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India CTC to In-Hand Salary Calculator

Calculate your monthly take-home salary from your Cost to Company (CTC) for FY 2026-27, factoring in deductions like Income Tax (New & Old Regime), Provident Fund, and Professional Tax.

Your details

Your total annual compensation package before any deductions.

The percentage of your CTC that constitutes your Basic Salary. Typically ranges from 40% to 50%.

Percentage of your Basic Salary paid as HRA. Often 40-50% of Basic.

The actual rent you pay per month. Required for HRA exemption calculation under the Old Tax Regime. If you are using the New Regime, you can leave this as 0.

Metro cities for HRA exemption are Delhi, Mumbai, Chennai, and Kolkata. Select 'Yes' if you live in any of these.

Choose the tax regime you wish to be assessed under for the financial year. The New Regime is the default, but you may opt for the Old Regime to claim deductions like HRA and 80C.

Select your state of employment. Professional Tax is slab-based in most states. This calculator uses the maximum monthly amount for the selected state for simplicity. For precise slab-based calculation, please check your state's rules.

Any other voluntary, employee-paid deductions per month (e.g., meal coupons, personal insurance premiums). Do not include statutory deductions like PF, ESIC, or TDS here.

Result

Your Monthly In-Hand Salary ₹88,180.80

Your final take-home pay after all employee deductions.

How it is calculated

Monthly Cost to Company (CTC) Your total compensation per month.
₹100,000.00
Monthly Basic Salary Basic salary forms the core of your compensation and is used to calculate PF, HRA, and gratuity.
₹40,000.00
Monthly House Rent Allowance (HRA) The HRA component of your salary.
₹20,000.00
Monthly Employee PF Contribution Your contribution to the Employees' Provident Fund (12% of Basic, with the Basic Salary considered for PF capped at ₹15,000 per month).
₹1,800.00
Monthly Employer PF Contribution Employer's matching PF contribution. This is part of your CTC but is not paid directly to you; it is subtracted from your Monthly CTC to arrive at your Gross Salary.
₹1,800.00
Monthly Gross Salary Your total earnings before employee deductions. It is your Monthly CTC minus the Employer's PF Contribution.
₹98,200.00
Monthly HRA Exemption (Old Regime) The exempt portion of HRA under the Old Tax Regime. It is the least of: Actual HRA, Rent paid minus 10% of Basic (or 0 if negative), or 50%/40% of Basic for metro/non-metro.
₹0.00
Annual Taxable Income Income on which tax is calculated after considering regime-specific deductions (HRA, Standard Deduction).
₹1,178,400.00
Annual Income Tax Liability Total income tax payable for the year based on the chosen tax regime and slabs.
₹86,760.00
Health & Education Cess (4%) Cess levied at 4% on the income tax amount.
₹3,470.40
Total Tax & Cess (Annual) Sum of income tax and cess.
₹90,230.40
Monthly Professional Tax State-level professional tax deducted monthly from salary. This calculator uses the typical maximum monthly amount for the selected state. Actual liability may vary based on salary slabs.
₹200.00
Total Monthly Deductions Sum of all monthly deductions: PF, Income Tax (monthly), Professional Tax, and other voluntary deductions.
₹10,019.20
Keep in mind
  • This calculator uses the tax slabs and standard deduction for the Financial Year 2026-27 (Assessment Year 2027-28). Tax laws are subject to change in the Union Budget.
  • The New Tax Regime is the default for FY 2026-27. The Old Regime calculation includes HRA exemption and the standard deduction of ₹50,000 for salaried individuals.
  • Professional Tax rates are based on typical maximum monthly amounts for each state. Actual liability may be lower depending on your monthly gross salary and specific state slab rules. For precise slab-based calculation, please consult your state's commercial tax department.
  • The calculator assumes a full financial year of employment. For partial years or variable income, results will differ.
  • It does not account for deductions under Chapter VI-A (80C, 80D, etc.) in the Old Regime, as these are individual-specific. Including them would further reduce your tax in the Old Regime.
  • The PF calculation assumes the employee is eligible and contributing to EPF. The wage ceiling of ₹15,000 is applied to the Basic Salary for the PF calculation. This ceiling is current as of FY 2026-27.
  • Other deductions should only include voluntary, employee-paid items (e.g., meal coupons, personal insurance). Statutory deductions like ESIC are not calculated here and should not be added to 'Other Deductions'.

Indicative result, calculated from the details and the rules listed below. It does not replace an official calculation or advice from a professional.

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Understanding Your In-Hand Salary in India

Your Cost to Company (CTC) is the total annual expenditure your employer incurs on you. However, your monthly take-home, or in-hand salary, is significantly lower due to various statutory deductions. The key components that affect your net salary are your Basic Salary, House Rent Allowance (HRA), contributions to the Employees' Provident Fund (EPF), Income Tax under the chosen regime (New or Old), and state-specific Professional Tax.

