In-Hand Salary Calculator
Enter your annual CTC to see what really lands in your bank each month. Every part of the breakup is shown, along with a side-by-side view of the new and old tax regimes.
Your package
Your take-home
Earnings
| Basic salary | ₹8,00,000 |
| House rent allowance | ₹4,00,000 |
| Special allowance | ₹7,39,920 |
| Gross salary (annual) | ₹19,39,920 |
Employer contributions (part of CTC)
| Employer PF | ₹21,600 |
| Gratuity provision | ₹38,480 |
Deductions
| Employee PF | ₹21,600 |
| Professional tax | ₹2,400 |
| Income tax (including cess) | ₹1,79,903 |
| Total deductions | ₹2,03,903 |
Annual summary
| Annual CTC | ₹20,00,000 |
| Annual take-home | ₹17,36,017 |
| Take-home as % of CTC | 87% |
New regime is cheaper for you by ₹2,14,752 a year in tax.
An estimate for planning. Your actual payslip depends on how your employer structures CTC, your state's professional tax slabs, and the declarations you submit for the year.
Why in-hand pay is so much lower than CTC
Cost to company means just that: all your employer spends on you in a year. A good share of it never reaches your bank. Employer PF goes into your PF account. The gratuity provision is paid years later, and only if you stay long enough. Income tax and professional tax come out before you are paid.
The gap between CTC and annual take-home usually runs 25 to 35 per cent. It widens as pay rises, because more of your income lands in the higher slabs.
How the calculation works
The calculator moves from CTC down to net pay in four steps.
- Split the CTC. Basic is set as a share of CTC, often 40 to 50 per cent. HRA is a share of basic, at 50 per cent in metros and 40 per cent elsewhere. What is left becomes special allowance.
- Take out employer retirals. Employer PF at 12 per cent of basic and the gratuity provision at 4.81 per cent of basic come off to give gross salary.
- Apply deductions. Employee PF at 12 per cent of basic, professional tax as your state levies it, and income tax on gross salary.
- Divide by twelve to reach monthly in-hand pay.
Employers build CTC in different ways. Treat this split as a close model, not an exact copy of your offer letter.
The provident fund ceiling
EPF runs under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, and EPFO sets the rate at 12 per cent. It is worked out on a wage ceiling of ₹15,000 a month. That caps the required share at ₹1,800 a month from each side. Many employers apply the cap. Others pay 12 per cent of full basic with no cap, which lifts CTC but trims take-home.
The toggle lets you match your employer's practice. If you are not sure which applies, check the PF line on a recent payslip against 12 per cent of your basic.
New regime or old regime
Under FY 2026-27 (AY 2027-28), the new regime gives a ₹75,000 standard deduction. It also gives a full rebate under section 156 of the Income-tax Act, 2025, the successor to section 87A, up to ₹12,00,000 of taxable income. It allows nothing else. The old regime gives a smaller ₹50,000 standard deduction and a lower ₹5,00,000 rebate line, but it does allow 80C, 80D, HRA exemption, home loan interest and the rest of the old Chapter VI-A deductions.
The section numbers changed on 1 April 2026, when the Income-tax Act, 2025 replaced the 1961 Act. The rates did not: the Finance Act 2026 kept every slab, the rebate, the surcharge bands and the 4 per cent cess as they were.
The old regime only wins when your deductions are big enough to beat the wider slabs and larger rebate on the new side. The calculator runs both and names the cheaper one. Enter your expected deductions to make that comparison mean something.
| New regime | Old regime | |
|---|---|---|
| Standard deduction | ₹75,000 | ₹50,000 |
| Section 156 rebate up to | ₹12,00,000 taxable income | ₹5,00,000 taxable income |
| 80C, 80D, HRA exemption | Not available | Available |
| Highest surcharge rate | 25% | 37% |
Professional tax varies by state
Professional tax is a state levy, not a central one, so both the slabs and the yearly maximum differ. Maharashtra, Karnataka, West Bengal, Tamil Nadu and Telangana all charge it. Delhi, Haryana, Uttar Pradesh and Rajasthan do not. Where it is charged, the yearly cap is ₹2,500.
The calculator starts at ₹200 a month, the common figure in states that levy it. Set it to zero if your state does not.
Sources
Slabs, rebate and standard deduction were checked against the Income Tax Department's published tables and the Finance Act 2026, which changed none of them for tax year 2026-27. The provident fund rate and the ₹15,000 wage ceiling come from EPFO.
- Income Tax Department — slab rates, surcharge, cess and rebate for individualsincometax.gov.in
- Central Board of Direct Taxes — Income-tax Act, bare text and section-wise searchincometaxindia.gov.in
- Employees' Provident Fund Organisation — contribution rates and the wage ceilingepfindia.gov.in
- Ministry of Finance — Union Budget 2026-27 and the Finance Billindiabudget.gov.in
This calculator is an estimate, not tax or legal advice. Where a figure here and the statute disagree, the statute governs.
Frequently Asked Questions
How do I calculate in-hand salary from CTC?
What percentage of CTC is in-hand salary?
Is PF deducted from CTC or from salary?
Which tax regime gives higher in-hand salary?
Is basic salary 40% or 50% of CTC?
Does the salary calculator include variable pay and bonus?
Payroll that gets the breakup right every month
Engage HRMS works out salary structures, PF, ESI, professional tax and TDS for every employee, then files the returns that follow. Across states, without spreadsheets.
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