Salary Take-Home Calculator — In-Hand from CTC

Quick answer

Your monthly in-hand salary is your CTC minus everything that is either not paid to you monthly or is deducted before payment. In simple terms: take CTC, remove the employer's PF contribution, then subtract your own PF, professional tax and income tax (TDS), and divide by 12. For example, a ₹12 lakh CTC with 40% basic gives roughly ₹96,000 a month in-hand under the new regime.

Why your in-hand salary is lower than CTC

CTC, or cost to company, is the total amount your employer spends on you in a year. It is not the amount that lands in your bank account. CTC includes items that are paid into funds on your behalf, items paid only once a year or at exit, and items that are deducted before your salary is credited.

The main gaps between CTC and take-home are:

• Employer's PF contribution — part of CTC, but it goes into your Provident Fund account, not your salary.
• Your own PF contribution — deducted from your salary every month and also deposited into PF.
• Professional tax — a small state tax deducted by the employer in states that levy it.
• Income tax (TDS) — the employer estimates your tax for the year and deducts it in monthly instalments.
• Other items such as gratuity, group insurance and variable bonus, which many companies include in CTC but do not pay monthly.

The salary take-home calculator on this page handles the first four automatically. The section on what the calculator leaves out explains how to adjust for the rest.

How to use this salary take-home calculator

The calculator has four fields:

1. Annual CTC — the yearly CTC from your offer letter or appointment letter. If your offer shows a fixed part and a variable part, see the note on variable pay below before entering the figure.
2. Basic as % of CTC — your basic salary as a percentage of CTC. It is set to 40% by default, which is common, but many companies use anything from 30% to 50%. Check your salary structure: divide annual basic by annual CTC and multiply by 100.
3. Professional tax (yearly) — set to ₹2,500 by default, which is the maximum allowed and what many states charge. Some states do not levy professional tax at all; enter ₹0 if you work in one of them. Your salary slip shows the exact monthly deduction.
4. Financial year — choose the year. The income tax slabs for that year are used.

The result shows your monthly in-hand salary at the top, the yearly in-hand figure, and a breakdown of gross salary, employee PF, professional tax and income tax.

The formula the calculator uses

Here is the exact sequence of steps, so you can check the result by hand:

1. Basic salary = CTC × basic %.
2. PF = 12% of basic, capped at ₹1,800 a month (₹21,600 a year). The same amount is taken as the employer's contribution and as your own contribution.
3. Gross salary = CTC − employer PF.
4. Taxable income = gross salary − ₹75,000 standard deduction.
5. Income tax = tax on taxable income under the new regime slabs, less the Section 87A rebate if applicable, plus 4% cess.
6. Yearly in-hand = gross salary − employee PF − professional tax − income tax.
7. Monthly in-hand = yearly in-hand ÷ 12.

Why PF is capped at ₹1,800 a month

Under the EPF scheme, PF is compulsory on wages up to ₹15,000 a month. 12% of ₹15,000 is ₹1,800. Many employers restrict both contributions to this level. Others contribute 12% on your full basic, which means a higher PF deduction and lower take-home, but more savings. The calculator uses the statutory ceiling, so if your employer contributes on full basic, your actual in-hand will be lower than shown. The worked examples show how much difference this makes.

Where your PF money goes

Your own 12% goes fully into your EPF account. The employer's 12% is split: 8.33% of wages, up to ₹15,000 wages (that is, at most ₹1,250 a month), goes to the Employees' Pension Scheme, and the rest goes to your EPF account. So your EPF balance grows by a little less than double your own contribution. The pension part builds your entitlement to a monthly pension under EPS, subject to its rules.

The employer's PF contribution is not taxed in your hands in the normal course. It becomes taxable only if the employer's contributions to PF, NPS and superannuation together exceed ₹7.5 lakh in a year. Your own PF contribution qualifies for deduction under Section 80C only in the old regime.

Why the new regime is used

The new tax regime is the default regime, and most employees now use it. In the new regime, you get a standard deduction of ₹75,000 from salary, and the slabs are: nil up to ₹4 lakh, 5% from ₹4 to 8 lakh, 10% from ₹8 to 12 lakh, 15% from ₹12 to 16 lakh, 20% from ₹16 to 20 lakh, 25% from ₹20 to 24 lakh and 30% above ₹24 lakh. If your taxable income is ₹12 lakh or less, a rebate of up to ₹60,000 under Section 87A makes your tax nil.

