What is the in-hand salary for 40 LPA?

About ₹2,28,200 a month under the new tax regime, if basic pay is 50% of CTC, PF is 12% of the full basic and gratuity is part of the CTC. If your employer caps PF at the ₹25,000 wage ceiling, it is about ₹2,56,896.

How much income tax is paid on 40 LPA?

₹6,82,906 a year (₹56,909 a month) under the new regime, including 4% cess. The old regime would charge ₹8,84,926 with only PF under 80C.

How much PF is deducted from a 40 LPA salary?

₹20,000 a month if PF is 12% of your full basic of ₹1,66,667, and your employer adds the same amount. If PF is capped at the ₹25,000 wage ceiling, it is ₹3,000 a month each.

40 LPA In-Hand Salary (FY 2026-27)

A CTC of ₹40 lakh (₹3,33,333 a month) gives an in-hand salary of about ₹2,28,200 a month under the new tax regime and ₹2,11,365 under the old regime, with a typical structure: basic at 50% of CTC, PF of 12% on the full basic, gratuity included in the CTC and ₹2,500 a year of professional tax.

In-hand salary per month (new regime)

₹2,28,200

The new regime leaves you ₹2,02,020 more a year. Take-home for the year: ₹27,38,394.

Monthly salary slip

Per month	New regime	Old regime
Gross salary	₹3,05,317	₹3,05,317
Your PF contribution	-₹20,000	-₹20,000
Professional tax	-₹208	-₹208
Income tax (TDS)	-₹56,909	-₹73,744
In-hand salary	₹2,28,200	₹2,11,365

CTC breakup

Component	A year	A month
Basic + DA	₹20,00,000	₹1,66,667
HRA (40% of basic)	₹8,00,000	₹66,667
Special allowance	₹8,63,800	₹71,983
Employer PF	₹2,40,000	₹20,000
Gratuity (4.81% of basic)	₹96,200	₹8,017
CTC	₹40,00,000	₹3,33,333

Employer PF and gratuity are part of the CTC but aren't paid to you each month: PF goes into your EPF account, and gratuity is paid when you leave after five years.

How your salary structure changes take-home pay

Structure	In-hand a month (new regime)
Basic 50% of CTC, PF on full basic	₹2,28,200
Basic 50% of CTC, PF capped at ₹25,000 basic	₹2,56,896
Basic 40% of CTC, PF on full basic	₹2,36,055
Basic 40% of CTC, PF capped at ₹25,000 basic	₹2,57,999

Since 17 September 2026 the EPF wage ceiling is ₹25,000 a month. Employers who cap PF deduct at most ₹3,000 a month, which raises in-hand pay but puts less into your EPF. Under the labour codes, basic pay plus DA must be at least half of your pay, so structures with a low basic are being phased out.

New or old tax regime?

The new regime charges ₹6,82,906 a year and the old regime ₹8,84,926 with only PF under 80C. For the old regime to come out ahead, you would need about ₹5,57,500 of deductions on top of your PF and professional tax, such as HRA, other 80C investments, health insurance and home loan interest.

Nearby salaries

CTC	In-hand a month (new)	In-hand a month (old)
30 LPA	₹1,80,685	₹1,63,850
35 LPA	₹2,04,442	₹1,87,607
40 LPA	₹2,28,200	₹2,11,365
45 LPA	₹2,51,957	₹2,35,122
50 LPA	₹2,75,714	₹2,58,879

Change the structure in the in-hand salary calculator

Also see: Income Tax Calculator · HRA Exemption Calculator · EPF Calculator · CTC vs in-hand salary guide

Questions

Estimates for tax year 2026-27 for a resident under 60 with no other income and no variable pay. Your payslip depends on your employer's structure, your state's professional tax and the deductions you declare.