In Hand Salary Calculator – CTC to Monthly Take-Home Pay

See Exactly How Much Lands in Your Bank Account Each Month

Your offer letter says ₹12 LPA. But your bank account tells a different story. This in hand salary calculator converts your CTC (Cost to Company) into the actual monthly amount you take home, after PF, professional tax, and income tax are deducted.

It takes less than a minute, and all the calculation happens right here in your browser — nothing is sent to any server.

How to Use the In Hand Salary Calculator

1. Enter your CTC — your annual package as shown in your offer letter (e.g. ₹12,00,000).
2. Split basic salary — usually 40–50% of CTC. Enter it if you know it, or use the default estimate.
3. Add HRA and other allowances — if your payslip shows them separately, enter them.
4. Choose your tax regime — Old Regime (with deductions like 80C) or New Regime (FY 2025-26 default).
5. Hit Calculate — you'll instantly see your monthly gross, each deduction line, and your net in-hand salary.

Worked Example: ₹12 LPA CTC to In-Hand

Let's say you've just accepted an offer of ₹12,00,000 CTC per year. Here's what the monthly breakdown looks like under the New Tax Regime for FY 2025-26:

Basic assumed at 40% of CTC (₹40,000/month). Income tax estimated after standard deduction of ₹75,000 under the New Regime. Professional tax varies by state.

So a ₹12 LPA package translates to roughly ₹85,000 per month in hand — not the ₹1 lakh some people assume. The gap exists because employer PF and gratuity are inside your CTC but never reach your account.

Why In-Hand Is Always Less Than CTC — Explained Simply

CTC (Cost to Company) is everything your employer spends on you: your salary, their share of Provident Fund, gratuity, health insurance, and sometimes even office perks. You do not receive all of it in cash.

What you actually get is called take-home pay or in-hand salary. The journey from CTC to take-home has three main stops:

• Employer contributions pulled out: Employer PF (12% of basic) and gratuity (4.81% of basic) sit inside CTC but go to separate accounts — not your salary account.
• Employee deductions: Your own PF contribution (12% of basic) and professional tax are cut from your gross salary every month.
• Income Tax (TDS): Your employer deducts tax at source each month based on your projected annual tax liability.

How the Calculation Works

The core formula is straightforward:

In-Hand Salary = Gross Salary − Employee PF − Professional Tax − Income Tax (TDS)

And Gross Salary is derived like this:

Gross Salary = CTC − Employer PF − Gratuity − Other Employer Benefits

Under the New Tax Regime (FY 2025-26), income tax is calculated on your net taxable income after a flat ₹75,000 standard deduction. Under the Old Regime, you can claim deductions like ₹1.5 lakh under Section 80C, HRA exemption, and more — which reduces the TDS amount.

FY 2025-26 Tax Slabs You Should Know

The New Regime is the default for FY 2025-26 (AY 2026-27). Income up to ₹12 lakh is effectively tax-free thanks to the rebate under Section 87A, if your total income does not exceed ₹12,00,000.

Source: Income Tax Department of India (incometax.gov.in)

Under the Old Regime, deductions such as Section 80C (max ₹1.5 lakh), Section 80D (health insurance premiums), and HRA exemption bring down your taxable income — which can mean lower TDS and higher in-hand pay, depending on your investments.

Key Rules and Limits for FY 2025-26

• Employee PF: 12% of basic salary (capped at ₹1,800/month if basic exceeds ₹15,000, though many companies deduct on the actual basic).
• Standard Deduction: ₹75,000 under the New Regime; ₹50,000 under the Old Regime.
• Section 80C limit: ₹1,50,000 per year (Old Regime only) — covers EPF, PPF, ELSS, LIC premium, home loan principal, etc.
• Professional Tax: Varies by state. Maharashtra: max ₹2,400/year. Some states (Delhi, for example) do not levy it at all.
• Gratuity: 4.81% of basic — employer-funded, builds up over your tenure, paid out after 5 years of service.
• Section 87A Rebate: Under the New Regime, tax liability is fully rebated if net income ≤ ₹12,00,000 (₹12 lakh), making the effective tax zero.

Practical Tips to Maximise Your Take-Home

• Compare both regimes before choosing. If you have heavy 80C investments, home loan interest, or HRA claims, the Old Regime may give you a higher in-hand. Run both scenarios in the calculator above.
• Check your basic salary percentage. A higher basic means higher PF deduction (and higher employer PF too) — your in-hand dips, but your retirement corpus grows. A lower basic boosts in-hand but reduces PF benefits.
• Ask HR for the full salary structure. Allowances like LTA, meal vouchers, and phone reimbursements can be partially or fully tax-exempt under the Old Regime and reduce your TDS meaningfully.
• Submit your investment proofs on time. Missing the deadline means your employer deducts higher TDS in the last few months of the financial year to make up the shortfall.

Common Mistakes to Avoid

• Assuming your entire CTC is your salary — employer PF and gratuity are never paid monthly.
• Forgetting that professional tax differs by state — don't use someone else's payslip as your guide.
• Picking the New Regime by default without checking if 80C investments would save you more tax under the Old Regime.

Results from this calculator are indicative. Surcharge (applicable above ₹50 lakh income) and cess (4% Health and Education Cess) are included in the tax estimate but please verify with a chartered accountant for precise TDS filing.

Everything runs locally in your browser — your salary figures are never stored or uploaded anywhere. Enter your CTC above and see your real monthly take-home in seconds.