India CTC to In-Hand Salary Calculator (Tax Year 2026-27)

Your CTC, or cost to company, is what your employer spends on you in a year. It is not what reaches your bank account. Part of it is the employer's own PF contribution, part may be a gratuity provision you only get when you leave, and from what is left your employee PF, professional tax and income tax are deducted before you are paid.

This calculator walks that chain for an Indian salaried employee in Tax Year 2026-27, the first tax year under the Income-tax Act, 2025. You enter your CTC and the few structural facts from your offer letter, and it shows the gross salary, every deduction, the annual and monthly in-hand pay, and what you would take home under the other tax regime.

Every statutory piece comes from data the site already uses elsewhere: the EPF rates and wage ceiling from the EPFO contribution schedule, the gratuity formula from Section 53 of the Code on Social Security, 2020, the state professional tax schedules, and the same income tax engine behind the old vs new regime calculator.

1. Monthly basic. CTC × basic % ÷ 12. On ₹12,00,000 at 50%, that is ₹50,000 a month.
2. PF wage. If PF is on the ceiling, the PF wage is the lower of your monthly basic and ₹15,000. If PF is on full basic, it is your whole basic.
3. Employer PF. 12% of the PF wage, times 12. This is the employer's full 12%, including the part that goes to the pension scheme.
4. Employee PF. Also 12% of the PF wage, times 12. It is deducted from your salary and credited to your EPF account.
5. Gratuity provision. 15/26 of one month's basic, the amount one year of service adds under the Section 53 gratuity formula of the Code on Social Security, 2020.
6. Gross salary. CTC minus employer PF (if it is inside your CTC) minus the gratuity provision (if it is inside your CTC).
7. Professional tax. Your state's schedule applied to monthly gross salary, for the full year. Maharashtra and Karnataka charge ₹200 a month and ₹300 in February, ₹2,500 a year. Delhi, Uttar Pradesh and Haryana levy none.
8. Taxable income, new regime. Gross salary minus the ₹75,000 standard deduction. The new regime allows no deduction for professional tax or 80C.
9. Taxable income, old regime. Gross salary minus the ₹50,000 standard deduction, minus professional tax, minus 80C (your own PF plus any other 80C investments, capped at ₹1,50,000), minus any other deductions you enter.
10. Income tax. Slab tax for the regime, less the Section 156 rebate (nil tax up to ₹12 lakh of taxable income under the new regime, ₹5 lakh under the old, with marginal relief just above), plus surcharge where it applies, plus 4% health and education cess.
11. In-hand. Gross salary minus employee PF, professional tax and income tax. The monthly figure is that annual amount divided by 12.

A ₹12,00,000 CTC in Maharashtra, basic 50%, PF on the ₹15,000 ceiling, employer PF and gratuity both inside CTC, new regime.

Step 1: monthly basic. ₹12,00,000 × 50% ÷ 12 = ₹50,000

Step 2: PF on the ceiling. The PF wage is ₹15,000, so the employer pays 12% × ₹15,000 = ₹1,800 a month and you pay the same. Each side is ₹21,600 a year.

Step 3: gratuity provision. ₹50,000 × 15 ÷ 26 = ₹28,846.15 for the year.

Step 4: gross salary. ₹12,00,000 − ₹21,600 − ₹28,846.15 = ₹11,49,553.85, about ₹95,796 a month.

Step 5: professional tax. Maharashtra charges ₹200 a month and ₹300 in February on a salary at this level, ₹2,500 a year.

Step 6: taxable income. ₹11,49,553.85 − ₹75,000 standard deduction = ₹10,74,553.85

Step 7: income tax. Slab tax on ₹10,74,553.85 is about ₹47,455 (nil to ₹4 lakh, 5% to ₹8 lakh, 10% on the rest). Taxable income is under ₹12 lakh, so the rebate wipes it out. Tax is ₹0.

Step 8: in-hand. ₹11,49,553.85 − ₹21,600 − ₹2,500 − ₹0 = ₹11,25,453.85 a year, or ₹93,787.82 a month.

