Turn your annual CTC into a real monthly in-hand figure in seconds.
India · new tax regime · FY 2026-27
Most Indian companies set basic at 40–50% of CTC. PF & gratuity are calculated on basic.
Salary breakdown (annual)
Monthly in-hand
₹85,395
₹10,24,740 per year
Estimate only. Actual pay varies with your salary structure, allowances, HRA exemption and chosen tax regime.
Your CTC is what a company spends on you, not what lands in your bank account. The gap between CTC vs in-hand salary trips up even experienced professionals every time they switch jobs. Between employer PF, gratuity, your own PF contribution, professional tax and income tax, the take-home is always lower than the headline number on your offer letter. This free take home calculator is built for India: it breaks down every deduction so you know your actual monthly in-hand salary before you accept an offer. If you have been trying to understand how in-hand salary vs CTC in India really works, this is the full breakdown, plus a tool that does the math for you.
We start from your annual CTC and estimate Basic salary at around 50% of CTC, since most Indian companies structure it that way. Two items inside your CTC never reach you as cash: the employer's PF contribution (12% of Basic) and gratuity (4.81% of Basic). Removing these gives your gross salary, which is the actual pay the company runs deductions on.
From gross, we subtract your own deductions. Your employee PF is another 12% of Basic and goes into your retirement account. Professional tax is a flat state levy of about ₹2,400 a year. Income tax is calculated under the new regime for FY 2026-27, applying the ₹75,000 standard deduction and the Section 87A rebate, which makes tax zero up to ₹12 lakh of taxable income; a 4% health and education cess is added on any tax due.
Whatever remains after all three deductions is your net in-hand pay. Divide it by twelve and you have your realistic monthly take-home. Actual figures vary with company structure, allowances and chosen tax regime, so treat this as a close estimate rather than a payslip.
Start with CTC, remove employer PF and gratuity to get gross salary, then subtract employee PF, professional tax and income tax. What is left is your annual in-hand pay, which you divide by twelve for the monthly figure.
CTC is the total cost a company bears for you, including contributions like employer PF and gratuity that you never receive as cash. In-hand salary is what actually reaches your bank account each month after every deduction.
Under the new regime for FY 2026-27, income up to ₹12 lakh of taxable income attracts zero tax thanks to the Section 87A rebate, and the ₹75,000 standard deduction lifts that threshold further on salary. So a salary around ₹12 lakh typically results in no income tax.
CTC bundles in employer PF, gratuity and other contributions that are costs to the company but not paid to you directly. On top of that, your own PF, professional tax and income tax are deducted from gross, so the amount you take home is always noticeably lower than the CTC figure.
CTC vs in-hand salary differ because CTC bundles costs you never receive as cash — the employer's PF contribution (12% of basic) and a gratuity provision (about 4.81% of basic). Your gross salary is CTC minus those two. From gross, your own PF, professional tax and income tax are then deducted. What survives is your in-hand pay, which is why an ₹18 lakh CTC can land around ₹1.2 lakh a month rather than the ₹1.5 lakh the headline suggests.
The take home calculator estimates Basic at around 50% of CTC and splits the rest into HRA and allowances. It removes the employer PF contribution and gratuity provision to reach your gross salary, then subtracts your employee PF (12% of Basic), professional tax (about ₹2,400 a year) and income tax under the new regime for FY 2026-27, before showing the monthly figure that remains.
Six things sit between CTC and in-hand salary in India: employer PF and gratuity (part of CTC but never paid to you as cash), then your own PF, professional tax and income tax deducted from gross. Under the new regime for FY 2026-27, taxable income up to ₹12,00,000 is effectively tax-free after the Section 87A rebate, and salaried people also get a ₹75,000 standard deduction — so lower salaries often keep their entire gross apart from PF and professional tax.
Already know your package? Jump straight to a full breakdown for your CTC — each page shows the monthly figure, every deduction, and how the answer changes with your basic-salary percentage.
Once you know your take-home, dig into the pieces that shape it:
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