CTC to In-Hand Salary Calculator (FY 2026-27)
Enter your annual CTC and see what actually reaches your bank account each month, after provident fund, professional tax and income tax. Compare the old and new tax regimes side by side.
Updated for FY 2026-27 slabs and the ₹75,000 standard deduction
Default regime. ₹75,000 standard deduction, no 80C or HRA exemption.
Professional tax is a state levy capped at ₹2,500 a year. ₹200 a month is the most common figure, but check your state — Delhi and Haryana, for instance, do not charge it at all.
Monthly take-home
₹96,200
₹11,54,400 a year
Part of CTC, but not part of your gross salary
Deductions
No tax payable — the Section 87A rebate covers it
Salary structure
How CTC becomes take-home pay
Cost to company is the total annual amount your employer spends on employing you. It includes things you never see as cash — most obviously the employer's provident fund contribution, and sometimes gratuity provisioning or insurance premiums. Subtract those and you get your gross salary, the figure your payslip starts from.
From gross, three deductions are taken before the money reaches you: your own PF contribution, professional tax if your state levies it, and income tax deducted at source. What remains is your in-hand pay.
The structure behind the numbers
Most Indian salary structures start with Basic at 40–50% of CTC. House rent allowance is usually set at 50% of Basic in metro cities and 40% elsewhere. Provident fund is calculated on Basic. Whatever is left over after these components and the employer's contributions becomes special allowance, which is fully taxable and acts as the balancing figure.
The size of Basic matters more than people expect. A higher Basic means a larger PF deduction and therefore lower monthly cash, but a bigger retirement corpus and a higher gratuity entitlement later. A lower Basic does the opposite.
Income tax under the new regime
For FY 2026-27 the new regime charges nothing up to ₹4 lakh, then 5% to ₹8 lakh, 10% to ₹12 lakh, 15% to ₹16 lakh, 20% to ₹20 lakh, 25% to ₹24 lakh and 30% above that. The Section 87A rebate wipes out the liability entirely for taxable income up to ₹12 lakh. Add the ₹75,000 standard deduction and a salaried person earning up to ₹12.75 lakh pays no tax at all.
One thing worth understanding: the rebate is a cliff, not a taper. Cross ₹12 lakh of taxable income and you lose it completely, so a small raise near that boundary can cost more in tax than it adds in salary.
Frequently asked questions
- Why is my in-hand salary so much lower than my CTC?
- CTC is what the company spends on you, not what reaches your bank. The gap is mostly the employer's PF contribution, which is counted in CTC but never appears in your gross salary, followed by your own PF contribution, professional tax and income tax. On a ₹12 lakh CTC the difference is typically ₹1.5–2 lakh a year.
- Is employee PF part of CTC?
- Your own PF contribution comes out of your gross salary — it is already inside your Basic, so it should not be added to CTC a second time. Only the employer's contribution is a genuine extra cost to the company. Some salary structures double-count it, which quietly understates your take-home by the PF amount.
- How much salary is tax-free in FY 2026-27?
- Under the new regime a salaried person pays no income tax up to ₹12.75 lakh. That is the ₹12 lakh rebate ceiling under Section 87A plus the ₹75,000 standard deduction. Past that point the rebate disappears and tax is charged on the full taxable income, not just the excess.
- Should I pick the old regime or the new one?
- The new regime is the default and wins for most people, because the slabs are wider and the standard deduction is larger. The old regime only comes out ahead if you claim substantial deductions — typically a full ₹1.5 lakh under 80C, plus HRA, home loan interest and 80D together. Switch the toggle above to compare both on your own numbers.
- How is PF calculated?
- Both you and your employer contribute 12% of Basic plus dearness allowance. The statutory wage ceiling is ₹15,000 a month, so where an employer applies the ceiling the contribution caps at ₹1,800 each. Many employers instead contribute on full Basic, which increases both the deduction and the retirement corpus.
- When does ESI apply?
- ESI applies while gross wages are ₹21,000 a month or less. The employee contributes 0.75% and the employer 3.25%. Above that threshold neither contribution is payable, and the calculator drops it automatically.
Related free tools
- Salary Slip Generator
Create a professional salary slip with earnings, deductions and net pay, and download it as a PDF.
- Gratuity Calculator
Calculate gratuity from your last drawn salary and years of service, including the tax-free limit.
- HRA Exemption Calculator
Find the tax-free portion of your House Rent Allowance from your salary, rent paid and city.
Paying a team, not just working out your own salary?
Smart Dhandha turns this calculation into a payroll run — salary structures per employee, payslips generated monthly, PF and TDS tracked for filing, and salary revisions kept as history rather than overwritten.
- Salary structures and revisions per employee
- Monthly payslips and payroll runs
- PF, professional tax and TDS ready for filing
This tool is provided free for general guidance and uses the rates noted above. Statutory rates change, and individual circumstances differ — please confirm with your accountant or a qualified professional before relying on these figures for filing or payroll.