How Your In-Hand Salary is Calculated

The calculation follows a standard process: First, your monthly CTC is determined. Your Basic Salary, a fixed percentage of your CTC, is then calculated. This Basic is used to compute your HRA and your mandatory EPF contribution (12% of Basic, up to a ceiling of ₹15,000). Your Gross Salary is your monthly CTC minus your employer's PF contribution, representing the amount you receive before your own deductions.

Your taxable income is your Gross Salary minus applicable exemptions. Under the New Tax Regime, no exemptions for HRA or standard deduction are available. Under the Old Tax Regime, you can claim exemption on HRA (based on actual rent, city, and basic salary) and a standard deduction of ₹50,000 annually.

Income tax is calculated by applying progressive slab rates to your annual taxable income. A 4% Health and Education Cess is added to the tax amount. Finally, state-mandated Professional Tax (which varies from ₹0 to ₹200 per month) and any other voluntary deductions are subtracted to arrive at your final in-hand salary.

A Worked Example

Consider an employee with an annual CTC of ₹12,00,000 in Mumbai. Assuming a Basic of 40% (₹40,000 monthly), HRA at 50% of Basic (₹20,000), and monthly rent of ₹20,000. Under the New Regime:

  • Monthly CTC: ₹1,00,000
  • Employee PF: 12% of Basic, with the Basic Salary considered for PF capped at ₹15,000 per month. So, PF = 12% of ₹15,000 = ₹1,800.
  • Employer PF: ₹1,800 (not part of take-home).
  • Gross Salary: ₹1,00,000 - ₹1,800 = ₹98,200
  • Annual Taxable Income: ₹98,200 * 12 = ₹11,78,400
  • Income Tax (New Regime Slabs): Up to ₹3L: 0. ₹3L-6L: 5% of ₹3L = ₹15,000. ₹6L-9L: 10% of ₹3L = ₹30,000. ₹9L-₹11,78,400: 15% of ₹2,78,400 = ₹41,760. Total = ₹86,760.
  • Cess (4%): ₹3,470.4
  • Total Annual Tax: ₹90,230.4
  • Monthly Tax: ₹7,519.2
  • Professional Tax (Maharashtra): ₹200
  • Other Deductions: ₹500
  • Total Monthly Deductions: ₹1,800 (PF) + ₹7,519.2 (Tax) + ₹200 (PT) + ₹500 = ₹10,019.2
  • Monthly In-Hand: ₹98,200 - ₹10,019.2 = ₹88,180.8 (approx).

This example illustrates how deductions significantly impact take-home pay.

New vs. Old Tax Regime

Choosing a tax regime is crucial. The New Regime offers lower slab rates but disallows most deductions (including HRA and 80C investments). The Old Regime has higher slab rates but allows these deductions. Typically, individuals with high HRA claims and significant investments under Section 80C may benefit from the Old Regime. Use this calculator to compare your net salary under both options.

Next Steps: Formalizing Your Employment Terms

Once you understand your compensation breakdown, it's important to have it formally documented. An Offer Letter or Employment Agreement should clearly outline your CTC structure, basic salary, allowances, and deduction policies. This ensures transparency and avoids future disputes.

Frequently asked questions

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

CTC (Cost to Company) is your total annual compensation package, including direct benefits (salary, allowances) and indirect costs (employer's PF, insurance). In-hand salary is the net amount you receive monthly after deducting taxes, your PF contribution, professional tax, and other deductions.

Should I choose the New or Old Tax Regime?

It depends on your individual finances. The New Regime is simpler with lower rates but fewer deductions. If you have high HRA expenses and make significant investments under sections like 80C, 80D, the Old Regime might be more beneficial. Use this calculator to compare your net income under both.

Is Professional Tax deducted every month?

Yes, in most states that levy it, Professional Tax is deducted monthly from your salary, up to an annual maximum. The rate and slab vary by state. This calculator uses the typical maximum monthly amount for simplicity; your actual deduction may be lower depending on your salary.

Why is my Provident Fund (PF) contribution less than 12% of my Basic?

PF contribution is calculated as 12% of your Basic Salary, but only on the first ₹15,000 of Basic per month (the wage ceiling). If your Basic is higher than ₹15,000, your contribution will be 12% of ₹15,000, i.e., ₹1,800.

Does the calculator include deductions like 80C?

No. For simplicity and because investments are personal choices, this calculator does not account for deductions under Chapter VI-A (like 80C, 80D) in the Old Regime. Including them would further reduce your taxable income under the Old Regime.

What if my state is not listed for Professional Tax?

Select 'Other State (No PT)'. Many states do not levy professional tax. For precise rates, please check your state's commercial tax department website.

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