CTC to In-Hand Salary Calculator

How your salary becomes your take-home

Every payslip in India follows the same journey from CTC to bank credit. Understanding each step is the first step to negotiating better and planning your taxes smarter.

Step 1: CTC → Gross Salary

CTC includes everything the employer spends on you. Gross salary is the part that is actually paid out to you (before deductions). The gap is the employer's PF contribution, employer NPS contribution, and any non-cash benefits.

Gross Salary = Basic + HRA + Special Allowance + Bonus

You can enter your salary two ways: start with total CTC and let the calculator split it into components, or enter Basic and HRA directly (useful if you know your monthly payslip numbers and want the calculator to compute CTC for you).

Step 2: Gross → Taxable Income

The Income Tax Act allows certain exemptions and deductions before taxing your salary. Under the old regime, you can claim 80C (₹1.5L), 80D (₹25K–50K), HRA exemption, and more. Under the new regime, only the standard deduction of ₹75,000 applies.

Taxable Income = Gross Salary − Standard Deduction − Other Deductions

Step 3: Taxable Income → Tax

India uses progressive tax slabs: higher income is taxed at higher rates. A 4% health and education cess is added to the computed tax. This calculator uses the FY 2026-27 slabs for both old and new regimes.

Step 4: Gross → Net (In-Hand)

Finally, three deductions are subtracted from your gross salary to arrive at what lands in your bank account:

• Employee PF: Your share of the PF contribution. Post-September 2014, if your first EPF-covered job had Basic+DA above ₹15,000, you are an "excluded employee": no EPS pension, and your employer contributes the full percentage to EPF only. Many MNCs (e.g., Morgan Stanley) also calculate PF on the full basic salary without the ₹15,000 cap. Use the PF cap toggle and percentage inputs to match your company's policy.
• Professional Tax: State-specific, ₹0–₹2,500/year
• Income Tax (TDS): Monthly advance tax based on annual projection under the selected regime

In-Hand = Gross Salary − Employee PF − Professional Tax − Income Tax

Employer NPS: Some companies let you redesign your salary so the employer contributes to NPS instead of (or in addition to) PF. Employer NPS contributions are tax-free for you up to 10% of basic+DA under the old regime, or 14% under the new regime (Section 80CCD(2)). The calculator includes this as a separate input and applies the correct cap automatically.

Why the new regime? Since FY 2024-25 the new tax regime is the default. It has lower slab rates but removes most deductions (only the ₹75,000 standard deduction remains). The old regime keeps 80C, 80D, HRA exemption, etc., but the slabs are higher. Use the toggle in the calculator to see which one leaves more money in your pocket for your actual deduction level.

Professional Tax by State (2026)