Salary Calculator (CTC to In-hand)
Break your annual CTC into take-home pay — basic, HRA, PF, gratuity, professional tax and income tax, estimated for FY 2025-26.
How is in-hand salary calculated from CTC?
Your CTC (cost to company) is the total a company spends on you in a year. It includes amounts that are never paid to you monthly — chiefly the employer's PF contribution (12% of basic) and the gratuity provision (4.81% of basic). Removing these gives your gross salary, made up of basic, HRA and the balancing special allowance.
From the gross salary, recurring deductions are taken out: your own PF contribution (12% of basic), professional tax (a state levy, usually about ₹200 a month) and income tax deducted at source (TDS). What remains, divided by twelve, is your monthly in-hand pay.
The income tax here uses the new regime for FY 2025-26 (AY 2026-27): a ₹75,000 standard deduction, the revised slabs, and the Section 87A rebate that makes tax nil where taxable income is up to ₹12 lakh. The percentage assumptions above are editable, but they remain approximate — confirm your real figures against your offer letter or payslip.
Frequently asked questions
What is the difference between CTC, gross salary and in-hand salary?
CTC is the total annual cost to the company, including employer PF and gratuity. Gross salary is CTC minus those employer contributions — basic, HRA and special allowance. In-hand (net) salary is the gross salary after employee PF, professional tax and income tax are deducted.
What is included in CTC?
CTC typically includes basic pay, HRA, special allowance, the employer's PF contribution and the gratuity provision. It can also bundle variable pay, bonuses, insurance premiums and other benefits, which is why CTC is always higher than the salary credited to your account.
How much PF is deducted from my salary?
The employee contributes 12% of basic salary to the Provident Fund, and the employer contributes a matching 12%. Only your own 12% is deducted from your gross salary; the employer share sits inside your CTC and is not part of your in-hand pay.
What is professional tax?
Professional tax is a small tax levied by some state governments on salaried individuals, commonly around ₹200 a month (about ₹2,400 a year). The exact amount varies by state, and a few states do not charge it at all.
How is income tax estimated in this calculator?
Tax is computed under the new regime for FY 2025-26 on your gross salary less the ₹75,000 standard deduction, using the slabs (nil up to ₹4 lakh, then 5%, 10%, 15%, 20%, 25% and 30%) plus 4% cess. The Section 87A rebate makes tax nil where taxable income is up to ₹12 lakh.
Why does my actual salary differ from this estimate?
Employers structure pay differently — your basic, HRA and allowance split may not match the defaults, and CTC can include NPS, insurance, meal cards, variable pay or joining bonuses that change the maths. State professional tax and any tax-saving declarations also affect the final figure, so treat this as a close estimate rather than an exact payslip.
Does this use the old or new tax regime?
It uses the new tax regime, which is the default regime for FY 2025-26. The new regime offers lower slab rates and a ₹75,000 standard deduction but does not allow most exemptions and deductions available under the old regime.