Salary Calculator — CTC to In-Hand

Why in-hand salary is less than CTC

CTC (cost to company) includes everything your employer spends on you, some of which you never receive monthly:

CTC
 − employer's PF contribution
 − gratuity provision (≈ 4.81% of basic)
 = Gross salary
 − employee PF (12% of basic)
 − professional tax
 − income tax (TDS)
 = In-hand salary

For a ₹12 lakh CTC with basic at 50%: employer PF ₹72,000 and gratuity ₹28,860 come off first, leaving a gross of ₹10,99,140. After employee PF and professional tax — and no income tax under the new regime, because taxable income stays under ₹12 lakh — take-home is about ₹85,395 a month.

In-hand salary for common CTCs

New regime, basic 50% of CTC, PF on full basic, ₹2,400 professional tax:

What changes your take-home

• Basic pay share. PF and gratuity are percentages of basic. Under the new labour codes, basic + DA is expected to be at least half of pay for many employees, which raises PF and gratuity and lowers monthly take-home — but builds more retirement savings. See the EPF calculator.
• PF on the ₹15,000 ceiling. Some employers contribute only ₹1,800 a month each. That raises in-hand pay but shrinks your PF corpus.
• Tax regime. The calculator uses the new regime by default. Old-regime deductions can lower TDS if you have large HRA, home-loan or 80C claims — compare on the income tax calculator.
• Professional tax. A state tax of up to ₹2,500 a year; some states don't levy it.
• Variable pay and reimbursements are paid separately and are not included.

TDS on salary

Your employer deducts tax every month based on your estimated yearly income and the regime you declare, spread evenly across the year. If you have other income (interest, rent), declare it to your employer or pay advance tax to avoid interest.