CTC to In-Hand Salary Calculator (FY 2025-26)
Enter your annual CTC to see your monthly take-home salary after PF, professional tax, and income tax deductions. Compare new vs old tax regime instantly.
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Annual CTC Breakdown
Not financial or tax advice. Consult a CA for your exact tax liability. TopOpenTools is not a SEBI-registered investment adviser.
Understanding the CTC to In-Hand Salary Calculator
The CTC to In-Hand Salary Calculator (India) estimates the monthly take-home pay behind an annual CTC (Cost to Company) offer for FY 2025-26. CTC bundles your fixed salary with employer contributions and variable pay, so the money that reaches your bank account is always lower. Enter your CTC and, where known, the basic-pay share, and the tool splits the package into components, removes employer-only costs, subtracts employee EPF, professional tax, and estimated income tax (TDS), and compares in-hand pay under the new and old tax regimes. It runs entirely in your browser, so your salary details stay private. Results are educational estimates, not payroll or tax advice.
How it works
CTC = fixed pay + employer contributions + variable pay. The calculator first sets aside employer-only costs that never reach you: the employer EPF contribution (about 12% of basic) and the gratuity provision (roughly 4.81% of basic). What remains is your gross salary, typically built from basic (about 40-50% of CTC), HRA, special allowance, and other allowances. From gross it subtracts the employee EPF (12% of basic), state professional tax (a small monthly levy, capped at 2,500 per year), and income tax deducted at source. Income tax is estimated under both the new regime (lower slabs, standard deduction, few exemptions) and the old regime (higher slabs but HRA, 80C, and other deductions), so you can compare take-home side by side. Dividing annual net pay by 12 gives estimated monthly in-hand salary.
Worked Example
Suppose CTC is ₹12,00,000/year with basic at 40% (₹4,80,000). Employer EPF ≈ 12% × 4,80,000 = ₹57,600 and gratuity provision ≈ 4.81% × 4,80,000 = ₹23,088. Gross ≈ 12,00,000 − 57,600 − 23,088 = ₹11,19,312 (about ₹93,276/month). Deduct employee EPF ₹57,600 and professional tax ₹2,400. Under the new regime, after the standard deduction and slabs, estimated tax is modest, so annual in-hand lands near ₹10,30,000, or roughly ₹85,800/month. The old regime can beat this only if your HRA and 80C deductions are large.
Tips & Common Mistakes
- The basic-pay share drives everything: a higher basic raises both EPF contributions and gratuity, cutting cash in hand while boosting retirement savings.
- Employer EPF and the gratuity provision are part of CTC but never hit your bank account, so always separate them from gross salary.
- Variable pay, joining bonuses, and ESOPs inflate the CTC headline but are not guaranteed monthly income; exclude them when budgeting.
- The new regime usually wins for those with few deductions; the old regime can win if you claim large HRA, home-loan interest, and 80C investments.
- Professional tax varies by state and is capped at ₹2,500 per year; some states (like Delhi) do not levy it at all.
- This is an estimate for FY 2025-26; confirm current slabs, the standard deduction, and EPF rules at incometax.gov.in and epfindia.gov.in before relying on the figures.
Sources & Methodology
- →Income Tax Department, India — tax slabs and salary income (https://www.incometax.gov.in)
- →EPFO — Employees' Provident Fund contribution rules (https://www.epfindia.gov.in)
- →Payment of Gratuity Act, 1972 (Government of India)
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Built and maintained by TopOpenTools · Last updated June 2026. These tools provide general estimates for educational purposes only and are not financial, tax, insurance, investment, or medical advice. Verify important decisions with a qualified professional.
Frequently Asked Questions
What is CTC and how does it differ from in-hand salary?
CTC (Cost to Company) is the total annual amount a company spends on an employee, including gross salary, employer PF, gratuity, and other benefits. In-hand salary (or take-home pay) is what you actually receive after all deductions — employee PF, professional tax, and income tax (TDS).
Which tax regime is better for me — new or old?
It depends on your deductions. If you have significant Section 80C investments (PF, ELSS, LIC), HRA exemption (if you pay rent), and health insurance (80D), the old regime may save more tax. If you have minimal deductions, the new regime (with its higher basic exemption and lower slab rates up to ₹12L) is often better. This calculator lets you compare both.
What salary structure assumptions does this calculator use?
We assume: Basic = 40% of CTC, HRA = 50% of Basic, Employer PF = 12% of Basic (capped at ₹1,800/month), Gratuity = 4.81% of Basic, Professional Tax = ₹200/month. Actual structure varies by employer — your offer letter or salary slip will have exact components.
What is the standard deduction for FY 2025-26?
Under the new tax regime: ₹75,000. Under the old tax regime: ₹50,000. This is automatically deducted from your gross salary before calculating taxable income.
What is the income tax rebate u/s 87A in FY 2025-26?
Under the new tax regime, if your taxable income (after standard deduction) is ₹12 lakh or less, you get a full tax rebate — meaning zero income tax. Under the old tax regime, the rebate applies if taxable income is ₹5 lakh or less.
Is this tax advice?
No. This calculator provides estimates based on standard assumptions and is for informational purposes only. For your exact tax liability, consult a Chartered Accountant. TopOpenTools is not a SEBI-registered investment adviser.