How is in-hand salary calculated from CTC in India?

In-hand salary = Gross Salary − PF Employee Contribution − Professional Tax − Income Tax. Gross salary includes Basic, HRA, Special Allowance, and Other Allowances. PF employee is 12% of basic (capped at ₹1,800/month). Income tax depends on the regime chosen.

What is the difference between CTC and in-hand salary?

CTC (Cost to Company) includes all costs the employer bears — Basic, HRA, allowances, employer PF, and gratuity. In-hand or take-home salary is what you actually receive after deducting employee PF, professional tax, and income tax.

Which tax regime is better in FY 2026-27?

It depends on your deductions. The new regime (default) offers a ₹75,000 standard deduction and zero tax up to ₹12L income with 87A rebate. The old regime lets you claim HRA, 80C (₹1.5L), and other deductions. The calculator shows which saves more for your specific situation.

What is the PF contribution limit in 2026?

Employee and employer each contribute 12% of basic salary to EPF. The contribution is applied on the actual basic salary — there is no statutory cap enforced by most employers. Mandatory PF enrollment applies when basic is ≤ ₹15,000/month.

Is professional tax deductible from income tax?

Yes, professional tax paid is deductible under Section 16(iii) of the Income Tax Act when calculating taxable income. It is capped at ₹2,500 per year across India.

All Tools

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In-Hand Salary Calculator — FY 2026-27

Free to Use

Calculate your exact in-hand salary from CTC. FY 2026-27 tax slabs, new vs old regime comparison, EPF/NPS account breakdown, HRA exemption, and full payslip.

Country

Tax Regime — FY 2026-27 (AY 2027-28)

• Std deduction ₹75,000 • 87A rebate ₹60,000 → zero tax up to ₹12L income

• Salaried with ≤ ₹12.75L gross pay zero tax after std deduction

• HRA & LTA not exempt • No 80C • NPS employer 80CCD(2) allowed

Salary Structure

Annual CTC (₹)

≈ ₹1,00,000/month CTC

Basic Salary % of CTC(₹4,80,000/yr)

Typical: 40–50%

HRA % of Basic(₹2,40,000/yr)

Metro 50% · Non-metro 40%

Other Allowances % of CTC(₹1,20,000/yr)

Conveyance, phone, etc.

New regime: HRA is a payslip component but not exempt. Rent deduction is unavailable. Switch to Old Regime to claim HRA exemption.

Bonus & Additional Allowances

Annual amounts. Leave 0 if not part of your CTC.

Bonus / Variable Pay (₹/year)

Fully taxable in both regimes

LTA — Leave Travel Allowance (₹/year)?

Food Coupons / Meal Allowance (₹/year)?

Provident Fund & NPS

EPF (Employee Provident Fund)

Employee & employer contribute same rate

PF Rate (% of Basic)(₹57,600/yr each)

Statutory: 12% · max 12%

Employee PF → Your EPF account (not in hand)

Employer PF → 3.67% EPF + 8.33% EPS (pension)

New regime: No 80C — Employee PF not deductible

NPS Employer Contribution (% of Basic)?

0 = not applicable · max 10% (private) · deductible in both regimes

Professional Tax

State

Annual PT: ₹2,400

Monthly Take-Home

₹88,276

New Regime

Annual Take-Home

₹10,59,312

88.3% of CTC

Effective Tax Rate

0.0%

Tax / CTC

✓ New Regime saves more

Save ₹1,19,905/year by choosing New Regime

New Regime Tax

₹0

Old Regime Tax

₹1,19,905

Where Your Compensation Goes

PF and NPS are credited to your own accounts — not your bank account.

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Bank Account (Take-Home)

After TDS, PF deduction & Professional Tax

₹88,276/mo

₹10,59,312/yr

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EPF Account (Not in Hand)

Your share: ₹57,600/yr + Employer: ₹57,600/yr

₹9,600/mo

₹1,15,200/yr total

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Income Tax (TDS)

Deducted at source, paid to central government

₹0/mo

₹0/yr (incl. 4% cess)

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Gratuity Provision

Employer accrual at 4.81% of basic — paid on exit after 5 yrs service

₹1,924/mo

₹23,088/yr

CTC Distribution

Bank Account (Take-Home)88.3%₹10,59,312

EPF — Your Share4.8%₹57,600

EPF — Employer Share4.8%₹57,600

Professional Tax0.2%₹2,400

Gratuity Provision1.9%₹23,088

Salary Component Split

Basic42.9%₹4,80,000

HRA21.4%₹2,40,000

Other Allow.10.7%₹1,20,000

Special Allow.25.0%₹2,79,312

CTC Breakup

Component	Annual	Monthly
Earnings (In Payslip)
Basic Salary	₹4,80,000	₹40,000
HRA	₹2,40,000	₹20,000
Other Allowances	₹1,20,000	₹10,000
Special Allowance(balancing figure)	₹2,79,312	₹23,276
Employer Contributions (CTC only, not in payslip)
Employer PF (12% of basic)	₹57,600	₹4,800
Gratuity Provisioning (4.81% of basic)	₹23,088	₹1,924
Total CTC	₹12,00,000	₹1,00,000
Deductions from Payslip
Employee PF (12% of basic) → Your EPF account (not in hand, but yours)	-₹57,600	-₹4,800
Professional Tax → State government	-₹2,400	-₹200
Income Tax + Cess (TDS) → Central government	-₹0	-₹0
= Net Take-Home (Bank)	₹10,59,312	₹88,276

Monthly Payslip

Earnings

Basic₹40,000

HRA₹20,000

Other Allow.₹10,000

Special Allow.₹23,276

Gross Pay₹93,276

Deductions

Employee PF (12%)

→ Your EPF account

₹4,800

Professional Tax

→ State government

₹200

TDS / Income Tax

→ Central government

₹0

Total Deductions₹5,000

Net Pay (Take-Home)₹88,276

Exemptions & Tax Benefits

Standard Deduction

₹75,000 (new regime)

saves ₹75,000

Employee PF — 80C

Not available in new regime

n/a (new)

Tax Computation — New Regime

Gross Salary₹11,19,312

− Standard Deduction-₹75,000

− Professional Tax-₹2,400

Taxable Income₹10,41,912

87A Rebate−₹0 (full rebate)

Tax + 4% Cess₹0

FY 2026-27 (AY 2027-28): Slabs unchanged per Union Budget 2026. New regime default. 87A rebate ₹60,000 for taxable ≤ ₹12L (effective zero tax ≤ ₹12.75L for salaried with std deduction).

EPF: Employee + Employer PF both go to your EPF account — not your bank. Withdrawal allowed on resignation (with conditions) or retirement.

PT capped at ₹2,500/year · Food coupon exemption ₹26,400/year (old regime) · Gratuity: 4.81% of basic, paid after 5 years of continuous service · Surcharge not included (applies for income > ₹50L).

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