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.

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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).

Frequently Asked Questions

Is this in-hand salary calculator free to use?›

Yes, completely free. No sign-up, no login, and no hidden charges. You can calculate your in-hand salary from CTC as many times as you need.

Which country's salary structure does this calculator follow?›

This calculator is built for India (FY 2026-27 / AY 2027-28). It uses Indian payroll components — Basic, HRA, LTA, EPF, NPS, Professional Tax — and applies the latest New Regime (87A rebate up to ₹12L, standard deduction ₹75,000) and Old Regime tax slabs.

How do I use the in-hand salary calculator?›

Enter your Annual CTC and set the salary structure percentages (Basic %, HRA % of Basic, Other Allowances % of CTC). Select your tax regime (New or Old). For the Old Regime, enter monthly rent paid to claim HRA exemption. Set your state for Professional Tax, configure EPF rate, and optionally add NPS employer contribution. The calculator instantly shows your monthly take-home pay, full payslip, tax breakdown, and which regime saves more.

What does this calculator compute?›

It calculates your monthly and annual take-home salary (amount credited to your bank), full CTC breakup (Basic, HRA, LTA, Special Allowance, Bonus), all deductions (EPF, Professional Tax, TDS/income tax), HRA exemption under the Old Regime, new vs old regime tax comparison, effective tax rate, and a detailed month-by-month payslip with gross pay and net pay.

Why does my take-home differ from CTC?›

CTC (Cost to Company) includes components that never reach your bank: Employer EPF contribution, Employee EPF deduction (goes to your EPF account), NPS employer contribution, Gratuity provisioning, Professional Tax, and TDS (income tax). This calculator shows exactly where each rupee of your CTC goes, so you know the real amount that hits your salary account each month.

What Is Hand Salary Calculator India?

The hand salary (in-hand salary) calculator for India computes your actual take-home pay from your CTC (Cost to Company). Indian salary packages include multiple components — basic salary, HRA, special allowance, PF (EPF), professional tax, income tax (TDS), gratuity, and various perquisites — that make the gap between CTC and in-hand salary substantial, often 20–35%. Formly's free in-hand salary calculator breaks down every deduction for FY 2026-27 under both New and Old Tax Regimes.

Why Formly's Hand Salary Calculator India Is the Best Free Option

✓Full CTC to in-hand salary breakdown — every component from basic to TDS calculated.
✓Both tax regimes — compare take-home under New vs Old regime to choose better option.
✓All standard deductions included: PF (12%), professional tax, TDS, gratuity provisioning.
✓HRA exemption calculation — computes metro and non-metro HRA tax exemption automatically.
✓Monthly and annual views — see your tax impact on a monthly TDS basis.
✓FY 2026-27 updated — Budget 2025 changes including revised standard deduction and slab rates.

Free Alternative to ClearTax in-hand salary calculator, AmbitionBox salary calculator

→ClearTax in-hand salary calculator: Redirects to tax filing. Formly is calculation-only with no upsell.

→AmbitionBox salary calculator: AmbitionBox focuses on salary benchmarking. Formly is for accurate take-home calculation.

Who Uses Hand Salary Calculator India?

Job seekers evaluating offers

Understand actual take-home pay from a quoted CTC before accepting a job offer.

Employees negotiating salaries

Know exactly how an increment in CTC translates to monthly take-home pay.

HR & payroll teams

Compute accurate monthly TDS for new employees across different CTC bands.

Finance planners

Plan monthly budgets and EMI affordability based on actual take-home salary.

Popular searches: in-hand salary calculator India, CTC to in-hand salary calculator, take home salary calculator India 2026, salary calculator India FY 2026-27, monthly salary calculator India.

Looking for a detailed guide? Read our in-depth tutorial on using Hand Salary Calculator India for professional results.

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