Last updated: October 2026 · FY 2026-27 tax rules
₹12 LPA is the number that gets the most attention after Budget 2025, because the new tax regime makes income up to ₹12 lakh effectively tax-free. That makes a ₹12 LPA CTC one of the sweetest spots in Indian salaries: decent pay and zero income tax.
Here is exactly what you take home each month, why the tax is zero, and who in India earns this much.
12 LPA in-hand salary: the short answer
- Monthly in-hand (new regime): ₹85,395 – ₹93,795
- Yearly in-hand: ₹10,24,740 – ₹11,25,540
- Income tax: ₹0 under the new regime
- Gross monthly salary (before PF, tax): ₹91,595 – ₹95,795
- Assumes: basic pay is 50% of CTC, no variable pay, ₹200 a month professional tax
Why a range and not one number? It depends on how your company calculates PF. If PF is 12% of your full basic pay, you get the lower figure. If PF is capped at the statutory wage limit of ₹15,000 a month (₹1,800 a month from you, ₹1,800 from the company), you get the higher one. Your offer letter or first payslip will tell you which applies.
12 LPA salary breakup: from CTC to in-hand
Here is how a ₹12 lakh CTC turns into money in your bank account. Two parts of CTC never reach your monthly salary: the employer's PF contribution (it goes to your PF account) and gratuity (paid only if you stay 5 years).
| Component (per year) | PF on full basic | PF capped at ₹1,800/month |
|---|---|---|
| CTC (cost to company) | ₹12,00,000 | ₹12,00,000 |
| Basic pay (50% of CTC) | ₹6,00,000 | ₹6,00,000 |
| − Employer PF (goes to your PF account) | −₹72,000 | −₹21,600 |
| − Gratuity (4.81% of basic, paid after 5 years) | −₹28,860 | −₹28,860 |
| = Gross salary | ₹10,99,140 | ₹11,49,540 |
| − Employee PF (12%) | −₹72,000 | −₹21,600 |
| − Professional tax | −₹2,400 | −₹2,400 |
| − Income tax (new regime, incl. 4% cess) | ₹0 | ₹0 |
| = In-hand per year | ₹10,24,740 | ₹11,25,540 |
| = In-hand per month | ₹85,395 | ₹93,795 |
Why is the tax zero? Your taxable salary is ₹10,99,140 minus the ₹75,000 standard deduction, which is ₹10,24,140. Under the new regime, the Section 87A rebate wipes out all tax when taxable income is ₹12 lakh or less. That rule is unchanged for FY 2026-27.
What your monthly payslip will look like
A typical payslip at this salary, with PF on full basic. Companies split the non-basic part differently, so your HRA and special allowance may not match, but the total and the in-hand will be close.
| Payslip line | Per month |
|---|---|
| Basic pay | ₹50,000 |
| HRA | ₹20,000 |
| Special allowance | ₹21,595 |
| Gross earnings | ₹91,595 |
| Employee PF | −₹6,000 |
| Professional tax | −₹200 |
| Income tax (TDS) | ₹0 |
| Net pay | ₹85,395 |
Old vs new tax regime at 12 LPA
Stick with the new regime. You already pay zero tax there. Under the old regime, even with the full ₹1.5 lakh of Section 80C investments, your monthly in-hand would be about ₹77,435, because you would pay ₹95,522 a year in tax.
Who earns 12 LPA in India?
₹12 LPA is typical for software engineers with 2–4 years of experience at product companies, senior engineers at IT services firms, and specialist fresher hires. Infosys's Specialist Programmer L1 track is reported at ₹10 LPA plus a joining bonus in 2026, and TCS Prime at about ₹9.1–11.8 LPA.
Outside tech, analysts at consulting and Big 4 firms and mid-level managers in BFSI often sit in this band.