The calculator also applies marginal relief. If your taxable income is just above ₹12 lakh, your tax is limited to the amount by which your income exceeds ₹12 lakh. Without this, earning ₹1 more than ₹12 lakh would suddenly cost you tens of thousands in tax.

Professional tax is not deducted from taxable income in the calculator, because the new regime does not allow that deduction. In the old regime it is deductible.

HRA and allowances in the new regime

In the new regime, HRA, LTA and most special allowances are fully taxable. So for a new-regime employee, the split between basic, HRA and special allowance does not change the tax. It matters mainly for PF (if your employer contributes on full basic) and for gratuity, both of which are based on basic. That is why the calculator only needs your basic percentage and not every component.

High salaries and surcharge

If your taxable income goes above ₹50 lakh, a surcharge is added: 10% of the tax above ₹50 lakh, 15% above ₹1 crore and 25% above ₹2 crore. In the new regime it never goes above 25%. The calculator applies the surcharge with marginal relief, so crossing a threshold by a small amount does not increase your tax by more than the extra income.

From tax year 2026-27, the Income-tax Act, 2025 renumbers sections such as 87A. The calculator follows the slabs, rebate and standard deduction shown here.

Key numbers used

Worked examples

Example 1: ₹12 lakh CTC, 40% basic

• Basic = 40% of ₹12,00,000 = ₹4,80,000.
• 12% of basic = ₹57,600, which is above the ₹21,600 cap, so PF = ₹21,600 each for employer and employee.
• Gross salary = ₹12,00,000 − ₹21,600 = ₹11,78,400.
• Taxable income = ₹11,78,400 − ₹75,000 = ₹11,03,400.
• Tax on slabs = ₹20,000 (4–8 lakh) + ₹30,340 (10% of ₹3,03,400) = ₹50,340.
• Rebate under 87A = ₹50,340, since taxable income is below ₹12 lakh. Tax = nil.
• Yearly in-hand = ₹11,78,400 − ₹21,600 − ₹2,500 = ₹11,54,300.
• Monthly in-hand ≈ ₹96,192.

Example 2: ₹13 lakh CTC, where marginal relief helps

• Basic = ₹5,20,000. PF = ₹21,600 (capped).
• Gross salary = ₹12,78,400. Taxable income = ₹12,03,400.
• Tax on slabs = ₹20,000 + ₹40,000 + ₹510 = ₹60,510.
• Taxable income is ₹3,400 above ₹12 lakh, so marginal relief limits the tax to ₹3,400.
• Cess at 4% = ₹136. Total tax = ₹3,536, rounded to ₹3,540.
• Yearly in-hand = ₹12,78,400 − ₹21,600 − ₹2,500 − ₹3,540 = ₹12,50,760.
• Monthly in-hand = ₹1,04,230.

Without marginal relief, tax would have been over ₹60,000. The relief keeps the jump from ₹12 lakh CTC to ₹13 lakh CTC fair.

Example 3: ₹18 lakh CTC, 50% basic

• Basic = ₹9,00,000. PF = ₹21,600 (capped).
• Gross salary = ₹17,78,400. Taxable income = ₹17,03,400.
• Tax on slabs = ₹20,000 + ₹40,000 + ₹60,000 + ₹20,680 (20% of ₹1,03,400) = ₹1,40,680.
• No rebate. Cess = ₹5,627. Total tax ≈ ₹1,46,310.
• Yearly in-hand = ₹17,78,400 − ₹21,600 − ₹2,500 − ₹1,46,310 = ₹16,07,990.
• Monthly in-hand ≈ ₹1,33,999.

Example 4: ₹30 lakh CTC in a state with no professional tax

• Basic = 40% = ₹12,00,000. PF = ₹21,600 (capped).
• Gross salary = ₹29,78,400. Taxable income = ₹29,03,400.
• Tax on slabs = ₹20,000 + ₹40,000 + ₹60,000 + ₹80,000 + ₹1,00,000 + ₹1,51,020 (30% of ₹5,03,400) = ₹4,51,020.
• Cess = ₹18,041. Total tax ≈ ₹4,69,060.
• Professional tax = ₹0.
• Yearly in-hand = ₹29,78,400 − ₹21,600 − ₹4,69,060 = ₹24,87,740.
• Monthly in-hand ≈ ₹2,07,312.

