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In-Hand Salary Calculator

Calculate monthly in-hand salary from CTC after estimated tax, EPF, professional tax and other deductions. Compare tax regimes and download your salary breakdown.

AY 2026–27 Tax Slabs Active
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Total Annual CTC Cost to Company before deductions
Currency
₹
₹3 Lakh ₹15 Lakh ₹30 Lakh ₹50 Lakh+
Presets:
Not paid in monthly payroll
%
₹75k / 87A

New: ₹75k std. deduction. Old: HRA, 80C, 80D & NPS.

How is income tax estimated for AY 2026–27?

New Regime (u/s 115BAC): ₹75,000 standard deduction for salaried employees. Tax slabs: ₹0–4L: Nil, ₹4–8L: 5%, ₹8–12L: 10%, ₹12–16L: 15%, ₹16–20L: 20%, ₹20–24L: 25%, Above ₹24L: 30%. Section 87A rebate gives zero tax up to ₹12 Lakh net taxable income (with marginal relief).

Old Regime: ₹50,000 standard deduction. Slabs: ₹0–2.5L: Nil, ₹2.5–5L: 5%, ₹5–10L: 20%, Above ₹10L: 30%. Allows Section 80C (up to ₹1.5L), 80D (health insurance), 80CCD(1B) NPS (up to ₹50k), and HRA exemptions.

Cess: 4% Health & Education Cess applies to final tax under both regimes.

Estimated Monthly Take-Home Pay
₹0 / month
Annual Take-Home Pay ₹0 / yr
Take-Home Efficiency 0% of CTC
Gross Cash Salary ₹0
Est. Income Tax (TDS) ₹0
Employee EPF + PT ₹0
Employer Benefits ₹0
Take-Home: 0% Tax: 0% Deductions: 0% Employer: 0%
New Tax Regime (AY 2026–27) Rebate u/s 87A Applicable
CTC → Take-Home Waterfall

Understanding why Annual CTC ÷ 12 does not equal your monthly bank credit:

1. Annual CTC ₹12,00,000
2. (−) Employer Benefits & EPF −₹50,442
3. (=) Gross Cash Salary ₹11,49,558
4. (−) Employee EPF + PT + Deductions −₹24,000
5. (−) Estimated Income Tax (TDS) −₹0
6. (=) Monthly In-Hand Pay Annual: ₹11,25,558
₹93,797 / mo
Annual CTC Distribution

Browser-local calculation: Your salary inputs and deductions are calculated locally in your web browser. Zero personal financial data is transmitted or stored on any server.

Estimated income tax & take-home: Actual monthly bank credit may vary based on your employer's exact payroll structure, flexible benefit plans, perquisites, and state professional tax rules.

New Tax Regime vs Old Tax Regime Comparison

Comprehensive Guide

How CTC Converts into In-Hand Take-Home Salary

Cost to Company is what your employer spends to retain you, not the amount credited to your bank. Three layers sit between CTC and take-home: non-cash employer costs, monthly payroll deductions, and income-tax TDS. Read the sequence below, then use the calculator above to see the same steps with your numbers.

1

Remove employer costs

Employer EPF (12%), gratuity provision (about 4.81% of basic), and group insurance sit inside CTC but never hit your salary account. Subtract these to get gross cash salary.

2

Deduct EPF and PT

Employee EPF is 12% of basic, or capped at ₹1,800/month if the ₹15,000 wage ceiling applies. State professional tax (often ₹0–₹200/month) is also withheld before tax.

3

Withhold income-tax TDS

After the standard deduction (₹75,000 new regime or ₹50,000 old), your employer estimates annual tax under AY 2026–27 slabs and withholds 1/12 each month.

In-hand salary formula

Monthly take-home is computed in this order. Each line uses the result of the line above.

