How is in-hand salary calculated from CTC?

Your CTC is first split into components (Basic, HRA, employer PF, gratuity provision, and a balancing special allowance). Employer PF and gratuity never reach your bank account, so subtracting them gives your gross salary. From gross salary, your own PF contribution, Professional Tax, and income tax (after any rebate) are deducted to arrive at your net in-hand pay — this calculator runs that exact pipeline and shows every step.

Should I choose the new tax regime or the old regime?

It depends entirely on how much of the old regime's deductions (80C, HRA exemption, home loan interest, 80D) you can actually use. Since Budget 2025, the new regime pays zero income tax up to ₹12.75L gross salary and usually wins outright below that level. Above it, the old regime can catch up or win if you have a large HRA claim and a maxed-out 80C/home-loan interest — toggle the regime switch above and compare your own numbers rather than assuming one is always better.

Why will my actual payslip be different from this estimate?

This tool assumes a typical salary structure (Basic as a % of CTC, HRA as a % of Basic) because it can't see your specific offer letter. Real companies structure CTC differently — what counts as Basic vs allowances, whether bonus/insurance/ESOPs are bundled in, and the exact PF/gratuity policy all vary by employer. Use the Basic % slider to get closer to your own offer letter, but treat the result as a close estimate, not your exact payslip.

What is Professional Tax and does it apply to me?

Professional Tax (PT) is a small state-level tax on salaried income, capped nationally at ₹2,500/year, collected by the state you're on payroll in — not every state charges it (Delhi, Haryana, and Uttar Pradesh are among those that don't). Select your actual state of employment above; picking the wrong one can shift your monthly number by a couple hundred rupees.

Is gratuity part of my monthly in-hand salary?

No. Gratuity is a CTC provision — roughly half a month's Basic per year of service — that your employer sets aside but only pays out as a lump sum when you leave, after the eligibility period (5 years for regular employees, 1 year for fixed-term employees under the new labour codes). It reduces the CTC available for your monthly salary, but you never see it in a monthly payslip.

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What will your in-hand salary actually be?

An offer letter's CTC number is rarely what lands in your account every month. Enter your CTC (or the monthly take-home you're aiming for) and see exactly where the rest goes — PF, Professional Tax, gratuity, and income tax under either regime.

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Adjust the assumptions below.

What do you want to calculate?

Annual CTC

Your full cost-to-company, as stated in your offer letter, per year.

Tax regime

PF contribution

Professional Tax — state of employmentProfessional Tax is levied by your state of employment, not income tax law — always select the state your payroll runs from.

Basic pay as % of CTC50%

Employer discretion — commonly 35-50%+. Higher Basic means higher PF/gratuity but usually similar take-home.

HRA as % of Basic40%

Employer policy — commonly 40-50% of Basic.

Estimated monthly in-hand

₹85,387

₹10,24,640/year in-hand, on ₹12.00 L CTC.

The new regime nets you ~₹9,354/month more than the old regime here.

Where your CTC goes

Basic pay: ₹6,00,000
HRA: ₹2,40,000
Special allowance (balancing): ₹2,59,140
Employer PF contribution: ₹72,000
Gratuity provision: ₹28,860

Gross salary → net in-hand

Employee PF contribution: ₹72,000
Professional Tax: ₹2,500

This is an estimate built on editable assumptions, not a payslip — see the full disclaimer below.

How the numbers are built

CTC, in-hand, PF, PT, gratuity — in plain language.

What's the difference between CTC and in-hand salary?

CTC (cost-to-company) is everything your employer spends on you in a year — including money you never see monthly, like employer PF and gratuity provision. In-hand (take-home) salary is what actually lands in your bank account each month, after PF, Professional Tax, and income tax are deducted.

New tax regime or old tax regime — which should I pick?

The new regime (default since Budget 2023, revised again in Budget 2025) offers lower slab rates and a rebate that zeroes out tax up to ₹12.75L gross salary, but disallows most deductions. The old regime keeps HRA exemption, 80C, and home-loan-interest deductions, but has higher slab rates. There's no universal answer — it depends on how much of the old regime's deductions you can genuinely use.

What is PF (Provident Fund)?

Both you and your employer contribute 12% of Basic pay to your EPF account — a forced retirement saving, not cash you can spend today. Some employers cap this at the ₹15,000/month statutory wage ceiling (₹1,800/month each side); others contribute 12% of your actual, uncapped Basic. Toggle this above since it changes your take-home noticeably at higher salaries.

What is Professional Tax?

A small state-level tax on salaried income (not to be confused with income tax), capped nationally at ₹2,500/year. It's levied by the state you're on payroll in, and several states/UTs — Delhi, Haryana, and Uttar Pradesh among them — charge none at all. Always select your real state of employment for an accurate number.

What is gratuity, and why doesn't it show up in my monthly pay?

Gratuity is roughly half a month's Basic pay per year of service, set aside by your employer as a CTC provision. It's only paid out as a lump sum when you leave the company — after 5 years of continuous service generally (1 year for fixed-term employees under the new labour codes) — never as part of your monthly salary.

Please read before you rely on this

This is an estimate — not your payslip, and not tax advice.

This tool estimates take-home pay from adjustable assumptions — it cannot see your actual offer letter, so treat every figure as an estimate, not a guarantee.
The Basic-as-%-of-CTC assumption (default 50%) is a guess. Real companies range roughly 35-50%+, and this is shifting further under the new labour codes' "50% wage" rule.
Professional Tax is state-specific and defaults to an assumption — some states/UTs charge none at all. Always select your real state of employment.
PF may or may not be capped at the ₹15,000 statutory wage ceiling, depending on your employer's policy — toggle it, but this tool doesn't know which applies to you.
Gratuity is never part of monthly in-hand pay. It's a CTC provision, paid as a lump sum only on exit, after the eligibility period.
Old-regime deductions (80C/HRA/home loan interest) only reduce your tax if you genuinely have and can substantiate those investments or expenses.
This is not tax advice. It doesn't account for other income, advance tax, or your specific residential/employment status — consult a chartered accountant or the Income Tax Department's official calculator before making financial decisions.

FAQ

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