# 12 LPA In-Hand Salary: INR 85,400 a Month (FY 2026-27) > 12 LPA in hand salary in FY 2026-27 is about INR 85,400 a month with zero income tax. See PF, gratuity, the old regime and the full breakup. Source: https://trykosh.com/tools/12-lpa-in-hand-salary Free tool - Salary and retirement # 12 LPA in-hand salary: what INR 12 lakh CTC pays each month On a 12 LPA CTC you take home about INR 85,387 a month in FY 2026-27, with no income tax in the new regime. Change the basic share, PF, variable pay or regime below to match your offer letter. Rules checked 25 October 2026Free - no sign-upRuns in your browser In-hand salary per month INR 85,387 INR 10,24,640 a year Take-home **INR 10,24,640**PF (both shares) **INR 1,44,000**Gratuity + PT **INR 31,360** CTC INR 12,00,000 − Employer PF INR 72,000 − Gratuity provision (4.81% of basic) INR 28,860 Gross salary INR 10,99,140 − Your PF (12% of basic) INR 72,000 − Professional tax INR 2,500 − Income tax (new regime) INR 0 Take-home for the year INR 10,24,640 Basic works out to INR 50,000 a month. PF is still your money: it grows at 8.25% a year in your EPF account. ## Upload your statement and Kosh does this for you. Knowing you get INR 85,387 is the start; Kosh shows where it goes. Upload a salary slip or bank statement and it finds the subscriptions, fees and leaks eating your month, picks your tax regime from your real deductions and sets a daily plan to save more of your 12 LPA. [Start free](/signup?via=tool-12-lpa-in-hand-salary) ## How the 12 LPA in-hand salary works A 12 LPA package means a cost to company of INR 12 lakh a year. Assuming basic pay at half of CTC (the Labour Codes floor), your employer's 12% PF contribution (INR 72,000) and a gratuity provision of 4.81% of basic (INR 28,860) sit inside that CTC but never reach your account, so your gross salary is INR 10,99,140, or INR 91,595 a month. From gross, your own 12% PF (INR 72,000 a year) and INR 2,500 of professional tax are deducted; income tax is nil in the new regime. That leaves INR 10,24,640 a year, about INR 85,387 a month: 85% of your CTC. Tax is zero because your taxable income after the INR 75,000 standard deduction is INR 10,24,140, and the section 87A rebate cancels the INR 42,414 of slab tax on it (the rebate covers taxable income up to INR 12 lakh). The old regime would cost you INR 95,501 a year even with INR 1.5 lakh of 80C, so the new regime is the clear pick unless you have large HRA or home-loan deductions. The old regime only beats the new one if your total old-regime deductions (80C including your PF, HRA, 80D health insurance, home-loan interest) come to more than INR 5,49,140 a year. Your PF alone counts for INR 72,000 of that. Compared with 10 LPA (INR 71,121 a month), the extra INR 2 lakh of CTC adds INR 14,266 a month to take-home, INR 7,133 for each lakh; the rest goes to PF and gratuity. In-hand = CTC − employer PF − gratuity − employee PF − professional tax − income tax ## Worked example: 12 LPA with PF on the INR 15,000 ceiling Some employers cap PF at 12% of INR 15,000 (INR 1,800 a month each) rather than 12% of full basic (INR 6,000). At 12 LPA that leaves INR 11,49,540 of gross salary and INR 93,787 a month in hand, INR 8,400 more than with full PF, but INR 1,00,800 a year less going into your EPF. In-hand salary per month INR 93,787 INR 11,25,440 a year Take-home **INR 11,25,440**PF (both shares) **INR 43,200**Gratuity + PT **INR 31,360** CTC INR 12,00,000 − Employer PF INR 21,600 − Gratuity provision (4.81% of basic) INR 28,860 Gross salary INR 11,49,540 − Your PF (12% of basic) INR 21,600 − Professional tax INR 2,500 − Income tax (new regime) INR 0 Take-home for the year INR 11,25,440 Basic works out to INR 50,000 a month. PF is still your money: it grows at 8.25% a year in your EPF account. [Load this example into the calculator ->](?pfCapped=1#calculator) ## Good to know - If your employer calculates PF on the INR 15,000 statutory wage ceiling instead of full basic, take-home rises by INR 8,400 a month to INR 93,787, at the cost of slower EPF savings. - If 10% of the package is variable pay, fixed take-home drops to about INR 76,827 a month; the bonus arrives separately, taxed, when it's paid. - In Delhi, Haryana, Uttar Pradesh and other states without professional tax, add INR 208 a month. - Your PF isn't lost: both shares (INR 1,44,000 a year) build up in your EPF account at 8.25% (FY 2025-26 rate). ## Frequently asked questions What is the in-hand salary for 12 LPA? About INR 85,387 a month in FY 2026-27, with basic at half of CTC, PF on full basic, gratuity inside the CTC and the new tax regime. If PF is on the INR 15,000 ceiling, it's closer to INR 93,787. How much tax do I pay on 12 LPA? Nothing in the new regime: taxable income of INR 10,24,140 gets a full 87A rebate. The old regime, with INR 1.5 lakh of 80C, would be INR 95,501. How much is 12 LPA per month? INR 1,00,000 is CTC divided by 12, but that isn't what you're paid. Gross salary is INR 91,595 a month, and after PF, professional tax and income tax about INR 85,387 reaches your account. Is the old or new regime better on 12 LPA? The new regime, unless your old-regime deductions add up to more than INR 5,49,140 a year. That's more than almost anyone on this salary can claim. ## Sources and assumptions - [Income Tax Department](https://www.incometax.gov.in/) - [EPFO](https://www.epfindia.gov.in/) - [Ministry of Labour and Employment](https://labour.gov.in/) Rules and rates last checked on 25 October 2026. Results are estimates for planning and education, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. 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