Career Tools / CTC to In-Hand Salary Calculator
CTC to In-Hand Salary Calculator
Enter your CTC and adjust the structure to match your offer letter. The breakup shows where every rupee between CTC and take-home goes.
In-hand salary is your gross monthly salary minus employee EPF, professional tax and income tax. CTC is larger than the sum of your twelve payslips because it also contains the employer’s EPF contribution, the gratuity provision and any variable pay, none of which reach your bank account monthly.
On a ₹12,00,000 CTC with a 40 per cent basic in a metro city, roughly ₹88,000 a month reaches the account, against the ₹1,00,000 a month that dividing CTC by twelve would suggest.
How CTC converts to in-hand salary
Four components explain almost the entire gap between CTC and take-home:
- Employer EPF. Counted inside CTC but paid into your provident fund account, not your salary account. It is your money, just not this month.
- Gratuity provision. Also counted inside CTC, but payable only after five years of continuous service under the Payment of Gratuity Act. Leave before that and the provision was never yours.
- Employee EPF. Deducted from your gross salary at the same 12 per cent of basic, so provident fund appears twice in the arithmetic.
- Income tax. Deducted monthly as TDS. Under the new regime for FY 2026-27 the Section 87A rebate means salaried income up to ₹12,75,000 attracts no tax at all after the ₹75,000 standard deduction.
Worked example
Basic (40% of CTC): ₹4,80,000 · HRA (50% of basic): ₹2,40,000
Employer EPF (12% of basic): ₹57,600 · Gratuity (4.81% of basic): ₹23,088
Special allowance (balancing figure): ₹3,99,312
Gross salary: ₹12,00,000 − ₹57,600 − ₹23,088 = ₹11,19,312
Taxable income: ₹11,19,312 − ₹75,000 standard deduction = ₹10,44,312. Tax before rebate is ₹44,431, but because taxable income is under ₹12,00,000 the Section 87A rebate wipes it out entirely. Income tax payable: nil.
Deductions: employee EPF ₹57,600 + professional tax ₹2,400 = ₹60,000
Net annual: ₹10,59,312 → in-hand per month: ₹88,276
The same CTC in the old regime with no deductions claimed would leave less in hand, which is why the new regime is the default for most salaried people below ₹15 lakh who do not have a home loan or large 80C investments.
Income tax slabs, FY 2026-27 new regime
Budget 2026 left the slab structure and the Section 87A rebate unchanged, so the rates introduced in Budget 2025 continue through FY 2026-27 (assessment year 2027-28).
| Taxable income | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
A standard deduction of ₹75,000 applies to salaried income, and the Section 87A rebate of up to ₹60,000 makes taxable income up to ₹12,00,000 effectively tax free, which is gross salary up to ₹12,75,000. Health and education cess of 4 per cent is added to the tax computed, and surcharge applies above ₹50,00,000.
Professional tax by state
Professional tax is levied by the state, not the centre, so the deduction on your payslip depends on where you are employed. These are the annual amounts the calculator applies.
| State | Annual amount |
|---|---|
| Telangana | ₹2,400 |
| Andhra Pradesh | ₹2,400 |
| Karnataka | ₹2,400 |
| Maharashtra | ₹2,500 |
| West Bengal | ₹2,400 |
| Gujarat | ₹2,400 |
| Tamil Nadu | ₹2,080 |
| Delhi, Haryana, Uttar Pradesh and several others | Not levied |
Comparing two offers? Run each CTC through this calculator separately rather than comparing the headline figures, then use the salary hike calculator to see the real percentage movement between them.
Frequently asked questions
Why is my in-hand salary so much lower than my CTC divided by 12?
CTC includes the employer's EPF contribution, the gratuity provision and any annual variable pay, none of which reach your bank account each month. Your gross salary is then reduced further by employee EPF, professional tax and income tax before it becomes in-hand.
Is employer PF part of CTC?
Yes, in almost every Indian offer letter. The employer's 12 per cent contribution is counted inside CTC but paid into your provident fund account rather than your salary account, so it raises the CTC figure without raising monthly take-home.
What percentage of CTC is basic salary?
Most Indian employers set basic at 40 to 50 per cent of CTC. A higher basic increases EPF and gratuity, which reduces monthly in-hand but increases long-term savings. A lower basic does the opposite.
Which tax regime gives higher in-hand salary?
For most salaried people earning under about 15 lakh with no home loan and limited 80C investments, the new regime gives higher take-home, because the Section 87A rebate makes salaried income up to 12,75,000 tax free. The old regime tends to win where deductions are large.
Is gratuity included in CTC?
Many employers include a gratuity provision of 4.81 per cent of basic inside CTC. It becomes payable only after five years of continuous service under the Payment of Gratuity Act, so leaving earlier means that portion of CTC was never received.
Does this calculator include variable pay in the monthly figure?
No. Variable pay and annual bonus are excluded from the monthly in-hand figure because they are normally paid annually or quarterly, but they are included in the taxable income used to compute tax.
Is professional tax the same in every state?
No. Professional tax is a state levy. Telangana, Andhra Pradesh, Karnataka, West Bengal and Gujarat charge 2,400 a year at higher slabs, Maharashtra 2,500 and Tamil Nadu 2,080, while Delhi, Haryana and Uttar Pradesh do not levy it at all.