Salary Calculator India — CTC to In-Hand
Instantly convert your CTC to take-home salary. Includes PF, HRA, professional tax, and both new & old income tax regimes. Updated with Budget 2026 tax slabs.
💰 Salary Calculator — FY 2026-27
Enter your CTC and details below to calculate monthly in-hand salary
Old Regime Deductions & Exemptions
🆚 New vs Old Tax Regime — Which Saves More?
Salary Breakdown
Monthly Salary Slip
| Component | Amount |
|---|
What is CTC and How is In-Hand Salary Calculated?
CTC — or Cost to Company — is the total annual expenditure a company incurs for an employee. It includes components you actually receive in hand, plus several that never appear in your bank account. This gap between CTC and in-hand salary confuses millions of Indian job seekers every year.
In-hand salary (also called take-home salary or net salary) is what you receive after all statutory deductions. For a typical salaried professional in India, in-hand salary is 60–72% of CTC, depending on income level, tax regime, and deductions.
CTC Components — A Complete Breakdown
Understanding what goes into your CTC is the first step to understanding why your in-hand salary looks different from your offer letter figure.
| CTC Component | Typical % | Taxability | Notes |
|---|---|---|---|
| Basic Salary | 40–50% | Fully taxable | Base for PF, Gratuity calculation |
| HRA (House Rent Allowance) | 40–50% of Basic | Partially exempt | Metro: 50% of Basic; Non-Metro: 40% |
| Special Allowance | Variable | Fully taxable | Fills gap between Basic+HRA and CTC |
| LTA (Leave Travel Allowance) | 1–2% of CTC | Partially exempt | Exempt with travel proof (Section 10(5)) |
| Employer PF Contribution | 12% of Basic | Not in hand | Capped at ₹1,800/mo (₹15,000 basic limit) |
| Gratuity Provision | ~4.8% of Basic | Not in hand | Paid after 5 years of service |
| Medical/Health Insurance | Variable | Not in hand | Company pays premium directly |
| Performance Bonus | Variable | Fully taxable | May be quarterly or annual |
The In-Hand Salary Formula
The salary calculation follows a structured step-by-step process:
Gross Salary = CTC − Employer PF Contribution − Gratuity Provision
// Step 2: Calculate Taxable Income (New Regime)
Taxable Income = Gross Salary − Standard Deduction (₹75,000)
// Step 3: Calculate Income Tax on Taxable Income
Tax = Apply New/Old Regime Slab Rates + 4% Health & Education Cess
// Step 4: Calculate Monthly In-Hand
Monthly Net = (Gross Salary − Annual Tax − Annual Employee PF − Professional Tax) ÷ 12
FY 2026-27 Income Tax Slabs — New vs Old Regime
The new tax regime is the default tax regime from FY 2023-24 onwards. Budget 2026 confirmed no changes to slabs for FY 2026-27.
| Income Slab | New Regime Rate | Old Regime Rate (Below 60) |
|---|---|---|
| Up to ₹2.5 Lakh | Nil | Nil |
| ₹2.5L – ₹4 Lakh | Nil | 5% |
| ₹4L – ₹8 Lakh | 5% | 5% / 20%* |
| ₹8L – ₹10 Lakh | 10% | 20% |
| ₹10L – ₹12 Lakh | 10% | 30% |
| ₹12L – ₹16 Lakh | 15% | 30% |
| ₹16L – ₹20 Lakh | 20% | 30% |
| ₹20L – ₹24 Lakh | 25% | 30% |
| Above ₹24 Lakh | 30% | 30% |
*Old regime: 5% on ₹2.5L–5L, 20% on ₹5L–10L, 30% above ₹10L. Plus 4% Health & Education Cess on all tax. Section 87A rebate of ₹60,000 for New Regime (income ≤ ₹12L) and ₹12,500 for Old Regime (income ≤ ₹5L).
Worked Example — ₹15 Lakh CTC Calculation
Let’s calculate the in-hand salary for a salaried employee with ₹15 lakh CTC in a metro city, under the new tax regime.
| Calculation Step | Annual (₹) | Monthly (₹) |
|---|---|---|
| CTC | 15,00,000 | 1,25,000 |
| Basic Salary (40% of CTC) | 6,00,000 | 50,000 |
| HRA (50% of Basic, metro) | 3,00,000 | 25,000 |
| Special Allowance (balance) | 4,26,000 | 35,500 |
| Employer PF (12% of ₹15,000 × 12) | −21,600 | −1,800 |
| Gratuity Provision (~4.8% of Basic) | −28,800 | −2,400 |
| Gross Salary | 14,49,600 | 1,20,800 |
| Standard Deduction (New Regime) | −75,000 | — |
| Taxable Income | 13,74,600 | — |
| Income Tax (New Regime) + 4% Cess | ~1,54,700 | ~12,892 |
| Employee PF (12% of ₹15,000 × 12) | −21,600 | −1,800 |
| Professional Tax | −2,400 | −200 |
| Monthly In-Hand Salary | — | ~₹1,05,908 |
When Does the Old Regime Benefit You?
The old tax regime makes sense only if your total eligible deductions exceed ₹3.75 lakh for a ₹15–20 lakh income. Here’s a quick comparison table for common salary levels.
| Annual CTC | New Regime Tax | Old Regime Tax* | Recommended |
|---|---|---|---|
| ₹5 Lakh | ₹0 (Rebate) | ₹0 (Rebate) | New (simpler) |
| ₹8 Lakh | ₹0 (Rebate) | ₹25,000–₹40,000 | New Regime |
| ₹12.75 Lakh | ₹0 (Rebate) | ₹1,00,000+ | New Regime |
| ₹15 Lakh | ₹1,50,000–₹1,55,000 | ₹1,35,000–₹1,55,000 | Depends on deductions |
| ₹20 Lakh | ₹2,73,000 | ₹2,45,000–₹2,70,000 | Old (with 80C+80D) |
| ₹30 Lakh+ | ₹5,00,000+ | ₹4,50,000+ | Old Regime |
*Old regime assumes max 80C (₹1.5L), 80D (₹25K), standard deduction (₹50K). Actual results vary by individual deductions.
PF & Gratuity — The Invisible Deductions
Two components quietly reduce your take-home salary without appearing as line items in your monthly salary slip:
- Employee PF (12% of Basic): Capped at ₹1,800/month because EPF contributions are calculated on a maximum basic of ₹15,000/month. Contributions go to your EPFO account and earn 8.25% interest (FY 2024-25 rate).
- Employer PF (12% of Basic): Part of your CTC but doesn’t reach you monthly. ₹1,800/month goes to EPF, ₹550/month to EPS (Employee Pension Scheme).
- Gratuity Provision: ~4.81% of basic per year is provisioned in your CTC. Paid as a lump sum only after 5 years of continuous employment.
5 Salary Optimization Tips for Indian Employees
- Maximize your salary structure: Ask HR to include meal vouchers (Sodexo), leave travel allowance, and phone/internet reimbursements — these are tax-exempt components.
- Compare regimes at appraisal time: Run both scenarios on this calculator when you get a hike offer. The better regime can differ each year as your salary changes.
- NPS under Employer 80CCD(2): Under the new regime, employer NPS contribution up to 14% of basic salary is deductible. This can legally reduce taxable income by ₹70,000–₹2L/year.
- Understand your gross vs net: When comparing job offers, always calculate in-hand for both. A higher CTC offer may give lower take-home if it has a different bonus structure.
- Voluntary PF (VPF): Contributing extra to PF gives 8.25% guaranteed tax-free returns. Better than most fixed deposits and fully safe.