CTC to In-Hand Salary Calculator (India, FY 2026-27)

CTC (Cost to Company) is every rupee your employer spends to employ you annually — including employer PF, gratuity provision, insurance premiums, and all allowances. In-hand salary is what actually reaches your bank account each month after the employer PF (goes to EPFO, not your bank), your own 12% PF contribution, professional tax, and income tax (TDS) are all deducted. For a ₹12 lakh CTC, the monthly in-hand is typically around ₹90,000 in the new tax regime.

Three layers of deduction separate CTC from in-hand pay. First, the employer's PF contribution (12% of basic) sits inside CTC but flows directly to EPFO — not your bank account. Second, your own 12% PF contribution and professional tax come out of gross salary. Third — and largest — income tax is deducted as TDS every month. Together, these can reduce a ₹15 lakh CTC to roughly ₹1.05 lakh per month in-hand under the new regime.

For most salaried employees without large deduction claims, the new regime wins in FY 2026-27. Zero tax on taxable income up to ₹12 lakh (roughly ₹12.75 lakh salary after the ₹75,000 standard deduction) makes it the default choice. The old regime only beats it when your total deductions — HRA exemption, 80C, 80D, home-loan interest — are substantial. Use the regime toggle above: the calculator shows both in-hand figures simultaneously.

Yes. Under Section 87A of the Income Tax Act, taxable income up to ₹12 lakh is fully exempt from tax in the new regime for FY 2026-27. Since the new regime also provides a ₹75,000 standard deduction, a gross salary of up to approximately ₹12.75 lakh can result in zero income tax. Note: the ₹12 lakh limit refers to taxable income (after standard deduction), not gross or CTC.

Basic salary is the fixed core of your monthly pay — typically 40–50% of CTC. Both employer PF (12%) and employee PF (12%) are calculated on basic, as is gratuity (4.81%). HRA received is usually 40–50% of basic. A higher basic means more retirement savings but lower monthly take-home, because PF deductions are larger. A lower basic boosts take-home but reduces HRA eligibility in the old regime. Use the basic % slider above to match your actual payslip.

At the start of each financial year, your employer estimates your full-year tax liability based on your salary and the regime you declare. This annual tax is divided by 12 and deducted monthly as TDS. If you join mid-year or declare investments later (proofs submitted in January–February), your employer recalculates and adjusts future months. Submitting investment and HRA declarations to HR on time can meaningfully reduce your monthly TDS.

In most Indian companies, employer PF is included inside the CTC — not paid on top. This means your gross salary (what appears on your payslip before deductions) equals CTC minus employer PF. If your offer letter shows ₹12 lakh CTC with employer PF of ₹57,600, your gross salary is ₹11,42,400. Always confirm whether employer PF is 'in CTC' or 'in addition to CTC' before comparing two offers — it changes the comparison significantly.

The old regime beats the new regime when total deductions beyond the standard deduction are large. Key deductions: HRA exemption (if you rent a home), 80C up to ₹1.5 lakh (PF, ELSS, PPF, LIC), 80D up to ₹25,000 (health insurance), and home-loan interest under Section 24B (up to ₹2 lakh for self-occupied). If your combined deductions exceed roughly ₹3–3.5 lakh in addition to the standard deduction, the old regime may win. Enter your HRA, rent, and investment details in old-regime mode above to find your exact number.