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Calculators · ~4 min

CTC to in-hand salary calculator

“How much salary will I actually get each month?”

Break a CTC into basic, PF, gratuity, professional tax and income tax to see your monthly take-home pay under either tax regime.

Tax regime

your take-home pay

In-hand per month

₹85,395

In-hand per year

₹10,24,740

Income tax per year

₹0

Basic salary
₹6,00,000
Employer PF (in CTC)
₹72,000
Gratuity (in CTC)
₹28,860
Gross salary
₹10,99,140
Employee PF deducted
₹72,000
Professional tax
₹2,400
Taxable income (after ₹75,000 standard deduction)
₹10,24,140

Estimate for FY 2025-26 / FY 2026-27 rates. Actual salary structures, allowances and employer policies vary — check with your HR or a tax professional.

the guide

CTC vs in-hand salary: how take-home pay is calculated

By Shivam Bhandari · Reviewed 31 October 2026 · How we write

Cost to Company (CTC) is the total amount an employer spends on you in a year, including items you don't receive as monthly cash — such as the employer's PF contribution and gratuity. Your in-hand (take-home) salary is what reaches your bank account after deductions.

The main deductions are your own PF contribution (12% of basic), professional tax (set by your state) and income tax (TDS). The tax regime you choose can change take-home pay significantly.

the formula

In-hand = CTC − Employer PF − Gratuity − Employee PF − Professional tax − Income tax

  • · Employer and employee PF are usually 12% of basic each (sometimes capped at ₹15,000 basic a month).
  • · Gratuity is commonly provisioned at 4.81% of basic.
  • · The new regime gives a ₹75,000 standard deduction; the old regime ₹50,000 plus other deductions.

Worked example: ₹18 lakh CTC, new regime

  • Basic 50% = ₹9,00,000. Employer PF ₹1,08,000 and gratuity ₹43,290 → gross salary ₹16,48,710.
  • Taxable income after ₹75,000 standard deduction: ₹15,73,710 → tax ≈ ₹1,20,699 including cess.
  • After employee PF ₹1,08,000 and professional tax ₹2,400, take-home ≈ ₹1,18,134 a month.
  • At ₹12 lakh CTC with the same structure, tax is zero under the new regime and take-home is about ₹85,395 a month.

Tips

  1. 1Ask HR for the salary structure — basic %, PF and gratuity treatment change take-home pay.
  2. 2Compare both tax regimes every year with the income tax calculator.
  3. 3Remember PF is your savings, even though it reduces monthly cash.
  4. 4Declare investments to your employer early to avoid excess TDS.

Frequently asked questions

What is the difference between CTC and in-hand salary?

CTC is the employer's total annual cost including PF, gratuity and benefits. In-hand is what you receive after PF, professional tax and income tax.

How much PF is deducted from salary?

Typically 12% of basic salary from the employee, with the employer contributing a matching amount. Some employers cap it at 12% of ₹15,000 a month.

Is income up to ₹12 lakh tax-free?

Under the new regime, taxable income up to ₹12 lakh has no tax due to the rebate. Salaried people also get a ₹75,000 standard deduction, so salary income up to about ₹12.75 lakh can be tax-free.

What is professional tax?

A state tax on employment, deducted by employers in states that levy it, up to ₹2,500 a year.