ctctoinhand.in

CTC to In-Hand Salary Calculator India

Updated for FY 2025–26
Includes New & Old Tax Regime
Calculate your take-home salary from CTC instantly under New and Old Tax Regime with PF, gratuity, and tax deductions.

Enter your CTC to see your estimated monthly take-home salary

Bonus / Variable Pay (Optional)

Bonus/variable pay is performance-linked and usually paid separately, not as part of monthly salary.

Not sure which to choose? Compare Old vs New Tax Regimes.

How This CTC to In-Hand Salary Calculator Works?

This CTC to in-hand salary calculator helps employees in India estimate their monthly take-home salary based on annual Cost to Company (CTC).

1. Enter Your CTC

Input your annual Cost to Company as mentioned in your offer letter.

2. Choose Tax Regime

Select New or Old tax regime to compare deductions and slabs.

3. View Monthly In-Hand

Get a detailed breakdown including PF, gratuity, tax and final monthly take-home salary.

This calculator includes:

  • New & Old Tax Regime comparison
  • Provident Fund (PF) deduction
  • Professional tax
  • Bonus / variable pay
  • Monthly & annual in-hand breakdown

All calculations are indicative and for informational purposes only. Actual take-home salary may vary based on company structure and tax declarations.

Detailed Breakdown of Salary Components

A salary structure in India consists of multiple components. While your offer letter shows a single CTC number, that amount is divided into fixed pay, benefits, employer contributions and statutory deductions. Understanding each component helps you estimate your actual in-hand salary accurately.

1. Basic Salary

Basic salary usually forms 40–50% of your CTC. It is the foundation of your salary structure because several other components such as PF, gratuity and HRA are calculated based on basic salary. A higher basic increases long-term benefits but may also increase deductions.

2. House Rent Allowance (HRA)

HRA is provided to employees who live in rented accommodation. Under the Old Tax Regime, HRA can provide tax exemption if rent is paid and declared properly. In the New Tax Regime, most exemptions including HRA are not applicable.

HRA Calculator

Instantly calculate your HRA exemption under the Old Tax Regime.

3. Provident Fund (PF)

Employees contribute 12% of their basic salary towards Provident Fund. Employers also contribute 12%. While the employer contribution is included in CTC, only the employee contribution is deducted from your monthly salary. PF helps build long-term retirement savings.

4. Gratuity

Gratuity is typically calculated as 4.81% of your basic salary annually. It is included in CTC but paid only after completing 5 years of continuous service with the same employer. It does not form part of monthly in-hand salary.

You can calculate your gratuity amount using our Gratuity Calculator.

5. Flexi Benefits Plan (FBP)

Many companies offer a Flexi Benefits Plan (FBP), allowing employees to allocate part of their salary toward tax-efficient components such as meal coupons, fuel reimbursement, internet bills, telephone bills or Leave Travel Allowance (LTA). Flexi benefits may reduce taxable income depending on the tax regime chosen.

Under the Old Tax Regime, certain flexi components can provide tax advantages if properly claimed. Under the New Tax Regime, most exemptions are not available, so the tax benefit impact may differ.

Learn how flexi benefits impact your taxable income in our detailed guide on Flexi Benefits in Salary Structure.

6. Professional Tax

Professional tax is a state-level deduction applicable in certain states in India. It is usually a small monthly amount and directly reduces your in-hand salary.

7. Bonus / Variable Pay

Some companies include performance bonus or variable pay in CTC. This amount may be paid quarterly or annually and is often performance-based. Since it is not guaranteed monthly income, your regular in-hand salary may be lower than total CTC suggests.

8. Income Tax

Income tax is calculated based on your taxable income after applicable deductions. The tax amount depends on whether you choose the New or Old Tax Regime. Income tax is usually deducted monthly as TDS (Tax Deducted at Source) by your employer.

Income Tax Calculator

Calculate your income tax under the Old and New Tax Regime instantly. Compare tax liability and choose the regime that saves you more.

What Is CTC vs In-Hand Salary?

CTC (Cost to Company) is the total annual cost your employer spends on you. It includes basic salary, HRA, employer PF contribution, gratuity and other benefits. However, your in-hand salary is the amount credited to your bank account after deductions like employee PF, professional tax and income tax.

To understand the full breakdown, read our detailed guides:

New vs Old Tax Regime – Which Is Better?

The New Tax Regime offers lower slab rates but fewer deductions, while the Old Tax Regime allows deductions under Section 80C, 80D, HRA exemption and home loan interest. The better option depends on your salary structure and investments.

Learn detailed income tax calculation →

In-Hand Salary Examples (India – 2026)

Who Is This Calculator For?

This CTC to in-hand salary calculator is useful for:

  • Software engineers evaluating job offers
  • IT professionals switching companies
  • Freshers comparing salary packages
  • Private sector employees
  • Government employees
  • Anyone planning salary negotiations

Before accepting any offer letter, it is important to understand your real take-home salary instead of relying only on the CTC mentioned.

Why Trust ctctoinhand.in?

Our salary calculator is built specifically for Indian salary structures and includes statutory deductions such as Provident Fund, gratuity, professional tax and income tax.

  • Updated for FY 2025–26 tax rules
  • Includes New and Old Tax Regime comparison
  • Transparent salary breakdown
  • Regularly maintained and improved

The goal is to help salaried employees make informed financial decisions with clarity and transparency.

FAQs on CTC to In-Hand Salary

Is CTC the same as in-hand salary?
No. CTC (Cost to Company) includes components like employer PF, gratuity, bonuses, and benefits that are not paid monthly. In-hand salary is the amount you actually receive in your bank account after all deductions.
How is in-hand salary calculated from CTC in India?
In-hand salary is calculated by subtracting deductions such as employee PF, professional tax, and income tax from the total CTC. This calculator estimates take-home salary under both the new and old tax regimes in India.
Does employer PF reduce take-home salary?
Yes, indirectly. Employer PF is part of CTC but is not paid as cash salary. Because it is included in CTC, it lowers the monthly in-hand salary.
Which tax regime gives higher in-hand salary?
For most salaried employees without major deductions, the new tax regime usually results in higher monthly in-hand salary. However, employees claiming HRA, 80C, or other exemptions may benefit more from the old tax regime.
Is gratuity included in CTC?
Yes. Gratuity is included in CTC but is payable only if you complete at least five years with the employer. It is not part of monthly take-home salary.