In-Hand Salary Calculator — CTC to Monthly Take-Home (FY 2026-27)
"CTC ₹12 lakh" never means ₹1 lakh a month in your bank account. Employer PF and gratuity sit inside CTC but never reach your payslip; employee PF, professional tax and income tax (TDS) are deducted from what's left. This calculator unwraps the whole chain — updated for FY 2026-27, where the new regime's ₹60,000 rebate makes salaries up to ₹12.75 lakh effectively tax-free.
💼 CTC → In-Hand
Monthly in-hand
Annual in-hand
Of CTC reaches you
Assumes new tax regime (₹75,000 standard deduction, §87A rebate), employee PF at 12% of basic, professional tax ₹2,400/yr. Gratuity provision estimated at 4.81% of basic. Figures are indicative — exact structure varies by employer.
⚠️ Disclaimer: CalcSmart is not a tax, financial, legal or medical advisor. Calculators and content here are for general information only, compiled from publicly available rules and rates that change frequently. Always verify the accuracy and freshness of figures with official sources (e.g. incometax.gov.in, cbic.gov.in, your bank) or a qualified professional before acting on any result.
Where Your CTC Actually Goes
CTC (Cost to Company) is everything your employer spends on you — not what you receive. The typical chain:
Inside CTC but never in your bank: employer PF contribution (12% of basic) and gratuity provision (≈4.81% of basic). These are real money — PF lands in your EPF account, gratuity pays out after 5 years of service — but they don't show up monthly.
Deducted from your payslip: employee PF (another 12% of basic), professional tax (₹200/month in most states), and TDS — income tax deducted monthly based on your regime choice.
Variable pay: if 10–20% of your CTC is a performance bonus, your monthly in-hand is computed on the fixed portion only.
Quick Reference: CTC → Monthly In-Hand (FY 2026-27, New Regime)
Annual CTC
Approx. monthly in-hand
Income tax/yr
₹6 lakh
≈ ₹44,000
₹0
₹10 lakh
≈ ₹73,500
₹0
₹12 lakh
≈ ₹88,300
₹0
₹15 lakh
≈ ₹1,03,600
≈ ₹82,000
₹20 lakh
≈ ₹1,33,600
≈ ₹1,64,000
₹30 lakh
≈ ₹1,86,600
≈ ₹4,13,000
Assumes basic = 40% of CTC, gratuity inside CTC, no variable pay. Notice the jump between ₹12L and ₹15L: the §87A rebate disappears once taxable income crosses ₹12 lakh, so the first salary band above it feels the steepest change. Marginal relief smooths the transition right at the boundary.
💡 Negotiating an offer? Compare fixed CTC excluding gratuity and variable across companies — two "₹15 LPA" offers can differ by ₹8,000+ per month depending on structure.
Frequently Asked Questions
Roughly ₹89,000/month in FY 2026-27 under the new regime, assuming basic = 40% of CTC and gratuity inside CTC. Income tax is zero (taxable income stays under ₹12 lakh after the ₹75,000 standard deduction and §87A rebate); the deductions are employee PF (~₹4,800/mo) and professional tax.
Because CTC includes money you never see monthly: the employer's PF contribution (12% of basic) and a gratuity provision (~4.81% of basic). Then your payslip deducts your own PF (another 12% of basic), professional tax and TDS. Typically 75–85% of fixed CTC reaches your bank account at lower incomes; less at higher incomes where tax bites.
Yes — the new regime is the default. Your employer deducts TDS under it unless you explicitly opt for the old regime in your investment declaration. You can still switch at filing time.
A small state-level tax on employment, capped at ₹2,500/year (commonly ₹200/month). Maharashtra, Karnataka, West Bengal, Telangana and most large states levy it; Delhi, Haryana and UP don't. This calculator assumes ₹2,400/year.
Under the old regime, yes — your 12% contribution counts toward the ₹1.5 lakh 80C limit. Under the new regime (used by this calculator), employee PF gives no tax deduction, but the employer's contribution remains tax-free up to ₹7.5 lakh/year combined across PF/NPS/superannuation.