CTC to In-Hand Salary Calculator
Calculate your monthly take-home salary from your CTC. Built for Indian freshers and students evaluating job offers for FY 2025-26.
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Frequently Asked Questions
What is CTC and how is it different from in-hand salary?
CTC (Cost to Company) is the total amount a company spends on an employee annually, including base salary, allowances, PF contributions, gratuity, insurance, and bonuses. In-hand salary (or net salary) is what you actually receive in your bank account after deductions like PF, professional tax, and income tax.
Which tax regime should freshers choose - Old or New?
For most freshers with CTC below ₹15 LPA and no significant investments (home loan, HRA claims), the New Tax Regime is better due to higher rebate limit (₹12 lakh vs ₹5 lakh) and higher standard deduction (₹75,000). The Old Regime benefits those with substantial Section 80C investments and HRA claims.
How is PF (Provident Fund) calculated from CTC?
Both employer and employee contribute 12% of basic salary to PF. Many companies cap this at ₹15,000 basic (₹1,800/month each). The employer's PF is part of your CTC but not your in-hand salary. Employee PF is deducted from your gross salary but grows with interest (~8.25% p.a.) as retirement savings.
What happens if I withdraw PF before 5 years of service?
If you withdraw your PF before completing 5 years of continuous service, TDS (Tax Deducted at Source) of 10% is applied if you have a PAN card, or 20% without PAN. The withdrawn amount also becomes taxable income for that financial year. If you switch jobs, transferring PF instead of withdrawing avoids this penalty.
What is Professional Tax and which states charge it?
Professional Tax is a state-level tax on salaried individuals, capped at ₹2,500/year by the Constitution. States like Maharashtra, Karnataka, Tamil Nadu, Telangana, and West Bengal charge it (₹200/month typically). States like Delhi, Rajasthan, UP, Haryana, and Punjab do not levy professional tax.
How much of my CTC will I actually get as in-hand salary?
Typically, you receive 65-75% of your CTC as in-hand salary for packages below ₹10 LPA under the new tax regime. For higher CTCs, this percentage decreases due to progressive taxation. The exact amount depends on your basic salary percentage, PF structure, state, and applicable tax deductions.
How to Calculate In-Hand Salary from CTC
CTC (Cost to Company) is the total annual expense your employer incurs on you. Your in-hand salary is what you actually receive after deductions. The formula is:
Monthly In-Hand = (CTC − Employer PF − Gratuity − Bonus − Employee PF − Income Tax − Professional Tax) ÷ 12 For FY 2025-26, the new tax regime (default) provides zero tax up to ₹12,00,000 taxable income thanks to the Section 87A rebate. The standard deduction is ₹75,000.
Income Tax Slabs — New Regime (FY 2025-26)
| Taxable Income | Rate |
|---|---|
| Up to ₹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% |
+ 4% Health & Education Cess on total tax. Rebate u/s 87A: zero tax if taxable income ≤ ₹12,00,000.
CTC to In-Hand: Quick Reference
| CTC (Annual) | Monthly In-Hand (Approx) | Annual Tax |
|---|---|---|
| ₹4 LPA | ₹28,000–30,000 | ₹0 |
| ₹6 LPA | ₹41,000–44,000 | ₹0 |
| ₹8 LPA | ₹53,000–56,000 | ₹0 |
| ₹10 LPA | ₹64,000–68,000 | ₹0* |
| ₹12 LPA | ₹74,000–78,000 | ₹0* |
| ₹15 LPA | ₹88,000–95,000 | ~₹78,000 |
| ₹20 LPA | ₹1,12,000–1,20,000 | ~₹2,08,000 |
| ₹25 LPA | ₹1,30,000–1,45,000 | ~₹3,64,000 |
*Section 87A rebate gives zero tax up to ₹12L taxable income (new regime). Assumes 40% basic, PF capped at ₹15,000.
Frequently Asked Questions
What is CTC and how is it different from in-hand salary?
CTC (Cost to Company) is the total annual amount your employer spends on you — including basic salary, HRA, PF contributions, gratuity, insurance, and bonuses. In-hand salary is what you actually receive in your bank account after deducting employee PF, income tax, and professional tax. In-hand is typically 65-85% of CTC.
How much in-hand salary will I get for 10 LPA CTC?
For ₹10 LPA CTC with 40% basic under the new tax regime (FY 2025-26), your approximate monthly in-hand salary is ₹64,000–68,000. With the Section 87A rebate, your income tax is zero since taxable income stays within ₹12 lakh. The exact amount depends on your state (professional tax) and PF structure.
Which is better — old tax regime or new tax regime?
For most freshers earning under ₹15 LPA without significant investments (home loan, 80C, NPS), the new regime is better due to higher exemption (₹4L vs ₹2.5L), wider slabs, and full rebate up to ₹12L taxable income. The old regime benefits those with large deductions under 80C, 80D, and HRA exemption.
What is the standard deduction for salaried employees?
For FY 2025-26, the standard deduction is ₹75,000 under the new tax regime and ₹50,000 under the old tax regime. This is a flat deduction from gross salary before calculating taxable income — no proof or investment required.
What is professional tax and which states charge it?
Professional tax is a state-level tax on employment income, capped at ₹2,500/year by the Constitution. States like Maharashtra, Karnataka, Tamil Nadu, Telangana, and West Bengal charge it. Delhi, UP, Rajasthan, Punjab, Haryana, and Uttarakhand do NOT levy professional tax.
Should I choose PF on full basic or capped at ₹15,000?
PF capped at ₹15,000 means both employer and employee contribute 12% of ₹15,000 (₹1,800/month) regardless of actual basic. This gives higher take-home pay. Full basic PF means 12% of your entire basic salary goes to PF — lower take-home but better retirement corpus. Most MNCs offer the choice; smaller companies often cap at ₹15,000.
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