CTC to In-Hand Salary Calculator
Convert annual CTC to monthly in-hand salary with PF, professional tax, and income tax breakup.
CTC to in-hand salary calculator converts your annual Cost to Company into monthly take-home pay. Enter your CTC and select metro or non-metro city. The result shows Basic, HRA, and Special Allowance. Deductions include employee PF, professional tax, and income tax under the new regime for FY 2025-26. Section 87A rebate applies automatically for income below ₹12 lakh. Free, no signup required.
Metro: Delhi, Mumbai, Kolkata, Chennai — affects HRA (50% vs 40% of basic)
Enter your annual CTC to calculate in-hand salary
Frequently Asked Questions
- How to calculate in-hand salary from CTC?
- Start with gross salary: CTC minus employer PF (12% of basic, capped at ₹1,800/month) and gratuity (4.81% of basic). Deduct employee PF (same as employer PF), professional tax (₹200/month in most states), and income tax under the new regime. The remainder is your in-hand salary. For a ₹12 lakh CTC, in-hand is roughly ₹85,000–₹88,000 per month.
- What percentage of CTC is in-hand salary?
- For most Indian salaried employees, in-hand salary is 70–85% of annual CTC. The gap widens at higher CTC because income tax grows steeply above ₹12 lakh. At ₹6 lakh CTC, take-home is around 84–88%. At ₹20 lakh CTC, take-home is roughly 72–76% after PF and the 20–25% tax slab.
- What is the basic salary percentage in CTC?
- Most Indian employers set basic salary at 40–50% of CTC. A lower basic reduces PF and gratuity liability for both employer and employee, increasing take-home pay. A higher basic increases PF contributions, which is beneficial for retirement but reduces monthly in-hand salary.
- Is CTC and gross salary the same?
- No. CTC (Cost to Company) includes employer-side costs: employer PF contribution (12% of basic, capped) and gratuity (4.81% of basic). Gross salary is CTC minus those employer-side costs. For a ₹10 lakh CTC, gross salary is approximately ₹9.56 lakh after removing employer PF and gratuity.
- How much tax do I pay on a ₹10 lakh CTC?
- At ₹10 lakh CTC, gross salary is roughly ₹9.56 lakh. After the ₹75,000 standard deduction, taxable income is about ₹8.81 lakh under the new regime. Tax at the 5% and 10% slabs comes to roughly ₹26,100. After 4% education cess, total annual tax is about ₹27,144. Section 87A rebate does not apply since taxable income exceeds ₹12 lakh only above ₹12 lakh CTC.
- What is professional tax and how much is it?
- Professional tax is a state-level tax on employment income. Most states charge ₹200 per month (₹2,400 per year). Some states like Gujarat and Karnataka charge a slab-based amount. Maharashtra charges ₹200 per month for income above ₹10,000. Andhra Pradesh and Telangana charge ₹200/month for salaries above ₹20,000. Rajasthan and Haryana do not levy professional tax.
What is CTC to In-Hand Salary Calculator?
CTC to in-hand salary calculator converts your annual Cost to Company into monthly take-home pay. CTC is the total annual expense an employer bears for one employee. In-hand salary is the amount credited to your bank account each month. The gap can be significant and depends on your salary structure, city, and tax liability.
The standard Indian salary structure sets Basic at 40% of CTC. HRA is 50% of Basic for metro cities and 40% for non-metro. Special Allowance covers the remaining amount.
How does it work?
The tool first separates employer-side costs from your CTC. Employer PF is 12% of monthly basic salary, capped at ₹1,800 per month when basic exceeds ₹15,000. Gratuity is 4.81% of annual basic. Both are part of CTC but never reach your bank account.
Gross salary equals CTC minus employer PF and gratuity. From gross salary, three deductions give in-hand pay. Employee PF is 12% of basic (same cap as employer PF). Professional tax is ₹200 per month in most states. Income tax is computed under the new regime for FY 2025-26 after the ₹75,000 standard deduction. If taxable income stays within ₹12 lakh, the Section 87A rebate brings tax liability to zero.
CTC to In-Hand Salary Calculator in India
India's new tax regime for FY 2025-26 makes calculation more predictable. Standard deduction of ₹75,000 applies to all salaried employees. The Section 87A rebate eliminates income tax for those with taxable income up to ₹12 lakh. At ₹12.75 lakh gross salary, the effective tax is zero after the standard deduction and rebate.
Above ₹12 lakh taxable income, slabs step up sharply. The 15% slab covers ₹12–16 lakh. The 20% slab covers ₹16–20 lakh. The 25% slab covers ₹20–24 lakh. At a ₹30 lakh CTC, income tax alone can exceed ₹2.5 lakh annually, reducing the take-home percentage noticeably.
Professional tax rules vary by state. Karnataka, Maharashtra, West Bengal, Andhra Pradesh, and Telangana all levy it. Delhi, Rajasthan, Haryana, UP, and Bihar do not. The calculator uses ₹200 per month as the standard estimate. Actual amounts may differ based on your state and salary band.
Tips to get the best results
- Check your offer letter for the actual basic salary percentage. Some employers set basic at 30–35% of CTC instead of 40%, which reduces PF deductions and increases take-home.
- If your CTC includes a variable or performance bonus, enter only the fixed component. Bonuses vary and should not be used to estimate monthly in-hand salary.
- Use the full CTC breakup table to verify that employer PF and gratuity are included in the quoted number. Some companies quote fixed pay separately and add these on top.
- For ESOP or RSU components in your offer, exclude them from this calculator. Equity grants are taxed differently, at vesting or exercise, not as regular salary income.
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