"CTC" (Cost to Company) is one of India's most misunderstood salary concepts. It is not what you earn — it is what you cost your employer. Your actual in-hand salary after all deductions can be 20–35% lower than your CTC. Understanding this difference is critical for salary negotiation, budgeting, EMI planning, and tax optimization.
This guide walks through every component of an Indian salary slip, explains what gets deducted and why, and gives you a free interactive calculator to see your exact numbers instantly. Use our EMI calculator to check what home loan your in-hand salary can comfortably support, and the SIP calculator to plan how to invest your monthly savings.
Free In-Hand Salary Calculator — Calculate Instantly
Enter your CTC below to see your exact monthly take-home salary, full salary breakup, all deductions, and gratuity amount — all calculated instantly under both old and new tax regimes. No signup, no ads, 100% free.
The CTC to In-Hand Salary Formula Explained
Employer PF = ₹57,600 · Gratuity = ₹23,088 · Gross = ₹11,19,312
Employee PF = ₹57,600 · PT = ₹2,400 · TDS ≈ ₹47,000
In-hand ≈ ₹84,026/month — 30% less than CTC headline.
Every Component of an Indian Salary Slip Explained
Foundation of your salary. PF, gratuity, and HRA are all calculated as a percentage of basic. Higher basic = higher PF deduction but also better HRA exemption eligibility.
Fully taxable if you own your home. If you pay rent, claim HRA exemption under old regime — saves ₹50,000–₹2L in tax annually for metro residents.
Remaining CTC after all defined components. Fully taxable. Companies adjust this to reach the total CTC figure — no PF deduction on this component.
Exempt for actual travel costs twice in a 4-year block under old regime. Declared through HR annually. Paid as part of salary each month.
Mandatory for salaries with basic up to ₹15,000. Builds your EPF retirement corpus at ~8.15% interest. Goes to your account, not lost.
State government levy. Maharashtra, Karnataka, Tamil Nadu charge ₹200/month. Delhi, Haryana, Rajasthan: zero. Deductible from taxable income under old regime.
Employer deducts estimated annual tax ÷ 12 each month. Based on your declared regime and investment declarations submitted at year start.
Company's EPF contribution — goes to your account, not paid as salary. Included in CTC calculation, which is why CTC exceeds Gross Salary.
Accrues at 15 days basic per year. Paid after 5 years of service. Included in CTC but you won't receive it if you leave before 5 years.
In-Hand Salary for All CTC Brackets — India 2026
Approximate monthly take-home under the new tax regime, assuming basic = 40% of CTC, Maharashtra professional tax. Use the calculator above for your exact state and regime.
| Annual CTC | Gross/Month | PF/Month | TDS/Month | In-Hand/Month |
|---|---|---|---|---|
| ₹3 LPA | ₹22,500 | ₹1,440 | ₹0 | ₹20,660 |
| ₹5 LPA | ₹37,500 | ₹2,400 | ₹0 | ₹34,700 |
| ₹7 LPA | ₹52,500 | ₹3,360 | ₹0 | ₹48,740 |
| ₹10 LPA | ₹75,000 | ₹4,800 | ₹2,200 | ₹67,500 |
| ₹15 LPA | ₹1,12,500 | ₹7,200 | ₹6,800 | ₹97,900 |
| ₹20 LPA | ₹1,50,000 | ₹9,600 | ₹13,500 | ₹1,25,700 |
| ₹30 LPA | ₹2,25,000 | ₹14,400 | ₹29,000 | ₹1,80,400 |
* Approximate values. Enter your exact CTC in the calculator above for precise results.
Old Tax Regime vs New Tax Regime — Which Gives More In-Hand?
The new regime (default from FY 2024-25) has lower slab rates but no deductions. The old regime has higher rates but allows 80C, HRA, and home loan deductions. The calculator above lets you toggle between both and compare instantly.
🆕 New Tax Regime (Default)
📋 Old Tax Regime
5 Legal Ways to Increase Your Monthly In-Hand Salary
Frequently Asked Questions — In-Hand Salary India
How do I calculate my in-hand salary from CTC?
What percentage of CTC is in-hand salary?
Is PF deducted from in-hand salary?
What is professional tax and who pays it?
How much income tax is deducted from salary?
What is HRA and how does it reduce tax?
Which tax regime gives more in-hand salary?
Related Free Financial Tools
Calculate Your Exact In-Hand Salary Now
Use the free salary calculator at the top of this page. Enter your CTC, select your state and tax regime, and see your exact monthly take-home instantly — with full salary breakup and gratuity calculation included.
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