Frequently Asked Questions
In-hand salary = CTC − Employee PF (12% of basic) − Professional Tax (₹200/month in most states) − Income Tax (TDS). Your employer deducts these before crediting salary.
Typically 40–50% of CTC. A higher basic means higher PF contribution but also higher HRA eligibility.
Yes, HRA is paid as part of in-hand salary. However, the exempt portion reduces your taxable income if you pay rent.
₹50,000 standard deduction is allowed under the old tax regime. Under the new regime (default from FY 2026-27), ₹75,000 is allowed.
Depends on your deductions. If you claim HRA + 80C + NPS, old regime is often better. Use this calculator to compare both.
About this calculator
Your CTC is not what lands in your bank account. The in-hand salary is what is left after the employer's share of provident fund, your own PF, professional tax and income tax are taken out. This calculator converts an annual CTC into a monthly in-hand figure for FY 2026-27, with the breakdown of basic, HRA and special allowance.
Set the basic and HRA percentages to match your offer letter, choose the new or the old tax regime, and for the old regime add your rent and 80C so HRA exemption and deductions are counted. It assumes provident fund on the statutory ₹15,000 wage ceiling, which is the minimum most employers use. If your employer calculates PF on your full basic, your in-hand pay will be lower.
How to use it
- Enter your annual CTC.
- Set Basic % and HRA % of basic from your offer letter, and any fixed Special amount.
- Choose the Tax Regime: New Regime (default) or Old Regime.
- For the old regime, choose Metro or not, enter your Monthly Rent, 80C and Other Deductions.
- Press Calculate Take-Home to see the monthly and annual in-hand pay.
From CTC to in-hand
Gross salary = CTC − Employer PF. In-hand = Gross − Employee PF − Professional tax − Income tax (TDS). PF is 12% of basic, capped here at 12% of ₹15,000, which is ₹1,800 a month. Income tax uses FY 2026-27 slabs: the new regime with a ₹75,000 standard deduction and a ₹60,000 rebate that makes income up to ₹12 lakh of taxable income tax-free, or the old regime with ₹50,000 standard deduction, HRA exemption, 80C and other deductions. Gratuity and bonuses vary by employer and are not modelled.
Worked example
CTC ₹12,00,000, basic 40%, HRA 50% of basic, new regime
| Monthly CTC | ₹1,00,000 |
| Employer PF | ₹1,800 |
| Employee PF | ₹1,800 |
| Professional tax | ₹200 |
| Income tax (TDS) | ₹0 |
| Monthly in-hand | ₹96,200 |
| Annual in-hand | ₹11,54,400 |
The ₹12 lakh CTC pays no income tax in the new regime, because taxable income after the ₹75,000 standard deduction is about ₹11.2 lakh, under the ₹12 lakh rebate limit. Only PF and professional tax come out.
Tips and common mistakes
- Ask HR how PF is calculated. Full-basic PF lowers in-hand pay but builds a larger retirement corpus, with the same tax treatment.
- If your offer has a variable pay component, the in-hand figure is lower in months without payout and higher in payout months.
- Employer NPS under 80CCD(2) is tax-free in both regimes and can reduce tax without cutting your take-home too much.
- CTC includes things you never see monthly, like gratuity, insurance and the employer's PF. Compare offers on gross and in-hand, not CTC.
- Run the calculator again for the old regime if you pay rent and have a home loan.
Frequently asked questions
How is in-hand salary calculated from CTC?
Subtract the employer's PF (and gratuity and insurance if part of CTC), then your own PF, professional tax and income tax from the CTC and divide by twelve.
Why is my in-hand salary so much lower than CTC?
CTC includes employer contributions and benefits that you do not receive monthly, and tax and deductions reduce the rest.
What is a good basic percentage of CTC?
Most employers set basic at 40 to 50% of CTC. A higher basic raises PF and gratuity but lowers in-hand pay slightly.
Is HRA part of in-hand salary?
Yes, HRA is paid monthly. It is tax-free only in part, and only in the old regime.
Does the new regime give a higher in-hand salary?
Usually yes at moderate incomes, because it has lower slab rates and a higher standard deduction. The old regime can win with large deductions.
Does this include bonus or variable pay?
No. Add it to your CTC only if it is paid out fixed every month.