Tool
In-Hand Salary Calculator
Enter your CTC and deduction details to see your exact monthly take-home after PF, TDS, and professional tax for FY 2025-26.
How CTC differs from take-home salary
CTC (Cost to Company) is what your employer spends on you in total — not what reaches your bank account. Your in-hand salary is lower for three reasons: your employee PF contribution (12% of basic), income tax (TDS deducted at source), and professional tax. Additionally, the CTC itself includes employer-side costs — their 12% PF contribution and gratuity provision at 4.81% of basic — that are earmarked as your retirement savings, not your monthly pay.
On a ₹12 lakh CTC with 40% basic, your typical monthly take-home is ₹76,000–₹82,000 depending on regime and deductions. The gap of ₹18,000–₹24,000 per month accounts for PF, TDS, professional tax, and employer CTC components.
The formula
Employee PF = 12% of Basic (max ₹1,800/month)
HRA Exemption = min(HRA received, Rent − 10% of Basic, 50% / 40% of Basic)
TDS = Slab tax on (Gross − Std. Deduction − Exemptions − Deductions) + 4% Cess
Take-Home = Gross − Employee PF − TDS − Professional Tax (₹2,400/yr)
Basic = ₹4.8L/yr · HRA received = ₹2.4L/yr
Employer PF = ₹21,600/yr · Gratuity = ₹23,088/yr → Gross = ₹9.55L
Employee PF = ₹21,600/yr
HRA exemption = min(₹2.4L, ₹1.92L, ₹2.4L) = ₹1.92L
Old regime taxable = ₹9.55L − ₹50k − ₹21.6k − ₹1.92L − ₹1.5L − ₹25k = ₹5.33L → Tax ≈ ₹13,500
Monthly take-home ≈ ₹79,600/month
Why HRA exemption is your biggest lever
For a metro salaried employee paying ₹20,000/month rent with ₹40,000 basic, the HRA exemption under the old regime is ₹1.92 lakhs per year. At a 20% slab, that saves ₹38,400 annually — or ₹3,200/month in taxes. This one deduction alone often makes the old regime better. Under the new regime, no HRA exemption is available.
As per Section 10(13A) of the Income Tax Act, 1961 read with Rule 2A of the Income Tax Rules, HRA exemption is only available to salaried individuals in genuine rented accommodation. If you own a home in the same city where you work, the exemption is not available.
Employer PF — in your CTC, not your bank account
Your employer includes their 12% PF contribution in the CTC figure. This ₹21,600/year (at statutory ₹15,000 basic ceiling) goes directly to your EPFO account — not to your bank. According to EPFO's 2023-24 Annual Report, the fund manages assets for over 67 million active subscribers, making it India's largest mandatory retirement savings programme. It's still your money — just locked until age 58 or available partially on resignation after five continuous years.
Frequently Asked Questions
Which regime gives higher take-home salary?
For most salaried employees below ₹15L CTC with full 80C, HRA, and 80D, the old regime gives higher take-home because combined deductions substantially reduce taxable income. Above ₹20L CTC with few deductions, the new regime often wins due to lower slab rates. Use the "Auto" setting above — the calculator picks the better regime automatically.
Is EPF deduction mandatory?
Yes for employees earning ≤₹15,000/month basic. Above that threshold, PF is technically optional for the employee, though most employers continue deducting on actual basic salary. You can submit Form 11 to opt out if you were never an EPFO member — existing members cannot opt out.
What is professional tax?
Professional tax is a state-level levy deducted by employers. Most states (Maharashtra, Karnataka, West Bengal, etc.) charge ₹2,400/year (₹200/month). Delhi, Haryana, and a few others don't levy it. It is deductible from taxable income under the old regime as per Section 16(iii) of the Income Tax Act.
My offer letter says ₹12L but my take-home looks much lower — why?
CTC includes components that don't hit your bank monthly: employer PF (12% of basic), gratuity provision (4.81% of basic), sometimes medical insurance premiums, LTA, and a variable component paid quarterly or annually. Subtract all of these to get your gross salary, then deduct employee PF, TDS, and professional tax to reach your actual monthly take-home.