CTC to In-Hand Salary Calculator
India FY 2025-26 · New & Old Regime · PF, PT & TDS included
Enter Your CTC Details
Annual figures — results update automatically
Monthly CTC vs. In-Hand Comparison
Key Formulas
HRA = 50% Basic (metro) / 40% Basic (non-metro)
EPF = 12% of Basic (max ₹1,800/mo each)
Deductions = EPF + PT + TDS
In-Hand = Gross − Deductions
New Regime std. deduction: ₹75,000 | Old Regime: ₹50,000 + 80C (₹1.5L) + HRA exemption | Cess: 4% on tax | FY 2025-26
Related Calculators
What is CTC (Cost to Company)?
CTC, or Cost to Company, is the total annual amount a company spends on an employee. It is a comprehensive figure that includes not just your take-home salary but also the employer's contributions to statutory benefits such as Provident Fund (EPF), gratuity, group health insurance premiums, and any other perquisites the company provides. When an HR team quotes you a salary package of ₹12 LPA, that number is your CTC — your actual in-hand salary will be lower.
Understanding CTC is critical when evaluating a job offer in India because two offers with the same CTC can result in very different take-home salaries depending on how the salary is structured — specifically the proportion of basic salary, the inclusion or exclusion of employer PF, bonus terms, and the company's policy on allowances.
Difference Between CTC and In-Hand Salary
In-hand salary (also called take-home salary or net salary) is what actually gets credited to your bank account each month. The gap between CTC and in-hand is created by several layers of deductions:
- Employer PF contribution (12% of Basic) — This is included in your CTC but goes directly into your EPF account, not your bank account.
- Employee PF contribution (12% of Basic) — This is deducted from your gross salary and also goes into EPF.
- Professional Tax — A state-level tax applicable in Maharashtra (₹2,500/year), Karnataka, Tamil Nadu, and others.
- Income Tax (TDS) — Tax Deducted at Source based on your applicable tax slab.
For a ₹12 LPA CTC in Maharashtra under the new tax regime, the typical monthly in-hand salary is approximately ₹78,000–₹82,000, depending on the salary structure chosen.
How to Calculate In-Hand Salary from CTC (Step-by-Step)
- Determine Basic Salary: Basic = 40% of CTC for non-metro, 50% for metro cities.
- Calculate HRA: HRA = 40% of Basic (non-metro) or 50% of Basic (metro).
- Calculate Employer PF: 12% of Basic, capped at ₹1,800/month. This is part of CTC but deducted before arriving at gross.
- Calculate Special Allowance: Special Allowance = CTC − Basic − HRA − Employer PF − Bonus − LTA − Other Allowances.
- Compute Gross Salary: Gross = Basic + HRA + Special Allowance + Bonus + LTA + Others.
- Compute Taxable Income: Under New Regime: Gross − Employer PF − ₹75,000 standard deduction. Under Old Regime: Gross − Employer PF − ₹50,000 std. deduction − Employee PF (80C) − HRA exemption − LTA.
- Apply Income Tax Slabs: Calculate TDS using the applicable slab rates, 87A rebate, surcharge, and 4% cess.
- Deduct PT and EPF: Add Professional Tax and Employee PF to deductions.
- Arrive at In-Hand: In-Hand = Gross Salary − Total Deductions.
Salary Deductions in India Explained (PF, PT, TDS)
EPF (Employees' Provident Fund)
EPF is governed by the EPFO under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. Both you and your employer contribute 12% of your basic salary each month. The statutory wage ceiling for EPF calculation is ₹15,000/month, making the maximum EPF deduction ₹1,800/month per side. Your EPF accumulates with 8.1%+ annual interest (as declared by EPFO) and serves as a retirement corpus.
Professional Tax (PT)
Professional Tax is a state-level tax levied on salaried employees. It is capped at ₹2,500 per year by the Constitution. States like Maharashtra charge ₹2,500/year, Karnataka charges ₹2,400/year, Tamil Nadu and West Bengal also charge ₹2,400/year. Delhi and Gujarat do not levy professional tax. PT is deducted from your monthly salary — Maharashtra deducts ₹200/month for 11 months and ₹300 in one month.
Income Tax (TDS)
Your employer deducts income tax at source (TDS) from your monthly salary based on your projected annual income. The TDS amount is computed after considering your declared investments, exemptions, and the applicable tax regime you choose at the start of the financial year. TDS is deposited with the government monthly and reflected in Form 16 issued to you after year-end.
New Tax Regime vs Old Tax Regime 2025 Comparison
| Feature | New Regime (FY 2025-26) | Old Regime |
|---|---|---|
| Standard Deduction | ₹75,000 | ₹50,000 |
| 0% slab | Up to ₹3,00,000 | Up to ₹2,50,000 |
| 5% slab | ₹3L – ₹7L | ₹2.5L – ₹5L |
| 10% slab | ₹7L – ₹10L | — |
| 15% slab | ₹10L – ₹12L | — |
| 20% slab | ₹12L – ₹15L | ₹5L – ₹10L |
| 30% slab | Above ₹15L | Above ₹10L |
| 87A Rebate | Up to ₹25,000 (if income ≤ ₹7L — zero tax) | Up to ₹12,500 (if income ≤ ₹5L) |
| HRA Exemption | Not available | Available |
| Section 80C | Not available | Up to ₹1,50,000 |
| Section 80D (Medical) | Not available | Available |
| NPS 80CCD(1B) | Not available | Up to ₹50,000 extra |
| Home Loan Interest (24b) | Not available (self-occupied) | Up to ₹2,00,000 |
| Health & Education Cess | 4% on tax | 4% on tax |
| Best for | Lower deduction claimants, ≤₹7L income | High-deduction claimants (HRA + 80C + home loan) |
Sample CTC Breakup for ₹12 LPA (Worked Example)
Let us take a practical example: an employee in Mumbai with ₹12,00,000 CTC, no bonus, under the New Tax Regime for FY 2025-26.
| Component | Monthly (₹) | Annual (₹) |
|---|---|---|
| Basic Salary (50% of CTC) | 50,000 | 6,00,000 |
| HRA (50% of Basic — metro) | 25,000 | 3,00,000 |
| Employer PF (12% Basic, capped) | 1,800 | 21,600 |
| Special Allowance | 23,200 | 2,78,400 |
| Gross Salary | 98,200 | 11,78,400 |
| Employee PF (12% Basic) | 1,800 | 21,600 |
| Professional Tax (Maharashtra) | ~209 | 2,500 |
| Income Tax TDS (New Regime) | ~5,000 | ~60,000 |
| Net In-Hand | ~91,200 | ~10,94,300 |
Note: The income tax above is approximate. The taxable income under the new regime = ₹12,00,000 − ₹21,600 (employer PF) − ₹75,000 (std. deduction) = ₹11,03,400. Tax on this comes to approximately ₹1,00,510 including 4% cess, i.e., ~₹8,376/month TDS.