Question 1

What is the difference between CTC and in-hand salary?

Accepted Answer

CTC (Cost to Company) is the total yearly cost of employing you, including parts you never receive in cash — employer PF and gratuity. In-hand salary is what actually reaches your bank after those employer contributions, employee PF, ESI (if eligible), professional tax and income tax (TDS) are taken out.

Question 2

Should I choose the old or new tax regime?

Accepted Answer

For FY 2026-27 the new regime is the default and usually wins for salaried people, because of lower slab rates, a ₹75,000 standard deduction and the 87A rebate (no tax up to ₹12 lakh taxable income). The old regime can still win if your HRA exemption, 80C and 80D add up to more than that rate cut. Use the comparison on this page to see which one actually puts more money in your account.

Question 3

How is in-hand salary calculated from CTC?

Accepted Answer

Basic is taken as a % of fixed CTC (CTC minus bonus). HRA, employer PF and gratuity come off that basic; special allowance is the leftover. Gross is CTC minus employer PF, gratuity and other employer benefits, plus bonus. Then employee PF, ESI (if monthly gross is ₹21,000 or less), professional tax and income tax are deducted. What remains, divided by 12, is monthly in-hand.

Question 4

Is EPF calculated on full basic salary or capped at ₹15,000?

Accepted Answer

By default this calculator uses 12% of full basic for employee PF. Some companies apply the EPFO wage ceiling of ₹15,000 a month. If your employer does not deduct PF at all, pick “No PF deducted”. Under a flat CTC, employer PF is not carved out of the package, but employee PF can still come off your in-hand.

Question 5

How much of my CTC will I actually get in hand?

Accepted Answer

Take-home is always lower than CTC because employer PF and gratuity never hit your account, and employee PF, professional tax and TDS come off gross. Under the FY 2026-27 new regime many people around ₹12 lakh CTC pay no income tax (87A rebate), so in-hand is mainly CTC minus PF, gratuity and PT — often close to 85–90% of CTC. Higher packages lose more to tax. Enter your CTC above for the exact split.

Question 6

What percentage of CTC is basic salary?

Accepted Answer

Many private companies set basic around 40% of fixed CTC (CTC minus bonus). This calculator defaults to 40% and lets you slide between 30% and 55% to match your offer letter. Basic drives HRA, PF and gratuity, so a higher basic usually means higher PF (better for retirement, slightly lower in-hand).

Question 7

My CTC is above ₹12.75 lakh, why does the calculator still show zero tax?

Accepted Answer

The ₹12.75 lakh tax-free limit under the new regime applies to gross salary, not CTC. Employer PF and gratuity are removed from CTC first, so gross is usually 5–10% lower than CTC. A CTC only slightly above ₹12.75 lakh can still have taxable income within the 87A rebate zone. Check the taxable-income note under Income Tax in the breakdown.

Question 8

What if my employer doesn't deduct PF?

Accepted Answer

Some employers, especially very small companies or certain contract roles, don’t deduct PF at all. Selecting “No PF deducted” removes employee PF (and employer PF, if it was in CTC). On a flat CTC, employer PF and gratuity are already not carved out — take-home is higher, but you won’t build a PF corpus unless employee PF is still deducted.

Question 9

What is an in-hand salary calculator?

Accepted Answer

An in-hand salary calculator converts your annual CTC into the monthly amount that actually lands in your bank account after employer contributions (PF, gratuity), employee PF, professional tax and income tax (TDS) under the current tax slabs.

Question 10

Does this calculator use the FY 2026-27 tax slabs?

Accepted Answer

Yes. Income tax is computed with the same FY 2026-27 (AY 2027-28) engine as our Income Tax Calculator — including the ₹75,000 standard deduction and Section 87A rebate (no tax up to ₹12 lakh taxable income) under the new regime.

Question 11

Is EPF deducted from in-hand salary?

Accepted Answer

Yes. Your 12% employee PF contribution is deducted from gross salary every month. The matching 12% employer PF sits inside CTC but is not part of in-hand pay — it goes to your EPFO account.

Question 12

What is professional tax on salary?

Accepted Answer

Professional tax is a state levy deducted from salary, generally capped around ₹2,500 a year. This calculator lets you pick your state (Karnataka defaults to ₹2,400 a year) or turn it off if it does not apply. PT is not applied when monthly gross is below ₹15,000.

Income Range (₹)	Tax Rate
0 – 4,00,000	Nil
4,00,001 – 8,00,000	5%
8,00,001 – 12,00,000	10%
12,00,001 – 16,00,000	15%
16,00,001 – 20,00,000	20%
20,00,001 – 24,00,000	25%
Above 24,00,000	30%

Income Range (₹)	Tax Rate
0 – 2,50,000	Nil
2,50,001 – 5,00,000	5%
5,00,001 – 10,00,000	20%
Above 10,00,000	30%

CTC (₹ Lakh)	In-Hand (₹ Lakh/yr)	In-Hand (₹/month)	% of CTC
3	2.63	21,919	88%
5	4.40	36,665	88%
8	7.05	58,784	88%
12	10.59	88,276	88%
18	14.65	1,22,045	81%
25	19.35	1,61,226	77%
30	22.39	1,86,585	75%

Salary Calculator — CTC to In-Hand Take-Home Salary

1. Enter your details

Understanding Your Salary

What is CTC and In-Hand Salary?

How is In-Hand Salary Calculated?

Salary Components Explained

FY 2026-27 Tax Regime Slabs

New Tax Regime (FY 2026-27)

Old Tax Regime (Below 60)

Quick Reference: CTC vs In-Hand

Frequently Asked Questions

Related Calculators