Salary / CTC to In-Hand Calculator (FY 2026-27)
Convert your CTC to monthly take-home. Full breakup of basic, HRA, EPF, gratuity, special allowance and income tax — old vs new regime auto-compared so you pick the regime that gives you the most cash in hand.
Enter your CTC structure
📊 Show full CTC breakup + tax computation
| CTC component | Annual ₹ |
|---|---|
| Basic salary | — |
| HRA | — |
| Bonus | — |
| Employer EPF (12% of basic) | — |
| Gratuity provision (4.81% of basic) | — |
| Special allowance / other (residual) | — |
| Total CTC | — |
| Tax computation (new regime) | Annual ₹ |
|---|---|
| Gross salary (Basic + HRA + Bonus + Special) | — |
| Less: HRA exemption | — |
| Less: Standard deduction | — |
| Less: Section 80C (assumed full ₹1.5L if old regime) | — |
| Less: Professional tax | — |
| Taxable income | — |
| Income tax (slab rates + 4% cess, after 87A rebate) | — |
| In-hand calculation | Annual ₹ |
|---|---|
| Gross salary | — |
| Less: Income tax | — |
| Less: Employee EPF (12% of basic) | — |
| Less: Professional tax | — |
| Annual in-hand | — |
| Monthly in-hand | — |
CTC includes employer EPF + gratuity (which never reach your bank account). Employee EPF is deducted from gross — but it builds your retirement corpus.
How CTC becomes your in-hand salary
CTC is what your offer letter shows. In-hand is what hits your bank. The gap is real — and predictable once you know the components.
CTC = Basic + HRA + Bonus + Employer EPF + Gratuity + Special allowance
Gross salary = CTC − Employer EPF − Gratuity (these are CTC items but not part of taxable salary)
Taxable income = Gross − HRA exemption − Standard deduction − 80C − Professional tax
Annual in-hand = Gross − Income tax − Employee EPF − Professional tax
Monthly in-hand = Annual in-hand ÷ 12
The 6 standard CTC components
- Basic salary — the base on which EPF, gratuity, HRA and bonus are computed. Higher basic = higher retirement savings + bigger HRA exemption + slightly lower in-hand.
- HRA — usually 40-50% of basic. Tax-exempt (Section 10(13A)) under old regime if you pay rent. Fully taxable under new regime.
- Bonus — variable component. 8.33% of CTC = roughly 1 month’s pay. Fully taxable in both regimes.
- Employer EPF — 12% of basic. Part of CTC but goes directly to your EPF account. Doesn’t affect in-hand. Tax-free at maturity (above ₹2.5L/year contributions partially taxed since FY21-22).
- Gratuity provision — ~4.81% of basic accrued annually. Paid only after 5 years of service. Part of CTC but not in your monthly slip.
- Special allowance — the residual that balances the equation. Fully taxable.
The 3 monthly deductions that shrink your in-hand
Income tax (TDS): highest variable — depends on slab and regime choice. Employee EPF: 12% of basic, every month, mandatory. Compounds at EPFO interest rate (~8.25%). Professional tax: state-level, ₹200/month in PT states, ₹0 elsewhere. Total deduction is usually 15-25% of gross for mid-career salaries.
The math on a real example
Software engineer, Bengaluru (non-metro), ₹12 lakh CTC, basic 50%, HRA 50% of basic, ₹2.4L annual rent, new regime:
- Basic: ₹6,00,000 · HRA: ₹3,00,000 · Bonus (8.33%): ₹99,960
- Employer EPF (12% of basic): ₹72,000 · Gratuity (4.81%): ₹28,860
- Special allowance (residual): ₹99,180
- Gross taxable salary: ₹10,99,140 (Basic + HRA + Bonus + Special)
- Less standard deduction (₹75,000) — new regime: Taxable income = ₹10,24,140
- Income tax (new regime, with cess): ~₹62,510
- Employee EPF: ₹72,000 · Professional tax: ₹2,500
- Annual in-hand: ~₹9,62,130 · Monthly in-hand: ~₹80,177
For the same person under old regime (with full HRA exemption + ₹1.5L 80C), tax drops to ~₹54,000 — old regime wins by roughly ₹8,000/year in this case. The calculator above runs both for your inputs.
