  • Standard deduction: ₹75,000
  • Full Section 87A rebate applies (taxable income under ₹12 Lakh)

Typical Calculation Scenario

Calculation based on target inputs: ctc=1000000

Step 1 (Inputs Applied): Computed server-side using standard Indian financial equations.
Step 2 (Outcome): Because taxable income is ₹9.25 Lakh (after ₹75,000 standard deduction), income tax under the New Regime is completely waived via Section 87A rebate.

Important Statutory & Regulatory Notes

  • •Statutory Slabs: Tax Year 2026-27 slabs (Income Tax Act, 2025): 0-4L Nil, 4-8L 5%, 8-12L 10%, 12-16L 15%, 16-20L 20%, 20-24L 25%, >24L 30%.
  • •Section 87A Rebate: Full rebate on tax payable up to ₹60,000 for taxable income up to ₹12 Lakh (salaried up to ₹12.75L with standard deduction).
  • •Provident Fund Rules: Employee PF is 12% of basic salary. Statutory minimum wage EPF ceiling is ₹1,800/month (12% of ₹15,000) if opted by employer.
  • •Professional Tax: Levied by state governments (typically capped at ₹2,500/year or ₹200/month per Article 276(2) of the Constitution).

Frequently Asked Questions

What is the in-hand salary for ₹10 LPA?

Monthly take-home is approximately ₹73,000 to ₹77,000 after statutory PF.

How much tax on ₹10 LPA in AY 2026-27?

Under the New Tax Regime, net tax payable is ₹0 due to Section 87A rebate for income up to ₹12 Lakh.

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Statutory Accuracy & Verification StatusSource: Income Tax Department of India — Income Tax Act, 2025 (Tax Year 2026-27)
Verified: 2026-09-10
Independent Platform Notice: BharatBills is an independent Indian financial utility platform. BharatBills is not a bank, NBFC, tax authority, or government agency. Calculations on this page are illustrative estimates based on specified inputs and statutory Indian formulas. Always verify with your Chartered Accountant (CA) or financial adviser before making major monetary decisions.