Step 9: the old regime for comparison. Taxable income becomes ₹11,49,553.85 − ₹50,000 − ₹2,500 − ₹21,600 (your PF under 80C) = ₹10,75,453.85. Tax with cess is ₹1,40,541.61, and in-hand falls to about ₹82,076 a month. Without large deductions such as HRA or home loan interest, the old regime loses badly at this salary.

Step 10: PF on full basic. If your employer runs PF on the full ₹50,000 basic, each side becomes ₹72,000 a year. Gross falls to ₹10,99,153.85 and in-hand to ₹85,387.82 a month. You are not poorer: the extra ₹50,400 a year of your own PF plus the same again from the employer is going into your EPF account instead of your bank.

Step 11: a higher salary. At ₹18 lakh CTC with the same structure, new-regime tax is ₹1,37,307.20 and in-hand is about ₹1,31,143.63 a month. Under the old regime with ₹1.5 lakh of other 80C investments and ₹2 lakh of HRA and other deductions, tax is ₹2,20,780.80 and in-hand is about ₹1,24,187.50, so the new regime still wins.

• Your exact salary structure. HRA, special allowance and other components only change the answer through the old-regime deductions you enter. The calculator does not work out your HRA exemption; the HRA exemption calculator does.
• Variable pay and bonuses. If part of your CTC is a performance bonus, it is treated here as if paid evenly through the year. If it is paid once, your monthly pay will be lower and the bonus month higher.
• Employer NPS, meal cards and other benefits. Not modelled. Employer NPS contributions can reduce taxable income in both regimes.
• Employer EDLI and admin charges. Some employers load these PF charges into CTC. Not modelled.
• Month-to-month variation. Professional tax is often higher in February, and TDS can change through the year when you submit investment proofs. The monthly figure is the annual in-hand divided by 12.
• Rounding. EPFO rounds PF contributions to the nearest rupee. The calculator keeps paise.
• Other income. Interest, rent and capital gains change your tax. Only salary is included.
• Senior citizen slabs. The old-regime slabs used are for a resident under 60. Senior citizens get a higher exemption limit under the old regime.

• Dividing CTC by 12. ₹12 lakh CTC is not ₹1 lakh a month. Even with zero income tax, PF, gratuity and professional tax take the monthly figure below ₹94,000 here.
• Counting gratuity as salary. In most cases it is paid only when you leave after five years of continuous service, so a CTC that includes it overstates what you will see each month.
• Forgetting PF is your money. The employee PF deduction lowers in-hand pay, but it goes into your own EPF account and earns interest.
• Assuming the old regime is better because it has deductions. At most salaries the new regime's lower slabs and ₹12 lakh rebate limit win unless your deductions are large. Check the comparison figure the calculator shows.
• Ignoring the PF basis in an offer. Two offers with the same CTC can have in-hand pay several thousand rupees a month apart purely because one runs PF on full basic.

• Income-tax Act, 2025 (No. 30 of 2025), Gazette of India Extraordinary, 21 August 2025: Section 19(1) Table Sl. No. 1 and 2 (professional tax and standard deduction of ₹75,000 new regime or ₹50,000 otherwise), Section 123 (₹1,50,000 deduction for provident fund and other Schedule XV sums), Section 156 (rebate up to ₹12 lakh under Section 202(1)), Section 202 (new regime slabs and excluded deductions): egazette.gov.in/WriteReadData/2025/265620.pdf
• Memorandum explaining the provisions of the Finance Bill 2026 (4% health and education cess and Tax Year 2026-27 rates): indiabudget.gov.in/doc/memo.pdf
• Employees' Provident Fund Organisation, Present Rates of Contribution (12% employee and employer, 8.33% EPS, ₹15,000 wage ceiling, rounding to the rupee): epfo.gov.in/wp-content/themes/epfo-child/assets/pdfs/ContributionRate.pdf

Also used, through the site's existing engine data: the Code on Social Security, 2020, Section 53(2) gratuity formula (which replaced Section 4(2) of the Payment of Gratuity Act, 1972 on 21 November 2025), and the state professional tax schedules documented on the professional tax calculator.