Enter your annual CTC, pick the tax regime, and see your monthly take-home pay. The calculator subtracts employer-funded items (employer EPF, gratuity provision) to reach Gross, then deducts your EPF share, professional tax and FY 2025-26 income tax to reach in-hand. Uses the same engine as our Income Tax Calculator (AY 2026-27).
₹15L
40%
Your Salary Breakdown
Monthly In-Hand
—
Annual In-Hand
—
Gross Salary (Yr)
—
Total Deductions
—
🍩 CTC Breakdown
📋 Full CTC → In-Hand Breakdown
Component
Annual (₹)
Monthly (₹)
Disclaimer: Real CTC structures vary by employer — bonuses, ESOPs, variable pay, LTA, NPS contribution, group health insurance and meal allowances may add or remove components. The calculator uses the standard salaried structure. Income tax uses AY 2026-27 slabs.
CTC vs Gross vs In-Hand Salary — The Three Numbers
Your offer letter shows CTC (Cost to Company), but the money credited to your bank every month is a much smaller number. Three salary layers connect them:
CTC — everything the employer spends per year: salary, employer EPF, gratuity provision, group insurance, any perks.
Gross Salary = CTC − employer EPF − gratuity provision − employer-funded perks. This is what enters the payroll system.
In-Hand Salary = Gross − your EPF (12% of Basic) − professional tax − income tax (TDS). This is what credits to your bank account.
CTC Components — A Standard Indian Structure
Basic Salary — typically 35–50% of CTC. Drives EPF, gratuity and HRA calculations.
HRA — usually 40% of Basic (non-metro) or 50% (metro).
Special Allowance — the catch-all balancing item.
Employer EPF — 12% of Basic, capped at ₹15,000 monthly base (statutory).
Gratuity Provision — Basic × 15 / 26, payable at 5+ years.
Other — LTA, meal coupons, group health insurance, NPS contribution.
Income Tax in In-Hand Calculation
The calculator runs the FY 2025-26 / AY 2026-27 tax engine on the entire gross + employer EPF (i.e. taxable salary). Under the New Regime a ₹75,000 standard deduction applies, and income up to ₹12 lakh is effectively tax-free thanks to the Section 87A rebate. Under the Old Regime you can claim 80C (₹1.5L), HRA, 80D, home loan interest etc. — enter the total in the deductions field above.
Professional Tax by State
Professional Tax (PT) is a state-level levy capped at ₹2,500/year. Karnataka and Maharashtra commonly deduct ₹200/month (₹2,400/year); West Bengal up to ₹2,496/year; Tamil Nadu and AP collect half-yearly. Delhi, Haryana, Punjab, UP, Rajasthan, Uttarakhand, J&K, Goa, Arunachal do not levy it — set the PT field to 0.
Worked Example — ₹15 Lakh CTC (New Regime)
CTC ₹15L · Basic 40% (₹6L) · employer EPF ₹72K · gratuity provision ~₹34.6K → Gross ≈ ₹13.93L → employee EPF ₹72K, PT ₹2.4K, income tax (new regime, no other deductions) ≈ ₹46K → In-hand ≈ ₹12.74L/year (~₹1.06L/month).
Frequently Asked Questions
What's the difference between CTC, Gross Salary and In-Hand Salary?
CTC (Cost to Company) is everything the employer spends on you in a year — salary, employer EPF, gratuity provision, perks. Gross salary is CTC minus the employer-funded retirement contributions (employer EPF + gratuity provision). In-hand salary is gross minus your own EPF, professional tax and income tax — the amount actually credited to your bank account.
Why is my in-hand salary lower than my CTC?
Three reasons: (1) employer-funded items like employer EPF and gratuity provision sit inside CTC but never reach you in cash, (2) you contribute 12% of Basic to EPF, (3) income tax and professional tax are deducted at source. On a ₹15 lakh CTC, in-hand is typically ₹10.5–11.5 lakh per year depending on the tax regime.
Which tax regime gives higher in-hand salary?
For most salaried Indians without large deductions (no home loan, low HRA), the New Regime gives higher in-hand salary because of the ₹75,000 standard deduction and the ₹12L 87A rebate. If you have HRA + 80C + 80D + home loan interest totalling over ~₹3.5L of deductions, the Old Regime can win. The calculator above runs both side-by-side.
How much is professional tax in my state?
Professional tax is a state levy capped at ₹2,500/year. The exact slab varies — Karnataka and Maharashtra deduct ₹200/month (₹2,400/year), West Bengal up to ₹2,496/year, Tamil Nadu half-yearly. A few states (Delhi, Haryana, Punjab, UP, Rajasthan, Uttarakhand) don't levy it. Adjust the input above to match your state.
Is gratuity included in CTC or in-hand?
Gratuity is shown inside CTC as a yearly provision (typically Basic × 15/26 / 12 per month), but you only receive it as a lump sum when you complete 5+ years and leave. Until then it sits as a notional component — never in your monthly bank credit.
Is the employer EPF part of my salary?
Technically the employer's 12% is part of your CTC, but you do not receive it as cash. It goes directly into your EPF account along with your own 12% contribution, growing tax-free at the EPF rate (8.25% for FY 2024-25) until retirement.