Sneha moved to a Pune product company as a QA analyst at ₹7.5 lakh CTC. That is ₹62,500 a month on the offer letter. She takes home ₹53,297. Still no income tax, the rebate handles it. What she loses to the CTC-to-take-home gap is provident fund plus a small professional tax, and that is it.
What ₹7.5 lakh CTC actually contains
Standard 50% basic structure at ₹7.5L:
| Component | Annual | Monthly |
|---|---|---|
| Basic salary | ₹3,75,000 | ₹31,250 |
| HRA (50% of basic) | ₹1,87,500 | ₹15,625 |
| Special allowance | ₹1,24,462 | ₹10,372 |
| Employer PF (12% of basic) | ₹45,000 | ₹3,750 |
| Gratuity provision (4.81%) | ₹18,038 | ₹1,503 |
| Total CTC | ₹7,50,000 | ₹62,500 |
Employer PF plus gratuity comes to ₹63,038. That money sits inside the ₹7.5 lakh CTC and never lands in your salary account. Your gross salary, the part payroll actually pays, is ₹6,86,962 a year.
Take-home calculation (new regime)
| Item | Annual | Monthly |
|---|---|---|
| Gross salary (excl. employer PF + gratuity) | ₹6,86,962 | ₹57,247 |
| Less: Employee PF | ₹45,000 | ₹3,750 |
| Less: Professional tax (Karnataka) | ₹2,400 | ₹200 |
| Less: Income tax | ₹0 | ₹0 |
| In-hand | ₹6,39,562 | ₹53,297 |
Tax working: gross ₹6,86,962 minus the ₹75,000 standard deduction leaves taxable income of ₹6,11,962. Slab tax is ₹10,598 in the 5% slab. Because taxable income is under ₹12 lakh, the ₹60,000 section 87A rebate erases the ₹10,598 in full. Income tax at ₹7.5 lakh CTC is zero.
Where the money actually goes
Nothing goes to the taxman at ₹7.5 lakh CTC. The ₹9,203 gap between gross and take-home each month is PF and professional tax, not income tax. That PF is ₹45,000 a year building quietly in your EPFO account at 8.25%. Do not switch to the old regime hoping for 80C relief here, it taxes this CTC ₹41,488 and hands you a smaller take-home. The lever that helps at this level is a raise, not a deduction. If a hike is on the table, the salary hike calculator shows how a 20% bump moves your in-hand.
How take-home moves across the salary ladder
| CTC | Monthly take-home | Income tax / year |
|---|---|---|
| ₹6L | ₹42,598 | ₹0 |
| ₹6.5L | ₹46,164 | ₹0 |
| ₹7L | ₹49,730 | ₹0 |
| ₹7.5L | ₹53,297 | ₹0 |
| ₹8L | ₹56,863 | ₹0 |
| ₹9L | ₹63,996 | ₹0 |
| ₹10L | ₹71,129 | ₹0 |
| ₹11L | ₹78,262 | ₹0 |
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)