Salary Calculator India
Accurately convert your annual Cost to Company (CTC) into your net monthly take-home salary. Break down your payslip into Basic pay, HRA, Provident Fund (EPF), Professional Tax, and compare New vs. Old Tax Regimes for FY 2026–27.
How is Monthly In-Hand Salary Calculated from Annual CTC in India?
Direct Answer: In India, your monthly in-hand (take-home) salary is calculated by taking your annual Cost to Company (CTC), subtracting mandatory employer retirement provisions (Employer PF and Gratuity) to get your Gross Salary, dividing by 12 months, and then deducting mandatory employee contributions (Employee PF, Professional Tax, and Income Tax TDS):
Total cost employer spends (Direct pay + Retirals + Perks)
Annual CTC (Offer Letter)Employer PF (₹1,800/mo) & Gratuity (4.81% basic)
Gross = CTC − RetiralsBase cash earned each calendar month before taxes
Monthly Gross = Gross ÷ 12Deduct Employee EPF, Professional Tax, & TDS
Take-Home = Gross − DeductionsOf CTC credited to your bank account. High-bracket earners (>₹20 LPA) receive closer to 70%–75% due to 30% slab TDS.
Salaried employees pay zero income tax under the New Regime with ₹75,000 standard deduction & Section 87A rebate.
12% on the statutory ₹15,000 wage ceiling for both employee and employer, unless uncapped by your employer policy.
Interactive CTC to In-Hand Calculator
Enter your CTC to see your exact itemized salary breakdown, tax liability, and take-home pay.
Estimated Monthly Take-Home Salary by CTC (FY 2026–27)
The table below provides a verified take-home salary projection across common annual CTC levels in India under the New Tax Regime for FY 2026–27 (AY 2027–28). Calculations assume standard corporate parameters: 50% basic salary, statutory EPF (₹1,800/month employee and employer contributions), ₹200/month Professional Tax, ₹75,000 standard deduction, Section 87A rebate, and 0% bonus holdback:
| Annual CTC | Monthly Gross | Monthly TDS (Tax) | Total Monthly Deductions | Monthly In-Hand | Annual In-Hand |
|---|---|---|---|---|---|
| ₹3 LPA | ₹23,200 | ₹0 | ₹2,000 | ₹21,200 | ₹2.54 Lakh |
| ₹5 LPA | ₹39,867 | ₹0 | ₹2,000 | ₹37,867 | ₹4.54 Lakh |
| ₹7 LPA | ₹56,533 | ₹0 | ₹2,000 | ₹54,533 | ₹6.54 Lakh |
| ₹10 LPA | ₹81,533 | ₹0 | ₹2,000 | ₹79,533 | ₹9.54 Lakh |
| ₹12 LPA | ₹98,200 | ₹0 | ₹2,000 | ₹96,200 | ₹11.54 Lakh |
| ₹15 LPA | ₹1,23,200 | ₹10,459 | ₹12,459 | ₹1,10,741 | ₹13.29 Lakh |
| ₹20 LPA | ₹1,64,867 | ₹22,622 | ₹24,622 | ₹1,40,245 | ₹16.83 Lakh |
| ₹25 LPA | ₹2,06,533 | ₹35,622 | ₹37,622 | ₹1,68,911 | ₹20.27 Lakh |
| ₹30 LPA | ₹2,48,200 | ₹48,622 | ₹50,622 | ₹1,97,578 | ₹23.71 Lakh |
| ₹40 LPA | ₹3,31,533 | ₹74,622 | ₹76,622 | ₹2,54,911 | ₹30.59 Lakh |
| ₹50 LPA | ₹4,14,867 | ₹1,00,622 | ₹1,02,622 | ₹3,12,245 | ₹37.47 Lakh |
*Note: Figures above reflect post-tax take-home salary after factoring in EPF, Professional Tax, and Income Tax (TDS under the New Regime for FY 2026–27 with standard deduction of ₹75,000 and Section 87A rebate of up to ₹60,000 on taxable income up to ₹12,00,000 — providing zero income tax liability for salaried individuals with gross salary up to ₹12,75,000). If your organization deducts uncapped PF (12% of full basic rather than the ₹1,800 statutory cap) or includes performance bonuses in CTC, actual monthly in-hand will adjust accordingly. Use the interactive form above to customize your exact parameters.
