Educational Purpose Only:Calculations use New Tax Regime (FY 2025-26) with standard deduction. Actual in-hand pay may vary based on your employer's salary structure and other allowances.
What is CTC vs In-hand salary?
Cost to Company (CTC) is the total annual amount your employer spends on you, including your basic salary, allowances, employer PF contributions, and other benefits. Your in-hand or take-home salary is what actually reaches your bank account each month — which is significantly lower than CTC after mandatory deductions.
Key deductions from CTC to arrive at in-hand pay include: employer PF contribution (which is part of CTC but not paid to you directly), employee PF contribution (deducted from gross), professional tax (state levy, typically ₹2,400 per year), and income tax calculated on taxable income.
New Tax Regime slabs (FY 2025-26)
| Income Slab | Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 – ₹7,00,000 | 5% |
| ₹7,00,001 – ₹10,00,000 | 10% |
| ₹10,00,001 – ₹12,00,000 | 15% |
| ₹12,00,001 – ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
A 4% Health and Education cess applies on the tax amount. Full rebate under Section 87A is available if taxable income does not exceed ₹7,00,000 (effectively zero tax up to ₹7L under the new regime).
Frequently Asked Questions
What is the difference between CTC and gross salary?
CTC (Cost to Company) is the total expense the employer bears for an employee, including gross salary plus employer's PF contribution, gratuity provisions, and other benefits. Gross salary is the total pay before tax deductions but after the employer's PF contribution is removed. In-hand salary is gross salary minus employee PF, professional tax, and income tax.
Why is my in-hand salary much less than my CTC?
The gap between CTC and in-hand pay comes from multiple deductions: (1) Employer's PF contribution (12% of basic, part of CTC but not paid to you), (2) Employee's PF contribution (12% of basic, deducted from gross), (3) Professional tax (state-specific, ~₹200/month), (4) Income tax as per your applicable slab. The effective take-home is typically 65–80% of CTC.
What is the standard deduction for salaried employees?
Under the New Tax Regime (FY 2025-26), salaried employees get a standard deduction of ₹75,000. Under the Old Tax Regime, the standard deduction is ₹50,000. This deduction is automatically applied before computing your taxable income.
Should I choose old or new tax regime?
The new tax regime has lower slab rates but fewer exemptions. It is generally beneficial if your total deductions (HRA, 80C, 80D, home loan interest, NPS) are less than ~₹3.75 lakh for incomes above ₹15 lakh. Calculate your tax under both regimes using the income tax calculator to make an informed choice.
Related Calculators
This calculator is for educational and illustrative purposes only. Actual in-hand salary depends on your employer's specific salary structure, additional allowances, perquisites, and other factors. Consult a tax professional or HR for your exact take-home pay.
About Salary Calculator (CTC to In-hand)
Break down your CTC into take-home pay after PF, professional tax, and income tax deductions. Uses the New Tax Regime for FY 2025-26 with the ₹75,000 standard deduction. This tool is designed to be simple and accessible for users who need quick, reliable results.
When to use this tool
Use the salary calculator (ctc to in-hand) when you need an accurate, immediate calculation without installing software or registering an account. It is especially useful for everyday decisions, quick comparisons, and planning where you need numbers fast.
How it works
The calculator applies standard, well-known formulas and conventions appropriate to the domain. Results are computed instantly in your browser to preserve privacy and avoid sending personal data to servers.
Limitations and tips
This tool provides informative estimates and is not a substitute for professional advice. For complex or high-stakes decisions, verify results with a qualified professional. Double-check inputs such as units, dates, and currency settings before making decisions.