New regime: ₹75,000 standard deduction. No 80C/80D deductions. Default from FY 2025-26.
In-Hand Salary Calculator India 2026 — CTC to Take-Home
Find out exactly how much money lands in your bank account every month. Enter your annual CTC, adjust basic percentage, professional tax, and choose your tax regime — the calculator instantly shows your monthly take-home after PF, income tax TDS, and professional tax deductions.
What is CTC vs Take-Home Salary?
CTC (Cost to Company) is the total annual expenditure your employer makes on your behalf. It includes your gross salary, employer's PF contribution (12% of Basic, capped at ₹1,800/month), gratuity provision (4.81% of Basic), and any employer NPS contribution. Take-home salary — also called in-hand or net salary — is what remains after deducting employee PF, professional tax, and income tax TDS from your gross monthly pay.
For a ₹12 LPA CTC with 40% Basic and the new regime, the typical gap between CTC and in-hand salary is ₹15,000–₹25,000 per month, depending on your tax liability and employer structure.
Components Deducted from Your CTC
- Employee PF (EPF): 12% of your Basic salary, capped at ₹1,800/month (i.e., once Basic exceeds ₹15,000/month, the deduction stays flat). Goes into your EPF account.
- Employer PF: Equal to employee PF. Part of your CTC but not received as salary — it reduces your take-home relative to gross.
- Gratuity Provision: 4.81% of Basic per month is set aside by the employer. It pays out as a lump sum after 5 years of service.
- Professional Tax: A state-level tax on employment income, typically ₹200/month (₹2,400/year). Varies by state — Maharashtra charges ₹2,500/year, some states charge nothing.
- Income Tax (TDS): Your employer deducts TDS monthly based on your estimated annual tax liability under the chosen regime. For new regime in FY 2025-26, the ₹75,000 standard deduction and zero-tax up to ₹12L threshold applies.
How to Increase Your In-Hand Salary
- Employer NPS under 80CCD(2):Ask HR to route up to 10% of Basic (private sector) or 14% (PSU/Govt) as employer NPS contribution. This reduces your taxable income even in the new regime — it's the most powerful lever available for salaried employees.
- Flexible Benefit Plan (FBP) restructuring: Shift cash components to tax-exempt reimbursements — meal allowance (₹50/meal × 2 × 22 days = ₹2,200/month tax-free), phone/internet reimbursement, and LTA.
- Choose the right tax regime: Use the Income Tax Calculator to compare old vs new regime. For most salaried employees without home loans, the new regime saves more tax from FY 2025-26 onwards.
- Increase Basic percentage: A lower Basic reduces PF contribution (capped at 12% of ₹15,000), increasing take-home in the short term. However, a lower Basic also reduces gratuity payout.
Frequently Asked Questions
Q: Why is my take-home salary so much less than my CTC?
A: CTC includes several components that never reach your bank account. Employer's PF contribution (12% of Basic, up to ₹1,800/month) and gratuity provision (4.81% of Basic) are part of your CTC but are retained by the employer on your behalf. On top of that, your take-home is further reduced by employee PF (₹1,800/month), professional tax (up to ₹2,500/year), and income tax TDS. Together, these can account for 20–35% of CTC for a ₹12–₹20 LPA package.
Q: How is PF calculated on salary?
A: Both you (employee) and your employer contribute 12% of your Basic salary to the Employees' Provident Fund (EPF). This contribution is capped at ₹1,800/month each (i.e., when your Basic exceeds ₹15,000/month, the PF stays flat at ₹1,800). Of the employer's 12%, 8.33% goes to EPS (Employee Pension Scheme) and 3.67% to EPF. For employees earning Basic above ₹15,000, PF contribution is optional but most employers default to the statutory cap.
Q: Is professional tax applicable in all states?
A: No. Professional tax is a state-level tax and applies only in states that have enacted it. Maharashtra charges ₹2,500/year (₹200/month for 11 months + ₹300 in February). Karnataka charges up to ₹2,400/year. West Bengal, Andhra Pradesh, Tamil Nadu, and Telangana also levy professional tax. States like Delhi, Rajasthan, Haryana, Uttar Pradesh, and Uttarakhand do not charge professional tax. Set the slider to ₹0 if your state does not levy professional tax.
Q: Does choosing the new tax regime increase my take-home salary?
A: For most salaried employees in FY 2025-26, the new regime results in lower TDS and therefore higher take-home. The new regime offers a ₹75,000 standard deduction and zero tax on income up to ₹12 lakh (with the Section 87A rebate). If your income is ₹12 LPA or below, your TDS is nil under the new regime. For higher salaries, whether new or old regime is better depends on your actual deductions — use the Income Tax Calculator to compare. Your employer deducts TDS based on whichever regime you declare at the start of the financial year.
Last updated: June 2026 · Based on FY 2025-26 tax slabs, EPF Act, and Payment of Gratuity Act · For informational purposes only.