In-Hand Salary Calculator: CTC to Take-Home Pay
₹8 lakh a year, ₹66,667 a month on paper
Basic salary ÷ CTC, from the salary break-up in your offer letter.
A state tax on salaries, at most ₹2,500 a year. Enter 0 if your state doesn’t charge it.
₹61,264/mo
In-hand each month
Tax regime · Tax year 2026-27
Provident fund
Gratuity
₹7,59,169 gross − ₹24,000 deductions = ₹7,35,169 a year
Income tax: ₹0 a year under the new regime.
The old regime would give ₹4,293 a month less with no deductions entered.
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Where your CTC goes
You take home 92% of it
- In hand
- PF (yours + employer’s)
- Tax
- Gratuity
| Item | Per year | Per month |
|---|---|---|
| CTC | ₹8,00,000 | ₹66,667 |
| − Employer PFGoes to your PF account, not your bank | ₹21,600 | ₹1,800 |
| − GratuityPaid when you leave after the qualifying years | ₹19,231 | ₹1,603 |
| Gross salary | ₹7,59,169 | ₹63,264 |
| − Your PF contribution | ₹21,600 | ₹1,800 |
| − Professional tax | ₹2,400 | ₹200 |
| In-hand salary | ₹7,35,169 | ₹61,264 |
The short answer
In-hand salary is your CTC minus the parts that never reach your bank (employer PF and gratuity), minus your own PF, professional tax and income tax. On an ₹8 lakh CTC with basic at half of CTC, PF on ₹15,000 a month and the new regime, that is about ₹61,264 a month.
How to use it
- 1
Enter the annual CTC from your offer letter.
- 2
Set basic pay as a share of CTC, and how your employer calculates PF and gratuity. Your offer letter or HR can tell you.
- 3
Pick the tax regime and read your monthly take-home, with every deduction shown underneath.
How CTC becomes in-hand salary
In-hand = CTC − employer PF − gratuity − your PF − professional tax − income tax
- Provident fund: you and your employer each pay 12% of PF wages. Many employers cap PF wages at ₹15,000 a month (₹1,800 each); others pay on the full basic.
- Gratuity: 15 days’ wages for each year of service on a 26-day month, which is about 4.81% of basic a year. Employers who show it in CTC hold it until you leave.
- Professional tax: charged by some states on salaries, at most ₹2,500 a year under Article 276 of the Constitution. Only the old regime lets you deduct it.
- Basic pay: under the Code on Wages, in force from 21 November 2025, allowances above half of total pay count as wages, so new structures keep basic near half of pay or more.
Income tax slabs, Tax year 2026-27
New regime
| Taxable income | Rate |
|---|---|
| Up to ₹4 lakh | Nil |
| ₹4 lakh to ₹8 lakh | 5% |
| ₹8 lakh to ₹12 lakh | 10% |
| ₹12 lakh to ₹16 lakh | 15% |
| ₹16 lakh to ₹20 lakh | 20% |
| ₹20 lakh to ₹24 lakh | 25% |
| Above ₹24 lakh | 30% |
Standard deduction ₹75,000. Tax is nil on taxable income up to ₹12 lakh. No deduction for professional tax, 80C or HRA.
Old regime
| Taxable income | Rate |
|---|---|
| Up to ₹2.5 lakh | Nil |
| ₹2.5 lakh to ₹5 lakh | 5% |
| ₹5 lakh to ₹10 lakh | 20% |
| Above ₹10 lakh | 30% |
Standard deduction ₹50,000. Tax is nil on taxable income up to ₹5 lakh. Professional tax, 80C (up to ₹1.5 lakh) and HRA can be deducted.
Both regimes add 4% health and education cess. Surcharge applies above ₹50 lakh of taxable income (capped at 25% in the new regime), with marginal relief. The new regime is the default under the Income-tax Act, 2025; Budget 2026-27 left these slabs unchanged. Your employer may spread tax unevenly across months, so treat the result as your average month.
- Income-tax Act, 2025 (Gazette of India)(opens in a new tab) (in force from 1 April 2026)
- Finance Act, 2026 (Gazette of India)(opens in a new tab) (30 March 2026)
- EPFO: present rates of contribution(opens in a new tab) (EPFO, checked October 2026)
- Code on Wages, 2019, section 2(y)(opens in a new tab) (in force from 21 November 2025)
- Constitution (Sixtieth Amendment) Act: Article 276 cap(opens in a new tab) (1988)
Questions students ask
How do I calculate in-hand salary from CTC?
Take CTC, subtract employer PF and gratuity to get gross salary, then subtract your own PF, professional tax and income tax. What is left, divided by 12, is your monthly in-hand salary.
Why is my in-hand salary so much lower than my CTC?
CTC includes money that is yours but not paid monthly: the employer’s PF goes to your PF account and gratuity is paid when you leave after the qualifying service. Your own PF, professional tax and income tax then come out of the gross.
Which tax regime gives higher take-home?
The new regime is the default for tax year 2026-27: lower rates, a ₹75,000 standard deduction and no tax on taxable income up to ₹12 lakh, but almost no other deductions. The old regime keeps 80C, HRA and professional tax deductions with a ₹50,000 standard deduction. The calculator shows both for your numbers.
Why is basic pay set to 50% of CTC?
Under the Code on Wages, in force from 21 November 2025, allowances above half of total pay are added back to wages, so most new salary structures keep basic pay and similar wages at about half of pay or more. Change it to match the break-up in your offer letter.
Is the in-hand salary the same every month?
Not always. Employers spread tax across the year, bonuses and arrears change it, and some states collect professional tax unevenly across months. Treat this as your average month.
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