What if PF is on full basic?

Take Example 3 again, but suppose the employer contributes 12% on full basic. PF becomes 12% of ₹9,00,000 = ₹1,08,000 a year from each side, instead of ₹21,600. The employer's extra share comes out of your CTC, and your own extra share is deducted from salary. Together, that is ₹1,72,800 more going into PF each year, about ₹14,400 a month less in-hand before the small tax effect. Your gross salary also falls, which slightly reduces your tax. The money is not lost; it builds up in your PF account with interest, but it is not available to spend every month.

Take-home at common CTC levels

The table below uses the calculator's own assumptions: basic at 40% of CTC, PF capped at ₹1,800 a month, professional tax of ₹2,500 a year, the new regime and no other income. Use it as a quick reference, then run your own numbers for an exact figure.

Two things stand out. Up to a CTC of about ₹12.96 lakh, the rebate makes income tax nil in this setup, because taxable income stays within ₹12 lakh after PF and the standard deduction, so in-hand is simply CTC minus PF and professional tax. Above that, tax rises quickly with each slab. At ₹60 lakh, taxable income crosses ₹50 lakh, so a 10% surcharge is added to the tax before cess.

What the calculator does not include

Every company builds CTC differently. The calculator covers the standard deductions, but you may need to adjust for these items:

Gratuity

Many companies show gratuity as part of CTC, often around 4.81% of basic. Gratuity is paid only when you leave after completing the qualifying service, usually five years. If your CTC includes gratuity, subtract it from CTC before entering the figure, because you will not receive it monthly. You can estimate the eventual payout with the gratuity calculator.

Variable pay and performance bonus

If your CTC includes a target bonus or variable pay paid quarterly or yearly, your regular monthly salary will be lower than the calculator shows. For a monthly figure, enter only the fixed CTC. Remember that the bonus, when paid, is taxable and TDS will be higher in that month.

Insurance and other benefits

Group health insurance, term cover, meal cards, cab facilities and similar benefits are often included in CTC. They have value, but they are not cash in your account. Subtract them from CTC for a closer estimate.

Employer NPS

If your employer contributes to NPS on your behalf, that amount is part of CTC but goes to your NPS account. It is also one of the few deductions allowed in the new regime, under Section 80CCD(2), up to 14% of basic plus DA. This reduces your tax. The NPS tax benefit calculator shows the saving.

Old regime deductions

If you choose the old regime and claim HRA, 80C, 80D, home loan interest and similar deductions, your tax and in-hand will be different. The income tax calculator compares both regimes using your actual deductions.

Understanding your salary slip

Once you join, your salary slip shows the actual figures every month. It usually has two columns.

Earnings list basic salary, house rent allowance (HRA), special allowance, leave travel allowance (LTA) where paid monthly, and any other allowances. Their total is your gross monthly salary.

Deductions list your PF contribution, professional tax, income tax (TDS), and sometimes voluntary deductions such as VPF, loan recovery or canteen charges. Gross minus deductions is your net pay.

Employer PF and gratuity usually do not appear in the earnings at all, because they were never part of the payable salary. That is why people comparing their CTC with their salary slip often feel something is missing.

If you need to issue salary slips as an employer or small business owner, the salary slip generator creates a printable slip.

Checking the calculator against your first salary slip

When your first full month's slip arrives, compare it with the calculator. Multiply the slip's gross earnings by 12 and add the employer PF (if shown in your CTC letter) to get back to roughly your fixed CTC. Then compare the PF, professional tax and TDS lines with the calculator's yearly figures divided by 12.

If TDS on your slip is noticeably higher, the usual reasons are that the employer has applied the old regime because of a declaration you made, has included a bonus in its annual estimate, or does not yet have details of salary from a previous employer that year. If TDS is much lower than expected, tax may be under-deducted, and you could face a bill when you file. Either way, raise it with payroll early rather than at year-end.

How TDS on salary works through the year

Your employer must estimate your total tax for the year and deduct it evenly from each month's salary. At the start of the year you tell your employer which regime you want. If you do not, the new regime is applied by default.

