How to Use the CTC to In-Hand Calculator
Enter your annual CTC and adjust the basic salary percentage (default 40%). The calculator derives HRA, PF, gratuity, and computes in-hand salary under both new and old tax regimes. It automatically recommends the better regime.
CTC to In-Hand Calculator Formula
In-Hand = (Gross − Employee PF − Prof. Tax − Annual Tax) ÷ 12Gross= CTC minus employer PF and gratuityEmployee PF= min(Basic × 12%, ₹21,600/year)Gratuity= Basic × 4.81%
Example Calculation
CTC = ₹12 lakh, basic 40%, new tax regime:
Basic=₹4.8L; Employer PF=₹21,600; Gratuity=₹23,088; Gross=₹9,55,312; Employee PF=₹21,600; PT=₹2,400; Taxable=₹9,31,312; New regime tax≈₹0 (87A rebate for ≤₹12L)
Monthly in-hand ≈ ₹77,609
Frequently Asked Questions
What is CTC and how does it differ from in-hand salary?
CTC (Cost to Company) is the total annual expense an employer incurs for an employee. In-hand salary is what you actually receive monthly after deducting PF, gratuity, TDS, and professional tax. In-hand is typically 65–80% of CTC.
How is professional tax calculated?
Professional tax varies by state. Most states charge ₹200/month (₹2,400/year). Maharashtra charges ₹200/month for salaries above ₹10,000.
What is the zero tax limit under new regime FY 2025-26?
Under the new tax regime (IT Act 2025), individuals with total income up to ₹12 lakh pay zero income tax due to the enhanced Section 87A rebate of ₹60,000.