What is the monthly in-hand salary for a 5 LPA CTC package in FY 2026-27?

For a ₹5 Lakhs (5 LPA) annual CTC package, the net monthly in-hand salary is approximately ₹38,967 under the New Tax Regime, after accounting for EPF, Professional Tax, and Income Tax deductions.

How much income tax is deducted for a 5 LPA package under New Regime?

Under the New Tax Regime for FY 2026-27 (AY 2027-28), annual income tax on a ₹5 Lakhs CTC is ₹0 due to Section 87A tax rebate and the ₹75,000 standard deduction.

What is the monthly EPF deduction for 5 LPA salary?

Assuming a standard basic salary structure (50% of CTC), the employee EPF contribution (12% of basic) is approximately ₹2,500 per month for a 5 LPA package.

FY 2026-27 (AY 2027-28) Salary Guide

5 LPA In-Hand Salary Per Month Breakdown

Exact take-home salary, tax liability under New vs Old Regime, and monthly EPF contributions for an annual package of ₹5 Lakhs.

EST. MONTHLY IN-HAND₹38,967(New Regime)

ANNUAL CTC

₹5 Lakhs

₹5,00,000 / year

MONTHLY IN-HAND (NEW)

₹38,967

After tax & EPF

ANNUAL TAX (NEW)

₹0 (Zero Tax)

Sec 87A Rebate eligible

MONTHLY EPF CONTRIBUTION

₹2,500

12% of basic pay

Understanding Your 5 LPA Package In-Hand Salary

When an employer offers a package of ₹5 Lakhs (5 LPA CTC), your gross monthly pay is ₹41,667. However, the actual credited amount in your bank account (net take-home) depends on mandatory statutory deductions such as Employee Provident Fund (EPF), Professional Tax (typically ₹200/month), and Income Tax (TDS).

Key Takeaways for 5 LPA CTC

Under the New Tax Regime FY 2026-27, a 5 LPA package enjoys zero effective income tax thanks to the Section 87A rebate and ₹75,000 standard deduction.
Monthly EPF contribution is ₹2,500 (12% of basic pay assuming 50% basic structure).
Net monthly take-home salary is approximately ₹38,967 under the New Regime vs ₹38,967 under the Old Regime without extra deductions.

Old vs New Tax Regime Comparison

Under FY 2026-27 rules, the New Tax Regime offers a standard deduction of ₹75,000 and zero tax for taxable income up to ₹12 Lakhs (via Section 87A rebate). For a 5 LPA package, the New Regime provides an estimated net monthly in-hand salary of ₹38,967 compared to ₹38,967 under the Old Regime without extra 80C/80D investments.

Customize 5 LPA In-Hand Calculations

Adjust your exact basic salary percentage, custom allowances, employer NPS, or HRA exemptions to recalculate your take-home pay.

Salary Calculator

In-hand & take home salary for old and new tax regimes

Select Regime:

Fixed CTC (₹)

Monthly Basic: ₹20,833 | Yearly Basic: ₹2,50,000

Deductions (New Regime)

PF (Yearly)

EPF (Yearly)

Gratuity (Yearly)

Professional Tax (Yearly)

Employer NPS 80CCD(2)

Results

Component	Yearly	Monthly
CTC	₹5,00,000	₹41,667
Gross	₹0	₹0
Standard Deduction	₹75,000	₹6,250
Take Home	₹0	₹0
In-Hand	-₹2,400	-₹200
Income Tax	0 (after rebate)	0

Explanation of Calculations

Gross Salary:Gross Salary (₹0) = CTC (₹5,00,000) - EPF (₹21,600) - Gratuity (₹12,500).
Take Home:Take Home (₹0) = Gross (₹0) - Income Tax (₹0).
In-Hand:In-Hand (-₹2,400) = Take Home (₹0) - Professional Tax (₹2,400) - 80C (₹0) - NPS 80CCD(1B) (₹0) - Mediclaim 80D (₹0) - Donations 80G (₹0) - Home Loan Interest 80EEA (₹0) - Education Loan Interest 80E (₹0) - Rent (₹0) - Employer NPS (₹0).
Taxable Income:Taxable Income (₹4,22,600) = CTC (₹5,00,000) - Deductions (as per selected regime).
Income Tax:Calculated as per regime slabs and cess. See above for details.

Explore Nearby Salary Packages

Compare take-home salary and tax breakdowns across different CTC tiers in India:

Fresher (3.5 LPA) Package~₹27,217/mo 6 LPA Package~₹46,800/mo 8 LPA Package~₹62,467/mo 10 LPA Package~₹78,133/mo 12 LPA Package~₹93,042/mo 15 LPA Package~₹1,06,467/mo 18 LPA Package~₹1,22,817/mo 20 LPA Package~₹1,33,283/mo

Authoritative References

Income Tax Department, Government of India: incometaxindia.gov.in
Employees’ Provident Fund Organisation (EPFO): epfindia.gov.in