Career & HR

Salary, tax & workplace calculators

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Career & HR · India

CTC to In-Hand Salary Calculator

Break a CTC offer down to real monthly in-hand pay. Accurate, instant and free — for India.

Cost to Company
Tax regime

What these mean:

EPF basis

What these mean:

City type

What these mean:

Monthly in-hand
₹85,395in-hand / month
Annual in-hand
₹10,24,740
In-hand % of CTC
85.4%
Income tax
₹0
Employee EPF
₹72,000
Professional tax
₹2,400

New regime: ₹85,395/mo (₹10,24,740/yr) on CTC ₹12,00,000. Gross ₹10,99,140, EPF ₹72,000, PT ₹2,400, income tax ₹0. In-hand is 85.4% of CTC.

CTC breakdown — New regime85.4% in-hand
CTC (Cost to Company)₹12,00,000

CTC components

Basic salary₹6,00,000
HRA₹2,40,000
Special allowance₹2,59,140
Employer EPF (cost)₹72,000
Gratuity (provision)₹28,860
Gross salary (CTC − employer EPF − gratuity)₹10,99,140

Deductions from gross

Employee EPF- ₹72,000
Professional tax- ₹2,400
Income tax- ₹0
Annual in-hand₹10,24,740

Employer EPF (12% of basic) and gratuity (4.81% of basic) are part of CTC but never reach your bank account. EPF ceiling: ₹15,000/mo basis if “Capped” selected.

Methodology — CTC Structure

What goes into a CTC package?

is the total annual spend your employer incurs on you. It includes your in-hand components (basic, HRA, special allowance) as well as employer-side contributions that never reach your bank — employer and provisioning. Understanding this split is the first step to knowing what you actually take home.

CTC decomposition

Basic / HRA / allowances + employer costs

CTC structure
CTCbasicHRAspecial allow.employer EPFgratuity

Typical structure: basic = 40–50% of CTC; HRA = 40% (non-metro) / 50% (metro) of basic; employer EPF = 12% of basic; gratuity = 4.81% of basic. Special allowance fills the remainder.

Gross salary

CTC minus employer-side costs

Gross salary from CTC
grossCTCemployer EPFgratuity

Example: ₹12L CTC with 50% basic (₹6L) → employer EPF ₹72,000 (12% × ₹6L) + gratuity ₹28,860 (4.81% × ₹6L) = gross ₹10,99,140.

Methodology — In-Hand Calculation

From gross salary to in-hand

is gross minus your share of EPF, professional tax, and income-tax TDS. Three deductions, applied in sequence.

Employee EPF

12% of basic (₹15,000/mo ceiling optional)

Employee EPF deduction
employee EPF12%min(basic, ₹15,000/mo)

Annual ceiling basis: ₹1,800/mo × 12 = ₹21,600/yr. On ₹12L CTC with 50% basic (₹6L/yr): EPF = ₹72,000 (actual basis).

In-hand formula

gross → EPF → PT → tax

Annual in-hand
in-handgrossemp. EPFPTincome tax

Example: gross ₹10,99,140 − EPF ₹72,000 − PT ₹2,400 − income tax ₹0 (§87A) = in-hand ₹10,24,740 ≈ ₹85,395/mo.

Methodology — Tax Regimes

New regime vs old regime

India offers two income-tax regimes. The default new regime has lower slab rates but removes most exemptions. The old regime lets you claim , 80C, 80D, and more — but at higher slab rates.

New regime (default)

Lower slabs + ₹75,000 std deduction + §87A

New regime slabs (FY 2025-26)
0%up to ₹4,00,000
5%₹4,00,001–₹8,00,000
10%₹8,00,001–₹12,00,000
15%₹12,00,001–₹16,00,000
20%₹16,00,001–₹20,00,000
25%₹20,00,001–₹24,00,000
30%₹24,00,001+

₹75,000 standard deduction before slabs. → zero tax up to ₹12,00,000 taxable. 4% on top.

Old regime + HRA exemption

Higher slabs, claim HRA / 80C / 80D

HRA exemption — Sec 10(13A)
HRA exemptmin(HRA received,50%/40% × basic,rent − 10% × basic)

Metro (Mumbai/Delhi/Kolkata/Chennai) = 50%; non-metro = 40%. Old regime slabs: 5% (₹2.5L–5L), 20% (₹5L–10L), 30% (10L+). Claim 80C (₹1.5L), 80D (health ins.), NPS to reduce taxable income further.

Related tools

To see your net pay from a gross (not CTC) salary, use the Take-Home Salary Calculator. To see how much of a raise you keep after tax, use the Salary Hike Calculator.
FAQ

Frequently asked questions

CTC (Cost to Company) is everything your employer spends on you — basic, HRA, allowances, plus their EPF and gratuity contributions. Gross salary is CTC minus those employer contributions. In-hand (take-home) is gross minus your own EPF, professional tax, and income tax. In-hand is typically 80-90% of CTC at lower incomes, falling as income tax rises.

Subtract the employer EPF (12% of basic) and gratuity (4.81% of basic) from CTC to get gross salary; then subtract your own EPF (12% of basic), professional tax (up to ₹2,500/yr), and income-tax TDS. The calculator shows every line.

Because CTC includes money that never reaches your bank account: the employer's EPF and gratuity provisioning, plus the deductions taken from your salary (your EPF share, professional tax, and income tax). On a ₹12,00,000 CTC the in-hand is roughly ₹10,24,740 — about 85%.

For most salaried people without large 80C/HRA/home-loan deductions, yes — the new regime's lower slab rates and the §87A rebate (zero tax up to ₹12,00,000 taxable) usually win. The old regime can be better if you claim significant HRA or 80C/80D. The calculator compares both.

No. Professional tax is state-levied and capped at ₹2,500 per year. Several states — Delhi, UP, Haryana, Rajasthan, Punjab — charge none. The calculator lets you pick your state.

Sources

Method, assumptions & references

Methodology: CTC decomposed as basic (user-configurable %) + HRA (40%/50% of basic) + employer EPF (12% of basic) + gratuity (4.81% of basic) + special allowance (residual). Gross = CTC − employer EPF − gratuity. In-hand = gross − employee EPF (12% of basic, optional ₹15k/mo ceiling) − professional tax − income tax. New regime: ₹75,000 standard deduction + §87A rebate + 4% cess. Old regime: HRA lowest-of-three exemption + 80C/80D deductions. This calculator does not model NPS (80CCD(2)) employer contributions, leave encashment, or LTA.

Estimates based on standard assumptions

Results are annual estimates. The basic-% assumption (default 50%) significantly affects EPF and HRA. For a verified payslip breakdown, consult your HR department or a qualified CA. For your actual gross-to-in-hand deductions, use the Take-Home Salary Calculator.

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