If you choose the old regime, you declare your planned investments and rent, and later submit proofs, usually between January and March. If proofs fall short, the employer recovers the extra tax in the last few months, which can make your March salary much lower than usual. In the new regime there are very few declarations, so TDS is usually steady.

TDS can also change mid-year if you get a raise, a bonus, arrears or join from another company. If you change jobs, give your new employer the details of salary and TDS from the old employer, so tax is not under-deducted.

Joining or leaving mid-year

The calculator assumes you work the full year on the CTC entered. If you join in, say, October, your salary for the year is only six months' worth, so your tax for that year may be much lower or nil, and the monthly TDS your employer deducts reflects that. From the next full year, the regular figure shown by the calculator applies. If you worked for two employers in the same year, the combined salary decides your tax, not each salary separately.

Common mistakes when estimating in-hand salary

• Dividing CTC by 12. This ignores PF, tax and non-monthly items, and overstates your in-hand.
• Including variable pay. A target bonus is not guaranteed and is not paid monthly. Use fixed CTC for monthly planning.
• Wrong basic percentage. A higher basic means higher PF if the employer pays on full basic, and also affects HRA and gratuity. Check your actual salary structure.
• Assuming PF is always capped. Many employers contribute on full basic. Ask HR which applies.
• Ignoring gratuity in CTC. It inflates CTC by a few percent but is paid only on exit after qualifying service.
• Using the wrong professional tax. It depends on the state where you work, not where you live.
• Forgetting other income. If you have interest, rent or capital gains, your total tax is higher, and you may need to pay advance tax yourself.

Comparing two job offers

When you compare offers, CTC alone can mislead. Two offers with the same CTC can give quite different take-home pay depending on basic percentage, PF policy, variable pay and benefits.

Run both offers through the calculator using the fixed CTC and the actual basic percentage. Then note the differences that the calculator does not show: PF on full basic or capped, gratuity included or not, variable pay share, insurance cover, and joining bonus or retention bonus with clawback conditions.

Joining bonuses deserve a special mention. They are taxable as salary in the month you receive them, so a ₹1 lakh joining bonus does not mean ₹1 lakh in your account. If the offer says you must repay it if you leave within a year, read that clause before you count it as income.

A slightly lower CTC with a higher fixed component and capped PF can mean more money in your account each month. A higher PF contribution means more long-term savings. Decide which matters more to you right now.

Choices that change your monthly in-hand

A few choices within your control move the monthly figure up or down:

• Voluntary PF (VPF). You can ask your employer to deduct more than 12% into PF. It reduces in-hand but grows your savings. Interest on very large employee contributions above the specified limits is taxable, so this suits moderate amounts.
• Employer NPS. If your employer offers NPS under a flexible structure, part of your salary can go to NPS. It reduces in-hand, but the contribution is deductible under 80CCD(2) even in the new regime, which lowers your tax.
• Choice of regime. If you have large HRA, home loan interest and 80C investments, the old regime may give lower TDS. Compare both before declaring to your employer.
• PF on full basic. Some employers let new joiners choose between the statutory ceiling and full basic. The ceiling gives more in-hand now; full basic builds more retirement savings.

Documents to keep for filing

Even when the employer deducts TDS correctly, you still need to file your own return. Keep these:

• Monthly salary slips for the year.
• Form 16 from each employer you worked for during the year.
• Your EPF passbook, which you can view on the EPFO website, to confirm contributions are deposited.
• Form 26AS and AIS from the income tax portal, to check TDS credits and other income.
• Proofs of investments and rent receipts, if you chose the old regime.

In your return, gross salary, exempt allowances, standard deduction and TDS should all match Form 16. If you had two employers, add both Form 16s, because each employer gives the standard deduction and rebate independently and the combined tax may be higher.

If your employer deducted more TDS than your actual tax, for example because proofs were submitted late or you had a loss under house property that the employer did not consider, filing your return is how you get the extra back as a refund. If TDS was short, you pay the balance as self-assessment tax before filing, along with any interest. Either way, the return is where your salary, TDS and other income are finally settled, so check the numbers carefully before you submit.

Get it checked by an expert

If your salary structure has HRA, NPS, variable pay or a job change mid-year, the right regime and the right TDS are not always obvious. TaxCaller's expert can review your offer letter or salary slips, check that TDS is on track, compare both regimes for you and file your return. The fee is told upfront before work starts, and the first call is free. See our income tax filing service.