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.

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

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

A 12 Lakhs Per Annum (LPA) CTC is an important salary bracket for mid-level professionals. At 1 Lakh per month mathematically, the psychological expectation is high. However, taxes start to take a larger bite at this bracket. Let's break down the exact 12 LPA in-hand salary.

1. Typical Salary Structure for 12 LPA

Basic Salary (50% of CTC): ₹6,00,000 per year (₹50,000 / month)
House Rent Allowance (HRA) (50% of Basic): ₹3,00,000 per year (₹25,000 / month)
Employer PF (12% of Basic): ₹72,000 per year (₹6,000 / month)
Gratuity (4.81% of Basic): ₹28,860 per year
Special Allowance (Balancing Figure): ₹1,99,140 per year (₹16,595 / month)

Gross Salary = ₹10,99,140 annually (₹91,595 per month).

2. 12 LPA In-Hand Salary under the New Tax Regime

Gross Salary: ₹10,99,140
Less: Standard Deduction: -₹75,000
Taxable Income: ₹10,24,140

Tax Calculation (New Slabs):

Up to ₹3L: Nil
₹3L - ₹7L (5%): ₹20,000
₹7L - ₹10L (10%): ₹30,000
₹10L - ₹10.24L (15%): ₹3,621
Total Tax + 4% Cess: ₹55,766 annually (₹4,647 / month)

Monthly Deductions: Employee PF (₹6,000) + Prof Tax (₹200) + TDS (₹4,647) = ₹10,847.

Monthly 12 LPA In-Hand Salary: ₹80,748

3. 12 LPA In-Hand Salary under the Old Tax Regime

Assuming ₹1.5 Lakhs (80C), ₹25k (80D), and ₹1.5 Lakhs HRA exemption:

Taxable Income: ₹7,24,140

Tax Calculation (Old Slabs):

Up to ₹2.5L: Nil
₹2.5L - ₹5L (5%): ₹12,500
₹5L - ₹7.24L (20%): ₹44,828
Total Tax + 4% Cess: ₹59,621 annually (₹4,968 / month)

Monthly 12 LPA In-Hand Salary: ₹80,427

Conclusion

For a 12 LPA CTC, you can expect an in-hand salary of approximately ₹80,000 to ₹81,000 per month. Even with significant investments, the New Tax Regime often comes out slightly ahead or equal, giving you more freedom with your cash.