Gross Salary vs. Net Salary (Take-Home Pay)
Direct Answer:Gross salary is your total promised earnings before any taxes or retirement deductions (Basic + HRA + Special Allowance + Bonuses). Net salary (in-hand pay) is the actual cash deposited into your bank account after subtracting Employee PF, Professional Tax, and Income Tax (TDS).
Total cash earnings promised on your payslip before any taxes or retirement deductions:
- Includes: Basic Salary + HRA + Special Allowance + LTA + Bonuses
- Excludes: Employer PF contribution, Gratuity provisions, and corporate insurance
- Typically constitutes 80% to 92% of CTC
Actual cash credited to your bank account on payday:
- Deductions: Employee PF (EPF), Professional Tax (PT), Income Tax (TDS)
- Optional deductions: NPS contributions, health top-ups, loan repayments
- Typically represents 65% to 90% of CTC depending on your income tax bracket
Gross Salary = CTC − Employer PF − Gratuity − Other Employer RetiralsNet In-Hand Salary = Gross Salary − Employee PF − Professional Tax − Income Tax (TDS) − Voluntary DeductionsWhat is Included in Cost to Company (CTC)?
Direct Answer:Cost to Company (CTC) is the entire annual amount an employer spends to hire and retain you. It combines direct cash paid to you (Basic pay, HRA, Special Allowance, and Bonuses) with indirect employer expenses that never enter your bank account directly (Employer EPF, Gratuity allocation, and corporate health insurance premiums).
| Component | Typical Share | Classification | Disbursed in Monthly Pay? |
|---|---|---|---|
| Basic Salary | 40% – 50% of CTC | Fixed core wage | Yes (subject to tax & PF) |
| House Rent Allowance (HRA) | 16% – 25% of CTC | Living allowance | Yes |
| Special Allowance | 15% – 25% of CTC | Balancing allowance | Yes (fully taxable) |
| Leave Travel Allowance (LTA) | 3% – 5% of CTC | Reimbursement / allowance | Yes (or claim-based) |
| Annual Bonus / Variable Pay | 5% – 20% of CTC | Performance linked | Paid annually or quarterly |
| Employer PF Contribution | ₹21,600/yr (or 12% basic) | Retirement benefit | Deposited to EPFO account |
| Gratuity Allocation | 4.81% of basic | Separation benefit | Paid upon exit (min 5 years) |
| Group Health Insurance | 0.5% – 1.5% of CTC | Corporate coverage | Policy premium paid by employer |
Key Salary Components Explained
Basic Salary
Direct Answer: Basic salary is the core, unbundled portion of your earnings (typically 40% to 50% of CTC) that serves as the legal calculation benchmark for EPF, Gratuity, and HRA benefits. Under Indian wage guidelines, it forms the base for statutory compliance.
House Rent Allowance (HRA)
Direct Answer: HRA is a living allowance eligible for tax exemption under the Old Tax Regime (the lowest of actual HRA received, 50%/40% of basic, or rent paid minus 10% of basic). Under the New Tax Regime, HRA is fully taxable without exemptions.
- Actual HRA received from your employer
- 50% of Basic salary for metro cities (Delhi, Mumbai, Kolkata, Chennai) or 40% for non-metros
- Actual rent paid minus 10% of Basic salary
Special Allowance
Direct Answer: Special allowance is a flexible balancing allowance added by employers to reach your total agreed gross compensation. It is 100% taxable with zero exemptions.
Provident Fund (EPF) Rules: Default Cap vs. Uncapped
Direct Answer: Employee PF is a mandatory 12% deduction from basic pay. Under statutory EPFO guidelines, it is legally capped at ₹1,800/month (12% of the ₹15,000 wage ceiling), although organizations may choose to deduct 12% on your entire uncapped basic salary. Both employer and employee contribute matching shares.
