Calculate your exact monthly in-hand (take-home) salary from your CTC. See complete salary breakup with all deductions — PF, Professional Tax, Income Tax, HRA and more.
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PF Deduction (12% of Basic)
Professional Tax
Gratuity (4.81% of Basic)
Monthly In-Hand Salary
₹0
Annual In-Hand
₹0
Earnings (Monthly)
Basic Salary
HRA
Special Allowance
Gross Salary
Deductions (Monthly)
PF (Employee 12%)
Professional Tax
Income Tax (TDS)
Total Deductions
Employer's Cost (Annual)
Employer PF (12%)
Gratuity
💰 Monthly In-Hand
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Enter your CTC and click Calculate to see your complete salary breakup
What is CTC?
CTC (Cost to Company) is the total amount a company spends on an employee annually. It includes your basic salary, HRA, allowances, PF contributions, gratuity, and other benefits. Your actual in-hand (take-home) salary is always lower than CTC.
Why is In-Hand Salary Less than CTC?
Several deductions reduce your CTC to in-hand salary: Employee PF (12% of basic), Professional Tax (₹200/month in most states), Income Tax (TDS), and components like Gratuity that are paid later. The difference can be 15–30% of your CTC.
New vs Old Tax Regime — Which is Better?
New Regime has lower tax rates but no deductions. Old Regime allows 80C, HRA, and other deductions. For salary below ₹7L, New Regime is often better. For ₹10L+ with good investments and HRA, Old Regime may save more. Use the Income Tax Calculator to compare.
CTC includes: employer's PF contribution, gratuity provision, medical insurance, variable pay — none of which you receive monthly. Typical deductions from monthly gross: 12% PF, professional tax (₹200/month), TDS. A ₹12L CTC employee typically takes home ₹75,000-82,000/month.
What is basic salary and why does it matter?▼
Basic salary is the fixed core of your CTC (typically 40-50%). It matters because: PF is 12% of basic (higher basic = more PF = less take-home), HRA is a % of basic, gratuity is calculated on basic. Lower basic with more allowances = higher take-home but lower PF and gratuity.
CTC vs In-Hand Salary — Complete Breakdown India 2026
Cost to Company (CTC) is the total annual expenditure a company makes for an employee, including salary, PF contribution, gratuity provision, health insurance, and other benefits. In-hand (take-home) salary is what gets credited to your bank account after all deductions. Typically, in-hand salary is 70-80% of CTC depending on salary structure and tax regime. For a ₹10L CTC, expect ₹68,000-72,000/month in-hand under the new tax regime with no major deductions.
How PF Affects Your In-Hand Salary
Employee PF is deducted at 12% of basic salary (usually 40-50% of gross). If basic is ₹25,000, PF deduction = ₹3,000/month. This reduces in-hand but builds a retirement corpus at 8.25% interest. Employers also contribute 12% of basic to your PF — this is part of CTC but not part of take-home. Many companies cap PF deduction at ₹1,800/month (12% of ₹15,000 minimum wage) to increase take-home — check your offer letter carefully.
Salary Negotiation Tips — Maximize In-Hand Salary
Request more flexible allowances (meal, transport, telephone, LTA) instead of high basic salary — allowances are partially exempt from tax while basic is fully taxable. HRA should be 40-50% of basic to maximize exemption. If you work in a city with high rent, negotiate higher HRA. For ₹15L CTC: structured as high basic = ₹82,000 in-hand; restructured with more allowances = ₹90,000+ in-hand — same CTC, ₹8,000 more per month.
Frequently Asked Questions
How is in-hand salary calculated from CTC?▼
In-hand = Gross Salary - Employee PF (12% of basic) - Professional Tax (₹200/month) - Income Tax TDS. Gross salary = CTC minus employer PF and other employer contributions. Use our calculator above for exact calculation with your specific salary structure.
What is professional tax and who pays it?▼
Professional tax is a state-level tax deducted by employers. Most states charge ₹200/month (₹2,400/year). It is deductible under Section 16 of the Income Tax Act. States like Maharashtra, Karnataka, West Bengal levy it. Some states like Delhi, Haryana, Rajasthan do not have professional tax.
How much tax on ₹12 lakh salary new regime?▼
Under new regime FY 2025-26: ₹12 lakh salary = ZERO tax! The 87A rebate of ₹60,000 covers the full tax liability. Standard deduction ₹75,000 reduces taxable income to ₹11.25L, tax on which is exactly ₹60,000 — fully rebated. So ₹12L salary means zero income tax payable.