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Salary Calculator · CTC to In-Hand

What will you actually take home?

Enter your CTC and we'll estimate your monthly in-hand salary — employer PF, gratuity provision, employee PF, professional tax and income tax (TDS), broken down line by line for FY 2026-27.

  • Updated July 2026
  • Built by CA Anil Agarwal

Full cost-to-company as per your offer letter.

Most offer letters set basic between 40–50% of CTC. Adjust if yours differs — the rest is treated as allowances.

Default ₹200/month is a common state slab. Professional tax varies by state and even by income band — check your state's PT schedule (some states, and some months, charge ₹300).

Tax regime for TDS estimate

New regime is the FY 2026-27 default. Old-regime figures here ignore 80C/80D/HRA deductions — use the income tax calculator for a deduction-aware old-regime number.

Estimated in-hand salary

₹93,795 / month

₹11,25,540 / year

Annual CTC
₹12,00,000
− Employer PF
− ₹21,600
− Gratuity provision
− ₹28,860
Gross salary
₹11,49,540
Basic
₹6,00,000
Allowances
₹5,49,540
− Employee PF
− ₹21,600
− Professional tax
− ₹2,400
− Income tax (TDS)
− ₹0
In-hand (annual)
₹11,25,540
In-hand (monthly)
₹93,795

This is an ESTIMATE, not a payslip. Basic %, professional tax slabs, HRA and other allowance splits vary by employer and by state, and this calculator does not apply HRA exemption, LTA, or old-regime deductions (80C/80D) to the tax figure. For your exact take-home, check your appointment letter/payslip structure or confirm with a Chartered Accountant.

Run payroll the way this calculator explains it.

TatvaBooks payroll computes PF, ESI, professional tax and TDS per employee — correctly, every month — and posts the journal entries automatically. No spreadsheet re-derivation required.

How it works

From CTC to bank account.

What CTC actually includes

Cost-to-company (CTC) is the total amount your employer spends on you annually — not what lands in your bank account. It bundles your gross salary (basic + allowances) with employer-side costs you never directly receive: employer PF contribution (12% of basic, subject to the statutory wage ceiling) and a gratuity provision (typically 4.81% of basic, payable only after 5 years of continuous service).

From CTC to gross salary

Gross salary — what appears on your payslip before deductions — is CTC minus employer PF and the gratuity provision. Gross splits into basic (usually 40–50% of CTC) and allowances (HRA, special allowance, LTA and others, which make up the rest).

From gross to in-hand

From gross salary, three deductions bring you to in-hand pay: employee PF (another 12% of basic, subject to the same wage ceiling as employer PF), professional tax (a small state-level monthly levy), and income tax (TDS) — calculated on your annual salary using the same FY 2026-27 slab logic as our income tax calculator, then divided by 12 for the monthly deduction.

Where estimates diverge from your actual payslip

Real payslips vary by employer: basic % differs, some employers structure HRA/LTA/meal cards precisely for tax efficiency, some cap PF and some don't, and professional tax slabs differ by state and sometimes by month. This calculator uses sensible statutory defaults — adjust the basic % and PF toggle to match your actual offer letter for a closer number, and check our HRA calculator if you pay rent, since HRA exemption isn't modelled here.

Frequently asked questions

Salary calculator — common questions.

How does this salary (CTC to in-hand) calculator work?
Enter your annual CTC and the basic-salary percentage from your offer letter (default 50%). The calculator estimates employer PF (12% of basic, capped at ₹15,000/month unless you opt for uncapped PF), a gratuity provision (4.81% of basic), employee PF, professional tax, and income tax (TDS) using the same slab logic as our income tax calculator — then arrives at your estimated monthly and annual in-hand salary.
Why is my in-hand salary lower than my CTC?
CTC (cost to company) includes employer contributions you never see in your bank account — employer PF and the gratuity provision — plus employee-side deductions like employee PF, professional tax and income tax (TDS). In-hand salary is what's left after all of these. A ₹12L CTC commonly nets to roughly ₹85,000–95,000/month in-hand depending on basic %, PF choice, and tax regime.
What is the PF wage ceiling and why does it matter?
By law, employers only need to compute PF (12% employer + 12% employee) on basic salary up to ₹15,000/month — even if actual basic is higher. Many employers cap PF at this ceiling to keep take-home higher; some voluntarily contribute on full (uncapped) basic. Toggle 'Uncapped PF' in the calculator to see both scenarios — uncapped PF raises retirement savings but lowers monthly in-hand pay.
Does this calculator account for HRA exemption?
No — this calculator treats everything above basic as a lump 'allowances' figure and does not separately model HRA exemption under Section 10(13A), which depends on rent paid, city (metro/non-metro) and basic salary. For a more precise take-home number if you pay rent, use our HRA calculator alongside this one.
Is professional tax the same in every state?
No — professional tax (PT) is a state-level levy and slabs vary widely. Maharashtra, Karnataka, West Bengal and others each set their own monthly/annual PT slabs, and some states charge a higher amount in one specific month. ₹200/month is a common default, but adjust it to your state's actual slab, or set it to ₹0 if you're in a state that doesn't levy PT (e.g., Delhi, Haryana, UP, most northern states).
Which tax regime should I pick for my TDS estimate?
New regime is the default for FY 2026-27 and applies unless you inform your employer otherwise. It usually results in lower tax (and hence higher in-hand) unless you claim large deductions under the old regime — 80C, 80D, HRA, home-loan interest. This calculator's old-regime toggle ignores those deductions; run our full income tax calculator for a deduction-aware comparison before deciding.

From estimate to accurate payslip

Books that run payroll correctly, every month.

TatvaBooks computes PF, ESI, professional tax and TDS per employee, handles per-employee salary revisions, and posts the accounting entries automatically. Estimation is one button. Payroll is the next.