Professional Tax by State
Direct Answer: Professional Tax is a state-levied direct tax capped by the Indian Constitution at ₹2,500 annually (typically ₹200/month in Maharashtra and Karnataka, ₹150/month in West Bengal, and ₹0 in Delhi, Rajasthan, and UP).
| State | Monthly Rate | Annual Cap | Applicability Threshold |
|---|---|---|---|
| Maharashtra | ₹200 (₹300 in Feb) | ₹2,500 | Gross above ₹10,000/month |
| Karnataka | ₹200 | ₹2,400 | Gross above ₹15,000/month |
| West Bengal | ₹150 | ₹1,800 | Gross above ₹10,000/month |
| Telangana & Andhra Pradesh | ₹200 | ₹2,400 | Gross above ₹15,000/month |
| Tamil Nadu | ₹208 | ₹2,500 | Gross above ₹21,000/month |
| Gujarat | ₹200 | ₹2,400 | Gross above ₹12,000/month |
| Delhi, Rajasthan, UP | No professional tax levied | ||
New Tax Regime vs. Old Tax Regime (FY 2026–27)
Direct Answer: The New Tax Regime is the default tax structure featuring lower slab rates, a ₹75,000 standard deduction, and zero income tax for gross salaried earnings up to ₹12.75 Lakh (via Section 87A rebate). The Old Tax Regime provides a ₹50,000 standard deduction and allows tax exemptions for HRA, Section 80C (up to ₹1.5L), 80D, and home loan interest.
| Annual Taxable Income Slab | New Regime Tax Rate | Old Regime Tax Rate |
|---|---|---|
| Up to ₹3,00,000 | Nil | Nil (Up to ₹2.5 Lakh) |
| ₹3,00,001 – ₹7,00,000 | 5% | 5% (₹2.5L – ₹5 Lakh) |
| ₹7,00,001 – ₹10,00,000 | 10% | 20% (₹5L – ₹10 Lakh) |
| ₹10,00,001 – ₹12,00,000 | 15% | 20% |
| ₹12,00,001 – ₹15,00,000 | 20% | 30% (Above ₹10 Lakh) |
| Above ₹15,00,000 | 30% | 30% |
- New Regime: Salaried employees receive a standard deduction of ₹75,000. Under Section 87A, a tax rebate of up to ₹60,000 is available if total taxable income does not exceed ₹12,00,000. Combined with the ₹75,000 standard deduction, salaried individuals earning a gross salary of up to ₹12,75,000 effectively have zero income tax liability.
- Old Regime: Standard deduction is ₹50,000. Section 87A tax rebate of up to ₹12,500 applies if total taxable income does not exceed ₹5,00,000. Exemptions for HRA, 80C (up to ₹1.5L), 80D, and home loan interest remain active.
Salary Breakup Examples for Common CTC Levels
Quick Summary: A ₹5 Lakh CTC results in a net monthly in-hand pay of ₹37,867 (zero tax). A ₹10 Lakh CTC with 10% variable bonus yields ₹71,200/month regular take-home plus a ₹1 Lakh annual bonus (zero tax under Section 87A rebate).
Example 1: ₹5 Lakh CTC (Entry Level)
| Component | Monthly Rate | Annual Total |
| Basic Salary (50%) | ₹19,933 | ₹2,39,200 |
| HRA (40% of Basic) | ₹7,973 | ₹95,680 |
| Special Allowance | ₹11,960 | ₹1,43,520 |
| Monthly Gross Salary | ₹39,867 | ₹4,78,400 |
| Employer PF Contribution (Part of CTC) | ₹1,800 | ₹21,600 |
| Employee PF Deduction | −₹1,800 | −₹21,600 |
| Professional Tax | −₹200 | −₹2,400 |
| Income Tax TDS (New Regime FY 2026–27) | ₹0 | ₹0 (Rebate 87A) |
| Net In-Hand Take-Home | ₹37,867 | ₹4,54,400 |
Example 2: ₹10 Lakh CTC (Mid Level with 10% Variable Bonus)
| Component | Monthly Rate | Annual Total |
| Basic Salary (50% of regular gross) | ₹36,600 | ₹4,39,200 |
| HRA (40% of Basic) | ₹14,640 | ₹1,75,680 |
| Special Allowance | ₹21,960 | ₹2,63,520 |
| Annual Bonus (10% of CTC, paid separately) | ₹8,333 (amortized) | ₹1,00,000 |
| Regular Monthly Gross (Cash) | ₹73,200 | ₹8,78,400 |
| Employer PF Contribution (Part of CTC) | ₹1,800 | ₹21,600 |
| Employee PF Deduction | −₹1,800 | −₹21,600 |
| Professional Tax | −₹200 | −₹2,400 |
| Income Tax TDS (New Regime FY 2026–27) | ₹0 | ₹0 (Rebate 87A: Income ≤ ₹12L) |
| Regular Monthly In-Hand Pay | ₹71,200 | ₹9,54,400 (incl. bonus) |
Official Government Portals & Statutory Guidance
Explore Related Salary & Tax Calculators
Global Take-Home Pay & International Tax Benchmarks
Evaluating foreign job offers, overseas transfers, or remote compensation? Review our localized tax breakdowns to calculate your exact net pay after statutory withholdings:
Frequently Asked Questions
Direct Answer: CTC (Cost to Company) represents the total annual expenditure an employer bears for hiring you, including gross salary, employer PF, gratuity provisions, insurance, and performance bonuses. Your in-hand take-home salary is the net cash deposited into your bank account after deducting employee PF, professional tax, and income tax (TDS). As a benchmark, monthly take-home is usually 70% to 90% of CTC.
