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.

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CTC to In-Hand Salary Calculator India 2026 – Complete Guide

Every Indian employee faces the same confusion: your offer letter says ₹12 LPA but your bank account tells a different story. This salary calculator India tool bridges that gap, giving you the exact in-hand salary from CTC, updated for FY 2026-27 tax slabs.

What is CTC vs In-Hand Salary?

CTC (Cost to Company) is the total annual expense a company incurs for an employee. It includes your basic salary, allowances (HRA, LTA, special allowance), employer PF contribution, gratuity, and any other perquisites. In-hand salary, also called take-home salary, is what you actually receive in your bank account every month after all deductions.

The gap between CTC and in-hand salary is typically 25–40% of your CTC, depending on your tax bracket, city, and salary structure.

How is In-Hand Salary Calculated?

The formula for calculating in-hand salary from CTC:

Component	Calculation	Example (12 LPA)
Gross Salary	CTC – Employer PF – Gratuity	₹10,15,200/yr
Basic Salary	40–50% of Gross	₹40,000/month
HRA	40–50% of Basic (metro/non-metro)	₹20,000/month
Employee PF	12% of Basic (max ₹1,800/month)	₹1,800/month
Professional Tax	₹200/month (Maharashtra, Karnataka)	₹200/month
Income Tax (TDS)	As per tax regime slabs	Varies
In-Hand Salary	Gross – All Deductions	~₹72,000–78,000/month

New Tax Regime vs Old Tax Regime 2026-27

The new tax regime is the default from FY 2024-25 onwards. It offers lower slab rates but removes most deductions. The old regime benefits those with large investments and deductions.

Income Slab	New Regime Rate	Old Regime Rate
Up to ₹3,00,000	Nil	Nil
₹3L – ₹7L	5%	5%
₹7L – ₹10L	10%	20%
₹10L – ₹12L	15%	30%
₹12L – ₹15L	20%	30%
Above ₹15L	30%	30%

Standard deduction of ₹75,000 is available under the new regime for salaried employees from FY 2024-25.

Common In-Hand Salary Examples (FY 2026-27)

CTC (LPA)	Monthly In-Hand (New Regime)	Monthly In-Hand (Old Regime)
5 LPA	₹37,500 – ₹40,000	₹36,000 – ₹38,500
8 LPA	₹58,000 – ₹62,000	₹55,000 – ₹60,000
10 LPA	₹70,000 – ₹75,000	₹67,000 – ₹72,000
12 LPA	₹82,000 – ₹88,000	₹78,000 – ₹84,000
15 LPA	₹1,00,000 – ₹1,07,000	₹95,000 – ₹1,02,000
20 LPA	₹1,27,000 – ₹1,35,000	₹1,20,000 – ₹1,28,000

PF (Provident Fund) Deduction Explained

Employee Provident Fund (EPF) is a mandatory retirement savings scheme. Both employee and employer contribute 12% of basic salary. The employee contribution is deducted from your salary, while the employer contribution is part of your CTC. The maximum EPF deduction is capped at ₹1,800/month (12% of ₹15,000 wage ceiling under EPF Act).

Professional Tax Deduction by State

Professional tax is a state-level tax deducted by the employer. Here are the rates for major states:

State	Monthly Professional Tax
Maharashtra	₹200/month (₹300 in Feb)
Karnataka	₹200/month
West Bengal	₹200/month
Tamil Nadu	₹208/month (approx)
Andhra Pradesh	₹150/month
Delhi, UP, Rajasthan	Nil (no professional tax)

Frequently Asked Questions

How much in-hand salary for 10 LPA in India 2026? ▼

For a 10 LPA CTC, your monthly in-hand salary is approximately ₹70,000–₹75,000 under the new tax regime in FY 2026-27. This assumes standard salary structure with basic at 40% of CTC, metro city, no home loan deductions. Under the old regime with 80C investments, it can be ₹67,000–₹72,000.

What is the difference between gross salary and in-hand salary? ▼

Gross salary is CTC minus employer PF and gratuity contributions — it's the amount before tax and employee deductions. In-hand salary is gross salary minus employee PF, professional tax, and income tax (TDS). Gross salary is higher than in-hand salary.

Is new tax regime better than old regime in 2026? ▼

For most salaried employees with income below ₹15 LPA and limited investments, the new tax regime is better in FY 2026-27 due to lower slab rates and the ₹75,000 standard deduction. The old regime is better only if your total deductions (80C, HRA, home loan interest) exceed ₹3.5–4 lakhs annually.

How is HRA calculated and what is the exemption? ▼

HRA exemption is the minimum of: (1) Actual HRA received, (2) Rent paid minus 10% of basic salary, (3) 50% of basic salary for metro cities or 40% for non-metro. HRA exemption is only available under the old tax regime.

What percentage of CTC is in-hand salary? ▼

Typically, in-hand salary is 60–75% of CTC. For lower salaries (below 5 LPA), it can be 75–80% due to lower taxes. For higher salaries (20+ LPA), it may be only 55–65% due to higher income tax slabs.

Does this salary calculator work for all states in India? ▼

Yes. The calculator handles professional tax variations across states. Select your city (metro/non-metro) and the calculations apply standard professional tax. For states like Delhi and UP with no professional tax, the deduction is set to zero automatically.