Salary Planning

CTC to In-Hand Salary Calculator

Convert your annual CTC to monthly in-hand salary. See the full breakdown — Basic, HRA, EPF, Professional Tax, and income tax deductions for FY 2025-26.

Salary Structure

Typically 40-50% of CTC

Affects HRA calculation

Additional Details

For HRA exemption (old regime)

Included in CTC but paid separately

Monthly In-Hand Salary

Salary Breakdown (Monthly)

Basic Salary
HRA
Special Allowance
Gross Salary

Deductions

EPF (Employee)
Professional Tax
Income Tax (TDS)
Total Deductions

CTC Allocation

Annual Summary

Component Monthly Annual

Employer's Cost (Beyond Your CTC)

Employer EPF
Employer ESI (if applicable)
Gratuity Provision

Calculations are approximate and based on standard salary structures. Actual in-hand salary may vary based on company policies, variable pay timing, and specific benefits.

What is a CTC to In-Hand Salary Calculator?

A CTC to In-Hand Salary Calculator converts your annual Cost to Company (CTC) into the actual monthly amount you receive in your bank account — your take-home pay or net salary. CTC includes your basic salary, allowances (HRA, special allowance), employer contributions (EPF, gratuity), and variable pay (bonuses). But not all of this reaches you every month.

Your employer deducts Employee Provident Fund (EPF), professional tax, and income tax (TDS) before crediting your salary. This calculator breaks down every component so you can see exactly where your CTC goes — how much is your gross salary, how much is deducted, and what remains as your monthly in-hand pay.

Whether you're evaluating a new job offer, comparing two salary packages, or simply want to understand your payslip better — this tool gives you a transparent, India-specific salary breakdown in seconds.

How to Use This CTC to In-Hand Calculator

  1. 1

    Enter your annual CTC

    This is the total cost your employer mentions in the offer letter. It includes everything — basic, HRA, EPF, gratuity, bonuses, and all allowances.

  2. 2

    Set your basic salary percentage

    Most companies set basic at 40-50% of CTC. A higher basic means higher EPF and gratuity but also higher tax-free HRA. Check your offer letter for the exact split.

  3. 3

    Select city and tax regime

    Metro vs non-metro affects your HRA exemption. Choose your tax regime (new regime is default for FY 2025-26) to calculate accurate TDS deduction.

  4. 4

    View your complete salary breakdown

    See the monthly and annual split of every component — basic, HRA, special allowance, EPF, professional tax, income tax, and your final in-hand salary.

CTC vs In-Hand Salary — What's the Difference?

CTC (Cost to Company)

The total amount your employer spends on you annually. Includes basic salary, HRA, allowances, employer EPF/ESI contributions, gratuity provision, bonuses, and benefits like insurance. This is the number in your offer letter.

In-Hand Salary (Take-Home)

The actual amount credited to your bank account each month after all deductions — EPF (employee share), professional tax, and income tax (TDS). Typically 65-75% of your CTC depending on your salary structure and tax regime.

Gross Salary vs Net Salary

Gross salary = CTC minus employer contributions (employer EPF, gratuity). Net salary = Gross salary minus employee deductions (employee EPF, professional tax, TDS). Net salary is your in-hand pay.

Why CTC Does Not Equal In-Hand

For a ₹12 LPA CTC, your in-hand is typically ₹75,000-85,000/month (not ₹1,00,000). The gap is employer EPF (₹1,800/mo), employee EPF (₹1,800/mo), professional tax (₹200/mo), and income tax deducted at source.

Salary Components Explained

  • Basic Salary — The fixed core component, typically 40-50% of CTC. It determines HRA, EPF, and gratuity amounts. A higher basic means more tax-saving via HRA but also higher EPF deduction.
  • HRA (House Rent Allowance) — Usually 50% of basic (metro) or 40% (non-metro). If you pay rent, you can claim HRA exemption under the old tax regime to reduce taxable income.
  • Special Allowance — The balancing component that makes up the difference between gross salary and (basic + HRA). Fully taxable with no special exemptions.
  • EPF (Employee Provident Fund) — 12% of basic is deducted from your salary, and employer matches another 12% per the EPF Act, 1952. Qualifies for 80C tax deduction (old regime) and earns 8.25% interest.
  • Professional Tax — State-level tax on salaried individuals, typically ₹200/month (max ₹2,500/year). Varies by state — Karnataka, Maharashtra, West Bengal charge it; some states don't.
  • TDS (Tax Deducted at Source) — Your employer deducts estimated income tax monthly based on your declared investments and chosen Income Tax Act regime. This is adjusted during ITR filing.

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FAQs

Frequently asked questions

What is the difference between CTC and in-hand salary?
CTC (Cost to Company) is the total amount your employer spends on you, including basic salary, HRA, allowances, employer EPF, gratuity, and bonuses. In-hand salary is what you actually receive in your bank account after deducting employee EPF, professional tax, and income tax (TDS). Typically, in-hand salary is 65-75% of CTC.

How is in-hand salary calculated from CTC?
In-hand salary = CTC - Employer EPF - Gratuity (gives Gross Salary) - Employee EPF - Professional Tax - Income Tax (TDS). The exact amount depends on your basic salary percentage, tax regime choice, HRA exemption, and other deductions.

What percentage of CTC is basic salary?
Basic salary is typically 40-50% of CTC in most Indian companies. Some companies set it at 50% to maximize EPF and gratuity benefits, while others keep it at 40% to reduce mandatory deductions. Check your offer letter for the exact split.

Which tax regime should I choose — old or new?
If your total deductions (80C, 80D, HRA, home loan interest) exceed approximately 3.75 lakh, the old regime may save more tax. If you have fewer deductions, the new regime with its lower slab rates and 75,000 standard deduction is likely better. Use our Tax Savings Optimizer for a detailed comparison.