Old regime vs new regime — the decision tree
Pick new regime if: you don’t pay rent (no HRA exemption to claim), you can’t max out 80C/80D, you prefer simplicity. New regime is the default since FY 2023-24 — if you do nothing, your TDS uses new regime.
Pick old regime if: you pay rent ≥ ₹1.5L/year AND your basic is healthy AND you actively use 80C (EPF + ELSS + insurance) + 80D + home-loan interest. Old regime typically wins by ₹30k-₹2L/year for someone fully utilising deductions.
The calculator above simulates both regimes with your numbers and tells you the winner — re-run it after any salary change.
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Get the free book →Frequently asked questions
What is CTC and how is it different from in-hand salary?
CTC (Cost to Company) is the total annual amount the employer spends on you — basic, HRA, special allowance, employer’s EPF, gratuity, bonus, insurance, and other benefits. In-hand salary is what hits your bank — CTC minus income tax, employee EPF (12% of basic), professional tax, and other deductions. Gap is typically 20-30% for mid-to-senior salaries.
What is a typical Basic and HRA structure in Indian salary?
Most companies set Basic at 40-50% of CTC and HRA at 40-50% of Basic. Lower basic means lower employer EPF, lower gratuity, smaller HRA exemption — but higher take-home. Higher basic means more forced retirement savings + bigger HRA exemption — slightly lower monthly in-hand. The industry has settled around basic = 50% of CTC.
How is income tax calculated for FY 2026-27?
Two regimes. OLD: 0-2.5L (0%), 2.5-5L (5%), 5-10L (20%), 10L+ (30%). Standard deduction ₹50K. HRA + 80C (₹1.5L) + 80D + home-loan interest available. 87A rebate makes tax = 0 if taxable ≤ ₹5L. NEW: 0-3L (0%), 3-6L (5%), 6-9L (10%), 9-12L (15%), 12-15L (20%), 15L+ (30%). Standard deduction ₹75K. Most deductions disabled. 87A rebate makes tax = 0 if taxable ≤ ₹7L. Both add 4% cess.
Old regime or new regime — which one should I pick?
New regime is default since FY 2023-24 and wins for most salaried people without rent and without maxed 80C. Old regime wins when total deductions (HRA + 80C ₹1.5L + 80D + home-loan interest + NPS) exceed roughly ₹3.75L beyond new regime’s standard deduction. The calculator above runs both — it tells you the winner. Re-check yearly.
What is the standard deduction in salary tax?
A flat amount removed from gross salary before computing tax — no documentation, no proof, available to every salaried employee. Old regime: ₹50,000/year. New regime: ₹75,000/year (raised from ₹50K in Budget 2024). It replaces the older ₹19,200 transport + ₹15,000 medical reimbursements that existed before FY 2018-19.
What’s the difference between employer EPF and employee EPF?
Both are 12% of basic. Employer EPF is part of CTC but never reaches your bank — it lands directly in your EPF account. Doesn’t reduce your in-hand. Employee EPF is deducted from your gross salary every month — reduces in-hand by exactly that amount, but invests into your EPF account on your behalf. Together they build your retirement corpus, growing tax-free at the EPFO rate (~8.25%).
Why does professional tax vary by state?
Professional tax is a state tax, not central. Karnataka, Maharashtra, West Bengal, Tamil Nadu, Andhra Pradesh, Telangana, Gujarat charge it (max ₹2,500/year). Delhi, UP, Haryana, Rajasthan, Punjab and most northern states don’t levy it. The calculator defaults to ₹2,500 — switch to ₹0 for non-PT states.
How can I maximize my in-hand salary?
Four levers: (1) Pick the right regime — calculate both. (2) If old regime — max 80C (₹1.5L), 80D health insurance, fully use HRA. (3) Negotiate flexi-benefits — meal cards, fuel reimbursement, telephone — tax-free under old regime. (4) Push basic to 50% of CTC if it’s lower — boosts HRA exemption AND retirement corpus. Biggest hidden lever is choosing the regime correctly — can move take-home by ₹50k-₹2L/year.