How is in-hand salary calculated from CTC?

In-hand salary = CTC - Employer PF (12% of basic) - Gratuity (4.81% of basic) - Income Tax - Professional Tax - Employee PF (12% of basic).

What is the difference between CTC and in-hand salary?

CTC is the total cost to the company including employer contributions. In-hand salary is what you actually receive after all deductions. The difference is typically 25-40% of CTC.

How much in-hand salary for 10 LPA?

For 10 LPA CTC, in-hand salary is approximately ₹68,000–₹72,000 per month under the new tax regime in FY 2026-27, depending on salary structure and city.

10 LPA In-Hand Salary Breakdown (2026-27)

10 LPA In-Hand Salary Breakdown in India (FY 2026-27)

Receiving an offer letter of 10 Lakhs Per Annum (LPA) is a significant milestone for many professionals in India. However, if you simply divide ₹10,00,000 by 12, you will expect around ₹83,333 per month. The reality is that your actual 10 LPA in-hand salary will be lower due to Provident Fund (PF), Professional Tax, and Income Tax deductions.

In this guide, we break down exactly how much take-home pay you will get from a 10 LPA CTC under the New Tax Regime and the Old Tax Regime for FY 2026-27.

1. Typical Salary Structure for 10 LPA

While every company structures its CTC differently, a standard structure for 10 LPA looks like this:

Basic Salary (50% of CTC): ₹5,00,000 per year (₹41,667 / month)
House Rent Allowance (HRA) (50% of Basic): ₹2,50,000 per year (₹20,833 / month)
Employer PF (12% of Basic): ₹60,000 per year (₹5,000 / month)
Gratuity (4.81% of Basic): ₹24,050 per year
Special Allowance (Balancing Figure): ₹1,65,950 per year (₹13,829 / month)

Gross Salary = CTC - Employer PF - Gratuity = ₹9,15,950 annually (₹76,329 per month).

2. 10 LPA In-Hand Salary under the New Tax Regime

The New Tax Regime is highly beneficial for a 10 LPA CTC because of the ₹75,000 Standard Deduction. Here is the calculation:

Gross Salary: ₹9,15,950
Less: Standard Deduction: -₹75,000
Taxable Income: ₹8,40,950

Tax Calculation (New Slabs):

₹0 - ₹3L: Nil
₹3L - ₹7L (5%): ₹20,000
₹7L - ₹8.4L (10%): ₹14,095
Total Tax + 4% Cess: ₹35,459 annually (₹2,955 / month)

Monthly Deductions: Employee PF (₹5,000) + Prof Tax (₹200) + TDS (₹2,955) = ₹8,155.

Monthly 10 LPA In-Hand Salary: ₹68,174

3. 10 LPA In-Hand Salary under the Old Tax Regime

If you have significant investments, you might stick to the old regime. Assuming you claim ₹1.5 Lakhs under 80C and ₹1 Lakh HRA exemption:

Gross Salary: ₹9,15,950
Less: Standard Deduction: -₹50,000
Less: 80C Investments: -₹1,50,000
Less: HRA Exemption: -₹1,00,000
Taxable Income: ₹6,15,950

Tax Calculation (Old Slabs):

₹0 - ₹2.5L: Nil
₹2.5L - ₹5L (5%): ₹12,500
₹5L - ₹6.15L (20%): ₹23,190
Total Tax + 4% Cess: ₹37,118 annually (₹3,093 / month)

Monthly 10 LPA In-Hand Salary: ₹68,036 (Note: This is slightly lower than the new regime, PLUS you had to lock away ₹1.5 Lakhs in investments).

Conclusion

For a 10 LPA CTC, you can expect an in-hand salary of approximately ₹68,000 to ₹69,000 per month. For most employees without a home loan, the New Tax Regime yields a slightly higher take-home pay and more cash liquidity.