Median salaries reported on Weekday's company salary pages near this level:
- HCL: ₹12.2 LPA at 2–3 years of experience
- PwC: ₹12.1 LPA median across roles
- Bank of America: ₹10.5 LPA median across roles
- Accenture: ₹9.9 LPA at 2–3 years
- Infosys: ₹9.7 LPA at 2–3 years
Is 12 LPA a good salary?
Yes. ₹85,000–94,000 a month is comfortable in every Indian city, including Bengaluru and Mumbai, for a single person or a couple. Because there is no income tax, almost every rupee of a hike up to this level reaches your pocket.
One thing to watch: your gross salary here is about ₹11–11.5 lakh, so taxable income is around ₹10.2–10.7 lakh. A hike that pushes taxable income past ₹12 lakh brings back slab tax, though marginal relief means you never pay more tax than the amount you cross the line by.
Thinking about your next jump from 12 LPA?
From here the market pays for depth: a backend or data engineer with 4–5 years and strong system design skills is commonly hired at ₹18–25 LPA by product companies. If you are negotiating, know that a jump from ₹12 to ₹15 LPA does not raise your in-hand by the full 25% because tax kicks in. It is closer to 18%.
Want to see what a hike does to your take-home? Run it through the salary hike calculator, or browse jobs on Weekday paying ₹15 LPA and above.
In-hand salary at other CTCs
| CTC | Monthly in-hand | Yearly tax (new regime) |
|---|---|---|
| 3 LPA | ₹21,199 | ₹0 |
| 4 LPA | ₹28,332 – ₹28,732 | ₹0 |
| 4.5 LPA | ₹31,898 – ₹32,798 | ₹0 |
| 5 LPA | ₹35,465 – ₹36,865 | ₹0 |
| 6 LPA | ₹42,598 – ₹44,998 | ₹0 |
| 7 LPA | ₹49,730 – ₹53,130 | ₹0 |
| 10 LPA | ₹71,129 – ₹77,529 | ₹0 |
| 12 LPA | ₹85,395 – ₹93,795 | ₹0 |
| 15 LPA | ₹1,00,308 – ₹1,10,819 | ₹77,832 |
| 20 LPA | ₹1,29,339 – ₹1,44,033 | ₹1,57,435 |
For any other number, or to plug in your own basic pay, PF type and city, use the in-hand salary calculator. If you are new to the terms, our guide on CTC vs in-hand salary explains every line of a payslip.
Frequently asked questions
What is the in-hand salary for 12 LPA per month?
Around ₹85,395 – ₹93,795 a month under the new tax regime, assuming basic pay is 50% of CTC and there is no variable pay. You pay no income tax.
Is 12 LPA tax-free?
Practically yes under the new regime. Your taxable income after PF, gratuity and the ₹75,000 standard deduction is about ₹10.2–10.7 lakh, under the ₹12 lakh rebate limit, so tax is zero.
What is 12 LPA per month?
₹1,00,000 a month on paper (CTC ÷ 12), but your in-hand is about ₹85,400–₹93,800 because PF and gratuity are part of CTC.
Does variable pay change my 12 LPA in-hand?
Yes. If part of your CTC is a performance bonus, it is paid once or twice a year, not monthly. Take it out of the CTC before you calculate the monthly figure, then expect the bonus as a lump sum (taxed when paid).
Why is my in-hand lower than this?
Common reasons: a lower basic % (PF and gratuity eat more), group health insurance deducted from salary, meal cards or NPS taken from your pay, or a state with different professional tax. Your payslip shows each one.
How we calculated this
All figures use FY 2026-27 rules under the Income-tax Act, 2025, which kept the same slabs as last year: a ₹75,000 standard deduction and full rebate up to ₹12 lakh taxable income in the new regime; a ₹50,000 standard deduction in the old regime; 4% health and education cess. We assume basic pay is 50% of CTC (the new labour codes push most companies to at least 50%), gratuity at 4.81% of basic inside CTC, employee and employer PF at 12%, and ₹2,400 a year professional tax. Your actual numbers depend on your salary structure, so treat these as a close estimate, not a payslip.
