How to use the In-Hand Salary Calculator (CTC to Take Home)
- Enter your yearly CTC from your offer letter.
- Set the basic salary percentage (check your salary slip).
- Choose how PF is deducted and whether gratuity is included in CTC.
- Pick a tax regime. The result shows tax in both regimes so you can compare.
How in-hand salary is calculated
In-hand salary = CTC − employer PF − gratuity − employee PF − professional tax − income tax.
- Employer PF is 12% of your PF wage. It is part of CTC but goes to your PF account, not your bank.
- Gratuity is usually 4.81% of basic. You receive it only when you leave after the eligible service period.
- Employee PF is another 12% deducted from your salary.
- Professional tax is a state tax, at most ₹2,500 a year.
- Income tax is worked out on your taxable salary after the standard deduction (₹75,000 in the new regime, ₹50,000 in the old).
Example: ₹8 lakh CTC in-hand salary
With 50% basic, PF on ₹15,000 basic, gratuity in CTC and ₹200 professional tax, a ₹8,00,000 CTC gives a gross salary of about ₹7.59 lakh. Under the new regime the taxable income is below ₹12 lakh, so income tax is zero because of the Section 87A rebate. After employee PF and professional tax, the in-hand salary is about ₹61,260 a month.
New regime vs old regime for salaried employees
In FY 2026-27 the new regime is the default. It has lower slab rates and makes income up to ₹12.75 lakh (salary) effectively tax-free. The old regime only works out better if you claim large deductions, such as HRA, a home loan and full 80C and 80D. This calculator shows the tax in both so you can decide.
Frequently asked questions
What is the difference between CTC and in-hand salary?
CTC (cost to company) is everything the employer spends on you in a year, including employer PF, gratuity and insurance. In-hand salary is what is credited to your bank account each month after PF, professional tax and income tax.
Is salary up to ₹12 lakh tax-free in 2026-27?
Yes, in the new tax regime. The Section 87A rebate covers taxable income up to ₹12 lakh, and salaried people also get a ₹75,000 standard deduction, so a salary up to ₹12.75 lakh pays no income tax.
How much PF is deducted from salary?
You contribute 12% of your basic salary plus DA. Many companies cap the PF wage at ₹15,000 a month, which makes the deduction ₹1,800 a month.
Why is my in-hand salary lower than CTC divided by 12?
Because employer PF and gratuity are counted in CTC but never paid out monthly, and your own PF, professional tax and TDS are deducted from your gross salary.
These tools give estimates for general guidance and are not financial or tax advice. Rates and rules can change; check official sources before making decisions.