₹4 lakh CTC salary breakup
A typical structure for a ₹4 lakh CTC (₹4,00,000 a year) in the new regime. The new regime gives the higher take-home pay with no extra deductions.
| Component | Monthly | Yearly |
|---|---|---|
| Basic salary | ₹16,667 | ₹2,00,000 |
| House rent allowance | ₹8,333 | ₹1,00,000 |
| Special allowance | ₹5,732 | ₹68,780 |
| Gross salary | ₹30,732 | ₹3,68,780 |
| Employer PF | ₹1,800 | ₹21,600 |
| Gratuity | ₹802 | ₹9,620 |
| Your PF | − ₹1,800 | − ₹21,600 |
| Professional tax | − ₹208 | − ₹2,500 |
| Income tax (new regime) | ₹0 | ₹0 |
In-hand salary: ₹28,723 a month (₹3,44,680 a year).
How basic pay changes your in-hand salary
A higher basic raises gratuity and, if PF is on full basic, PF. With PF on the ₹15,000 ceiling:
| Basic salary | Monthly in-hand | Monthly PF (total) |
|---|---|---|
| 40% of CTC | ₹29,284 | ₹3,200 |
| 50% of CTC | ₹28,723 | ₹3,600 |
| 60% of CTC | ₹28,563 | ₹3,600 |
Compared with nearby CTCs
| CTC | Monthly in-hand | Monthly tax |
|---|---|---|
| ₹3 lakh | ₹21,190 | ₹0 |
| ₹4 lakh | ₹28,723 | ₹0 |
| ₹5 lakh | ₹36,856 | ₹0 |
| ₹6 lakh | ₹44,989 | ₹0 |
| ₹7 lakh | ₹53,122 | ₹0 |
Change any assumption in the calculator above, or check the income tax on a ₹4 lakh salary.
Frequently asked questions
What is the in-hand salary for a ₹4 lakh CTC?
About ₹28,723 a month in the new tax regime for FY 2026-27, assuming basic pay at 50% of CTC, PF on the ₹15,000 wage ceiling, gratuity included in the CTC and ₹2,500 professional tax. In the old regime with no deductions beyond PF it is about ₹28,723.
How much income tax is deducted on a ₹4 lakh CTC?
None in the new regime: taxable salary stays within ₹12 lakh after the ₹75,000 standard deduction, so the rebate covers it. The old regime would cost about ₹0 a year.
How much PF is deducted on a ₹4 lakh CTC?
With PF on the ₹15,000 wage ceiling, you and your employer each contribute ₹1,800 a month. If your employer calculates PF on your full basic, each side becomes ₹2,000 a month and your in-hand pay falls by the difference.
How can I take home more on a ₹4 lakh CTC?
Ask whether PF can be on the wage ceiling, add employer NPS contributions (tax-free in both regimes up to a limit), and, if you pay rent and invest under 80C, compare the old regime, which allows HRA exemption.