Direct Answer: In most Indian compensation structures, basic salary is set at 40% to 50% of annual CTC. A higher basic salary increases retirement savings because EPF and gratuity are tied to it, but it also increases taxable income since basic pay is fully taxable. Private corporate employers commonly benchmark basic salary at 50%.
Direct Answer: Gross salary is your total monthly earnings before any deductions, consisting of basic salary, HRA, special allowance, and other cash allowances. Net salary (take-home pay) is what you actually receive after subtracting employee PF contributions, state professional tax, and income tax TDS.
Direct Answer: Under statutory EPFO regulations, mandatory employee PF is 12% of basic salary, capped at the statutory wage limit of ₹15,000 per month (equal to a ₹1,800/month deduction). If your employer calculates PF on your full un-capped basic salary, your deduction will be 12% of that full basic amount. Both employer and employee contribute equally.
Direct Answer: Yes. If you live in a house you own, HRA is fully taxable as you incur no rental expenditure. HRA exemption under Section 10(13A) is strictly available to employees who live in rented accommodation and produce valid rent receipts. You may legally claim exemption by paying rent to parents if they declare that rental income on their tax return.
Direct Answer: The New Tax Regime is the default option and offers lower tax slab rates plus a ₹75,000 standard deduction. Under the Section 87A rebate for FY 2026–27 (up to ₹60,000 rebate on taxable income up to ₹12,00,000), salaried individuals earning up to ₹12.75 lakh gross incur zero income tax. The Old Tax Regime (with ₹50,000 standard deduction and ₹12,500 rebate up to ₹5 lakh) is generally beneficial only if your eligible deductions (HRA, 80C up to ₹1.5L, 80D, and home loan interest) exceed ₹4.5 lakh to ₹5.0 lakh annually.
Direct Answer: When an annual performance bonus is included in your CTC, that portion is retained and paid at the end of the appraisal cycle or financial quarter. This lowers your monthly cash in-hand salary compared to an offer where the entire CTC is distributed as fixed monthly earnings.
Standard Salary Structure
- Basic Salary: 40% – 50% of CTC
- HRA: 40% – 50% of Basic
- LTA: 5% – 10% of Basic
- Special Allowance: Balancing remainder
- Employee PF: 12% of Basic (capped at ₹1,800/mo or uncapped)
- Employer PF: 12% matching contribution
- Gratuity: ~4.81% of Basic (payable on exit)
Tax Planning Highlights
- Standard Deduction: ₹75,000 under New Regime; ₹50,000 under Old Regime
- Section 87A Rebate: Zero tax on taxable income up to ₹12L (gross up to ₹12.75L) under New Regime (rebate up to ₹60,000); zero tax up to ₹5L under Old Regime (rebate up to ₹12,500)
- Old Regime Deductions: Claim HRA with rent receipts; max Section 80C up to ₹1.5L; Section 80D up to ₹75K (self + senior parents); NPS up to ₹50K under 80CCD(1B)
- Home Loan: Deduct up to ₹2L interest under Section 24(b) in Old Regime
Two Salary Calculators Compared
CTC to In-Hand Calculator (This Page): Designed specifically for Indian employment contracts. Details Indian payslip heads (Basic, HRA, EPF, Professional Tax, Gratuity).
Salary After Tax Calculator: Designed for international salary comparisons, overseas job offers, and multi-country tax calculations (US, UK, Australia, Europe).