In-Hand Salary Calculator (CTC to Take-Home)

Convert your CTC into monthly in-hand salary after PF, gratuity, professional tax and income tax.

Annual CTC (₹)

Basic salary as % of CTC

Provident fund

Gratuity in CTC

Professional tax per year (₹, 0 if your state has none)

Tax regime

Old regime: other 80C investments besides PF (₹)

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Offer letters in India quote CTC, but your bank account sees a smaller number every month. This calculator starts from annual CTC and removes the employer's PF share, the gratuity provision, your own PF, professional tax and income tax for Tax Year 2026-27, then shows the monthly in-hand figure and a yearly breakdown. Use it to compare job offers or check a payslip.

What to enter in each field

Annual CTC (₹): the fixed part of the package. Leave out bonuses and ESOPs, since everything entered is treated as monthly pay.
Basic salary as % of CTC: starts at 50% and must be between 1 and 100. Since the Labour Codes took effect on 21 November 2025, allowances above half of total pay count as wages, so many employers now set basic at about half of CTC.
Provident fund: the ceiling option takes 12% of basic up to ₹25,000 a month (raised from ₹15,000 on 17 September 2026), so at most ₹3,000 a month comes from you and the same from your employer. Pick full basic if your employer contributes on all of it, or no PF if you are not a member.
Gratuity in CTC: keep it included if your offer lists it, and 4.81% of basic is taken out.
Professional tax per year (₹, 0 if your state has none): ₹2,500 by default, the top-slab amount in Maharashtra (₹200 a month, ₹300 in February) and in Karnataka for salaries of ₹25,000 a month or more. A blank box counts as 0, and anything higher is cut to ₹2,500, the yearly limit in Article 276 of the Constitution.
Tax regime and Old regime: other 80C investments besides PF: the 80C box counts only in the old regime.

From CTC to take-home, step by step

Basic = CTC × basic percentage. Employer PF = 12% of PF wages, which stop at ₹3,00,000 a year with the ceiling option.
Gratuity provision = 4.81% of basic (15/26 of a month's basic spread over 12 months).
Gross salary = CTC − employer PF − gratuity provision.
Taxable income in the new regime = gross − ₹75,000 standard deduction. In the old regime it is gross − ₹50,000 − professional tax − your PF and other 80C investments together, capped at ₹1.5 lakh under Section 80C (now section 123).
Tax uses the slabs for a resident below 60, then rebate, marginal relief, any surcharge and 4% cess.
Annual in-hand = gross − your PF − professional tax − income tax; divide by 12 for the month.

Worked example: ₹18 lakh CTC in the new regime

With basic at 50%, PF on the ₹25,000 ceiling, gratuity included and ₹2,500 professional tax:

Basic is ₹9,00,000. Employer PF is 12% of ₹3,00,000 = ₹36,000, and the gratuity provision is 4.81% of ₹9,00,000 = ₹43,290.
Gross salary = 18,00,000 − 36,000 − 43,290 = ₹17,20,710.
Taxable income = 17,20,710 − 75,000 = ₹16,45,710. Slab tax is ₹20,000 (₹4–8 lakh at 5%) + ₹40,000 (₹8–12 lakh at 10%) + ₹60,000 (₹12–16 lakh at 15%) + ₹9,142 (20% of ₹45,710) = ₹1,29,142. Adding 4% cess gives ₹1,34,308.
Annual in-hand = 17,20,710 − 36,000 − 2,500 − 1,34,308 = ₹15,47,902, or ₹1,28,992 a month.

Same defaults, one change per row:

CTC and setting	Tax a year	In-hand a month
₹12 lakh, new regime	₹0	₹91,387
₹18 lakh, PF on full basic	₹1,20,699	₹1,18,126
₹18 lakh, old regime, ₹1.5 lakh 80C	₹2,78,682	₹1,16,961

Moving PF to full basic lowers take-home by ₹10,866 a month, yet ₹1,44,000 more a year lands in your EPF account (₹72,000 from you, ₹72,000 from the employer) and tax falls by ₹13,609. The EPF Calculator projects what the extra could grow to by retirement.

Where tax starts, and when the old regime can win

Tax Year 2026-27, the first under the Income-tax Act, 2025, keeps the slabs of FY 2025-26. The rebate under Section 87A (section 156 of the new Act) wipes out tax when taxable income is ₹12 lakh or less, so with the ₹75,000 standard deduction a gross salary of ₹12.75 lakh pays nothing. With this tool's defaults that point is a CTC of about ₹13.43 lakh: ₹13,43,000 shows nil tax and ₹13,44,000 shows ₹704. Just above the limit, marginal relief caps the tax before cess at the income above ₹12 lakh (₹55,330 at a ₹14 lakh CTC). With 4% cess that CTC pays ₹57,543, not the ₹71,031 of the plain slabs, and takes home ₹1,02,857 a month, ₹160 less than at ₹13.43 lakh.

The old regime here subtracts only the standard deduction, professional tax and 80C. At ₹18 lakh CTC it costs ₹1,44,374 more than the new regime even with the full ₹1.5 lakh of 80C. It wins only with large HRA, home-loan interest or health insurance deductions, which this tool does not model. Put your actual figures into the Income Tax Calculator, and the HRA Calculator if you pay rent. TDS follows the new regime unless you declare the old one, and salaried people without business income can still choose either regime each year in the return.

What this estimate leaves out

HRA exemption, LTA, meal cards and employer NPS contributions.
Variable pay and bonuses, which raise TDS in the months they are paid.
EDLI and PF admin charges (0.5% of PF wages each) that some employers include in CTC, and ESI for lower-paid staff.
Other income such as interest or rent, and the senior-citizen slabs.

Treat the result as an estimate, not tax or financial advice.

Frequently asked questions

What is the in-hand salary for 12 LPA?

With basic at 50% of CTC, PF capped at ₹3,000 a month, gratuity inside CTC and ₹2,500 professional tax, a ₹12 lakh CTC works out to about ₹91,387 a month under the new regime, with no income tax. A different basic percentage or PF option will change it.

Why is my in-hand salary much lower than CTC divided by 12?

CTC counts the employer's PF and the gratuity provision, which never reach your account each month. Your own PF, professional tax and TDS are then cut from what is left.

How much salary is tax-free in the new regime for 2026-27?

Salary up to ₹12.75 lakh a year pays no income tax, because the ₹75,000 standard deduction brings taxable income down to ₹12 lakh and the rebate covers the tax on that. Above it, marginal relief softens the jump.

Does a higher basic salary reduce take-home pay?

Yes. With PF on the full basic, 12% of a bigger basic goes to PF from you and the same again comes out of CTC, and even on the ₹25,000 ceiling option the gratuity provision of 4.81% of basic keeps growing. At ₹18 lakh CTC with capped PF, take-home is ₹1,29,563 a month at 40% basic, ₹1,28,992 at 50% and ₹1,28,420 at 60%.

Is professional tax deductible in the new tax regime?

No. States that levy it still deduct it from your salary, but only the old regime lets you subtract it when working out taxable income. No state can charge more than ₹2,500 a year.

How much PF is deducted from salary after the ceiling was raised to ₹25,000?

From 17 September 2026 the statutory deduction is 12% of basic up to ₹25,000 a month, so at most ₹3,000 a month from you. Some employers contribute on the full basic, which takes a larger amount.

Why does the tax on my payslip change from month to month?

Employers revise TDS during the year as you submit investment proofs or receive bonuses, so deductions are rarely equal. This calculator spreads the annual tax evenly over 12 months.