CTC to In-Hand Salary Calculator
Calculate your monthly in-hand salary from your CTC (Cost to Company) with all deductions.
Your total Cost to Company per year
Typically 40-50% of CTC
Typically 40-50% of basic salary
Varies by state — typically Rs. 200/month
PF Contribution (12% of Basic)
Employee PF deducted from salary
Monthly In-Hand Salary
₹85,739.27
Annual: ₹10,28,871.20
Gross Salary
₹11,42,400
Employee PF
₹57,600
Income Tax
₹53,528.80
Total Deductions
₹1,13,528.80
Salary Breakdown
Salary Distribution
- In-Hand Salary
- Income Tax
- Employee PF
- Professional Tax
Formula
In-Hand = Gross Salary - Employee PF - Professional Tax - Income Tax
- Gross Salary — CTC minus employer PF contribution
- Employee PF — 12% of basic salary deducted from salary
- Professional Tax — State-specific tax, max Rs. 2,500/year
- Income Tax — Calculated as per new tax regime slabs
What is CTC and In-Hand Salary?
CTC stands for Cost to Company — it is the total amount a company spends on an employee per year including salary, allowances, and employer contributions. In-hand salary (also called take-home salary) is the actual amount credited to your bank account every month after all deductions. There is often a significant difference between CTC and in-hand salary which confuses many employees especially when they receive a job offer.
The difference between CTC and in-hand salary comes from two types of deductions — employer contributions that are part of CTC but not paid to you directly (like employer PF), and employee deductions that are deducted from your gross salary (like employee PF, professional tax, and income tax).
Components of CTC
A typical CTC in India includes basic salary (usually 40-50% of CTC), House Rent Allowance or HRA (typically 40-50% of basic), special allowance or other allowances, employer contribution to Provident Fund (12% of basic), gratuity contribution, and sometimes medical allowance or food coupons. The basic salary is the most important component as PF, HRA, and gratuity are all calculated as a percentage of basic salary.
Deductions from Gross Salary
Your gross salary is CTC minus employer PF and gratuity. From your gross salary the following are deducted to arrive at your in-hand salary — employee PF contribution of 12% of basic salary, professional tax which varies by state and is typically Rs. 200 per month, and income tax calculated as per the applicable tax slab. Our CTC calculator uses the new tax regime by default for income tax calculation as it is now the default regime in India.
Understanding your salary structure helps you plan your finances better. For example knowing your basic salary helps you estimate your PF corpus at retirement and your HRA component helps you calculate HRA exemption if you live in rented accommodation. Use our HRA calculator to check how much HRA exemption you can claim while filing your ITR.