Enter your CTC, the basic-salary percentage (typically 40-60% of gross) and your tax regime. Results update in real time. Professional tax defaults to 200/month.
PF and gratuity are computed on basic. 40-60% of gross is typical.
The tool computes both and shows which leaves more in-hand.
State levy. 200/month is typical in most states.
| Component | Monthly | Annual |
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| Regime | Annual Tax | Annual In-Hand | Monthly In-Hand |
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Why is my in-hand salary less than my CTC?
CTC includes costs the company spends on you that never reach your bank: the employer's PF contribution (12% of basic), gratuity provision (4.81% of basic), and your own income tax and PF deductions. In-hand = gross salary minus employee PF, professional tax and TDS. On a 12 lakh CTC with 50% basic, take-home is roughly 85,000 per month under the new regime thanks to the 87A rebate (zero tax up to 12 lakh taxable income).
What percentage of CTC is basic salary?
Basic is usually 40-60% of gross (often ~50%). A higher basic means higher PF contributions and gratuity (both tied to basic), which lowers in-hand but builds retirement savings. Companies set the split in your offer letter's breakup.
Old regime vs new regime: which gives more in-hand?
The new regime has lower slab rates and a 75,000 standard deduction but almost no exemptions. The old regime has higher rates but allows HRA, 80C and other deductions. Without big deductions the new regime usually wins; with home-loan interest, HRA and large 80C investments the old regime can. This calculator computes both so you can compare directly.
Is employer PF part of my salary?
No. Employer PF (12% of basic) goes to your EPF account, not your bank - it is part of CTC but not in-hand. It still builds your retirement corpus, and employee PF is an 80C deduction in the old regime.
How is tax deducted from my salary?
Your employer estimates your annual income tax and deducts it monthly as TDS. It depends on your declared regime, investments and declarations. If less is deducted you pay the shortfall at year end; if more, you claim a refund when filing.
Calculations use FY 2026-27 slab rates and standard assumptions (12% PF on basic, gratuity at 4.81%, 200/month professional tax). Actual payrolls vary by company structure, state levy and declarations. Verify with your offer letter and payroll team. This tool is for information only.