Divya joined a ₹67.5 lakh role as a financial analyst in Kochi and had to pick a tax regime on the joining form. New regime: ₹3,46,633 a month, income tax of ₹16,15,670 a year. Old regime with no real deductions: ₹3,23,753 a month, because ₹67.5 lakh gets taxed ₹18,90,230 there. Same CTC, ₹22,880 a month difference, decided by one checkbox.
What ₹67.5 lakh CTC actually contains
Standard 50% basic structure at ₹67.5L:
| Component | Annual | Monthly |
|---|---|---|
| Basic salary | ₹33,75,000 | ₹2,81,250 |
| HRA (50% of basic) | ₹16,87,500 | ₹1,40,625 |
| Special allowance | ₹11,20,163 | ₹93,347 |
| Employer PF (12% of basic) | ₹4,05,000 | ₹33,750 |
| Gratuity provision (4.81%) | ₹1,62,338 | ₹13,528 |
| Total CTC | ₹67,50,000 | ₹5,62,500 |
Employer PF plus gratuity comes to ₹5,67,338. That money sits inside the ₹67.5 lakh CTC and never lands in your salary account. Your gross salary, the part payroll actually pays, is ₹61,82,663 a year.
Take-home calculation (new regime)
| Item | Annual | Monthly |
|---|---|---|
| Gross salary (excl. employer PF + gratuity) | ₹61,82,663 | ₹5,15,222 |
| Less: Employee PF | ₹4,05,000 | ₹33,750 |
| Less: Professional tax (Karnataka) | ₹2,400 | ₹200 |
| Less: Income tax | ₹16,15,670 | ₹1,34,639 |
| In-hand | ₹41,59,593 | ₹3,46,633 |
Tax working: gross ₹61,82,663 minus the ₹75,000 standard deduction leaves taxable income of ₹61,07,663. Slab tax works out to ₹14,12,299, and after cess the final income tax is ₹16,15,670.
New regime vs old regime at this salary
Under the new regime, income tax works out to ₹16,15,670 a year. Switch to the old regime with no major deductions and the same ₹67.5 lakh is taxed ₹18,90,230 a year, pulling monthly in-hand down to ₹3,23,753. That’s a gap of ₹2,74,560 a year, gone for ticking the wrong box.
The old regime only catches up if you genuinely stack deductions: the full ₹1.5 lakh under 80C, ₹25,000 of 80D health cover, ₹50,000 of NPS under 80CCD(1B), and real HRA exemption from rent paid. Without most of that, stay on the new regime. Run your actual numbers both ways in the take-home calculator before you commit on the joining form.
How take-home moves across the salary ladder
| CTC | Monthly take-home | Income tax / year |
|---|---|---|
| ₹66L | ₹3,39,863 | ₹15,68,517/yr |
| ₹67L | ₹3,44,376 | ₹15,99,952/yr |
| ₹68L | ₹3,48,889 | ₹16,31,387/yr |
| ₹69L | ₹3,53,403 | ₹16,62,823/yr |
| ₹67.5L | ₹3,46,633 | ₹16,15,670/yr |
All figures: new regime, Karnataka professional tax, 50% basic structure, FY 2025-26. Plug your own CTC and city into the take-home salary calculator for an exact number.
Sources
- Income Tax Act 1961: Section 115BAC new regime slabs, ₹75,000 standard deduction, Section 87A rebate (FY 2025-26)
- EPFO: 12% employee plus 12% employer PF contribution on basic salary
- Payment of Gratuity Act 1972: 4.81% gratuity provision formula
- State Professional Tax Acts (Karnataka rate used as the representative figure)