Gross cash = CTC − (Employer EPF + Gratuity + other employer benefits)
Taxable income = Gross cash − Standard deduction − Eligible exemptions
Monthly in-hand = (Gross cash − Employee EPF − PT − Annual TDS) ÷ 12

New vs Old Tax Regime (AY 2026–27)

The New Regime is the default under Section 115BAC. The Old Regime is useful only when HRA, 80C, 80D, and NPS claims are large enough to beat the extra ₹25,000 standard deduction and lower new-regime slabs. Use the comparison table above with your actual investments — the better regime changes with CTC and deductions.

New Tax Regime

Default
  • •₹75,000 standard deduction for salaried employees.
  • •Slabs: Nil to ₹4L, then 5% / 10% / 15% / 20% / 25% / 30% in ₹4L steps up to ₹24L+.
  • •Section 87A rebate can make tax ₹0 up to ₹12 Lakh net taxable income, with marginal relief above that.
  • •HRA, 80C, and 80D are not available (NPS employer contribution may still apply separately).

Old Tax Regime

Opt-in
  • •₹50,000 standard deduction.
  • •Slabs: Nil to ₹2.5L, 5% to ₹5L, 20% to ₹10L, 30% above ₹10L.
  • •Allows HRA u/s 10(13A), 80C up to ₹1.5L, 80D (health insurance), and 80CCD(1B) NPS up to ₹50k.
  • •Usually wins only if total exemptions are high relative to CTC.

4% Health & Education Cess applies to tax under both regimes.

Why variable bonus changes monthly in-hand

Many CTC offers include 10–25% as performance bonus. That amount is part of annual CTC and tax, but it is usually paid once or twice a year — not in the monthly credit. This tool splits fixed monthly take-home from annual variable pay so you can budget rent and EMIs on the amount that actually arrives each month.

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Formula Reference

Formula

In-Hand Take-Home Salary Formula

In-hand salary (take-home pay) is the net amount deposited into an employee bank account after statutory payroll deductions and mo...

Compensation Strategy Insights

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Education

Understanding In-Hand Salary Calculation in India

01

CTC vs Gross Salary vs Net Take-Home Salary

Cost to Company (CTC) is the total annual expenditure an employer incurs on an employee. Gross Salary is CTC minus annual employer contributions like Employer PF (12%) and Gratuity (4.81%). Net Take-Home Salary is Gross Salary minus Employee PF deductions, Professional Tax (PT), and Income Tax TDS.

02

New Tax Regime vs Old Tax Regime for FY 2025-26

Under Budget 2024/2025, the New Tax Regime offers lower slab rates and a ₹75,000 standard deduction with zero tax liability up to ₹7.75 Lakh CTC (via Section 87A rebate). The Old Tax Regime allows claiming HRA exemptions, Section 80C (up to ₹1.5L), Section 80D (health insurance), and Section 80CCD(1B) NPS.

03

Employee Provident Fund (EPF) Rules

EPF is calculated as 12% of Basic + DA. If an employer permits capping EPF at the statutory minimum basic wage of ₹15,000/month, the deduction is ₹1,800/month (₹21,600/year), significantly boosting your monthly take-home pay.

04

Gratuity, Allowances & Professional Tax (PT)

Gratuity is funded by the employer (at 4.81% of Basic Salary) and is payable upon 5 years of continuous service. Professional Tax (PT) is a state-level deduction capped at ₹2,500/year (approx. ₹200/month). Structuring allowances like HRA, LTA, and meal cards effectively helps reduce taxable gross income and increases net take-home earnings.

Good to know

Questions, answered

Quick answers about how this tool works.

CTC (Cost to Company) includes gross salary plus employer contributions (EPF, gratuity, insurance). In-hand salary is the actual net amount deposited into your bank account after all employee deductions and income tax withholdings.

Monthly In-Hand Salary = (Gross Annual Cash Salary − Employee EPF − Professional Tax − Other Deductions − Annual TDS) ÷ 12.

Your take-home depends on your specific income level, deductions, exemptions, and tax regime. The calculator compares both regimes side by side based on your exact numbers.

12% of Basic Salary + DA is standardly contributed by both employee and employer. Employees can also cap their contribution at ₹1,800/month if their employer permits statutory wage ceiling capping.

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