How we calculated take-home for ₹25 LPA
Starting from a ₹25,00,000 annual CTC, basic salary comes to ₹10,00,000 (40% of CTC) and HRA to ₹4,00,000 (40% of basic). After removing employer PF (₹1,20,000) and gratuity accrual (₹48,100) — both part of CTC but never paid to you in cash — gross salary works out to ₹23,31,900. Your own PF contribution of ₹1,20,000 and ₹2,400 professional tax are then deducted, along with income tax under whichever regime you pick.
New regime puts ₹2,03,970 more in your pocket per year at this CTC level, under these default assumptions. This gap changes with your actual rent, 80C investments, and salary structure — small differences in basic/HRA percentage can shift the comparison meaningfully at this income level.
At ₹25 LPA — new vs old gap often narrows
Higher CTC means more room for HRA, home loan interest (Section 24b), and 80D health insurance under the old regime. At ₹25 LPA many employees with a home loan and family floater find the old regime competitive again — do not assume new regime without running both sides.
CTC vs in-hand salary — why they're never equal
CTC (cost to company) always overstates what lands in your bank account, because it includes non-cash components like employer PF contribution and gratuity accrual — money set aside for your future, not paid out monthly. For a full breakdown of every component and to run the numbers with your own company's salary structure, use our in-hand salary calculator.