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

CTC (Cost to Company) is the total annual amount a company spends on you, including employer PF contribution and gratuity. In-hand (take-home) salary is what gets credited to your bank account after deducting employee PF, professional tax, and income tax.

How is in-hand salary calculated from CTC?

In-hand salary = Gross Salary − Employee PF (12% of Basic) − Professional Tax − Income Tax (TDS). Gross Salary = CTC − Employer PF (12% of Basic) − Gratuity (4.81% of Basic).

Is employer PF part of CTC?

Yes. Employer's PF contribution (12% of Basic salary) is included in the CTC figure but is deposited directly into your EPF account — it is not paid as salary. Similarly, gratuity (4.81% of Basic) is provisioned in CTC but paid out only after 5+ years of service.

Which tax regime gives a higher take-home for salaried employees?

For FY 2025-26, the New Regime offers no tax up to ₹12.75 lakh (after ₹75,000 standard deduction) and is better for most salaried employees with limited deductions. The Old Regime is better only if you have significant HRA exemption, home loan interest, and max 80C investments.

What is HRA exemption and how is it calculated?

HRA exemption is available only under the Old Regime if you pay rent. Exempt HRA = minimum of: (1) Actual HRA received, (2) 50% of Basic salary for metro cities or 40% for non-metro, (3) Actual rent paid minus 10% of Basic salary.

Salaried EmployeeFY 2025-26 Updated

CTC to In-Hand Salary Calculator

Enter your CTC and get a complete salary breakup — Basic, HRA, PF, gratuity, and exact take-home under New & Old regime.

Annual CTC

₹

₹1L₹12,00,000₹1 Cr

= Twelve Lakh Rupees

Salary Structure

Basic Salary40% = ₹40,000/mo

30% (min)60% (max)

HRA (% of Basic)50% = ₹20,000/mo

40%60%

City Category

Metro: Delhi, Mumbai, Chennai, Kolkata — HRA exemption at 50% of Basic

Tax Regime

Enter these to calculate your HRA exemption and 80C deductions:

Monthly Rent Paid

₹

Additional 80C (beyond PF)

₹

Monthly In-Hand

₹88,276

New Regime · ₹10,59,312 / year

New regime saves ₹1,20,655 in annual tax

Annual CTC Breakup

Basic Salary40% of CTC · ₹40,000/mo₹4,80,000

HRA50% of Basic · ₹20,000/mo₹2,40,000

Special AllowanceRemainder · ₹33,276/mo₹3,99,312

Employer PF12% of Basic — to EPF₹57,600

Gratuity4.81% of Basic — on exit₹23,088

Gross SalaryWhat appears in your pay slip₹11,19,312

Annual Deductions

Employee PF12% of Basic · ₹4,800/mo–₹57,600

Professional Tax₹200/mo (standard)–₹2,400

Income Tax (TDS)Effective rate: 0.0%–₹0

Rebate u/s 87ASubtracted from your tax₹44,431

Monthly In-Hand

₹10,59,312 / year

₹88,276

Estimate only. Actual salary depends on your employer's structure and state-specific PT rates. Consult HR or a CA for exact figures.

How CTC Becomes Your In-Hand Salary

Your CTC and take-home can differ by 20–35%. Here is where that money goes.

Strip out employer costs

Employer PF (12% of Basic) and gratuity (4.81%) are in your CTC but never appear in your salary. Remove them to get Gross Salary — what is actually in your pay slip.

Deduct statutory contributions

From Gross Salary, your employer deducts Employee PF (12% of Basic), Professional Tax (₹200/month), and TDS (income tax). The remainder is your net take-home.

Minimise income tax

Choose between New Regime (lower slabs, simple) and Old Regime (HRA + 80C deductions). For most employees with CTC under ₹15L, New Regime gives a higher take-home in FY 2025-26.

Renting? Use Old Regime to save on HRA

If your monthly rent exceeds 10% of your Basic salary, a portion of your HRA is tax-exempt under the Old Regime. For high earners in metros paying ₹25,000+ rent, this exemption can save ₹50,000–₹1,50,000 in tax annually — enough to make Old Regime the winner. Switch to Old Regime above and enter your rent to check.