₹42 lakh CTC salary breakup
A typical structure for a ₹42 lakh CTC (₹42,00,000 a year) in the new regime. The new regime gives the higher take-home pay with no extra deductions.
| Component | Monthly | Yearly |
|---|---|---|
| Basic salary | ₹1,75,000 | ₹21,00,000 |
| House rent allowance | ₹87,500 | ₹10,50,000 |
| Special allowance | ₹76,083 | ₹9,12,990 |
| Gross salary | ₹3,38,583 | ₹40,62,990 |
| Employer PF | ₹3,000 | ₹36,000 |
| Gratuity | ₹8,418 | ₹1,01,010 |
| Your PF | − ₹3,000 | − ₹36,000 |
| Professional tax | − ₹208 | − ₹2,500 |
| Income tax (new regime) | − ₹67,288 | − ₹8,07,453 |
In-hand salary: ₹2,68,086 a month (₹32,17,037 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 ₹25,000 ceiling:
| Basic salary | Monthly in-hand | Monthly PF (total) |
|---|---|---|
| 40% of CTC | ₹2,69,245 | ₹6,000 |
| 50% of CTC | ₹2,68,086 | ₹6,000 |
| 60% of CTC | ₹2,66,928 | ₹6,000 |
Compared with nearby CTCs
Frequently asked questions
What is the in-hand salary for a ₹42 lakh CTC?
About ₹2,68,086 a month in the new tax regime for FY 2026-27, assuming basic pay at 50% of CTC, PF on the ₹25,000 wage ceiling, gratuity included in the CTC and ₹2,500 professional tax. In the old regime with no deductions beyond PF it is about ₹2,48,287.
How much income tax is deducted on a ₹42 lakh CTC?
About ₹8,07,453 a year (₹67,288 a month as TDS) in the new regime, and about ₹10,45,041 in the old regime with no deductions beyond PF.
How much PF is deducted on a ₹42 lakh CTC?
With PF on the ₹25,000 wage ceiling, you and your employer each contribute ₹3,000 a month. If your employer calculates PF on your full basic, each side becomes ₹21,000 a month and your in-hand pay falls by the difference.
How can I take home more on a ₹42 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.