In-Hand Salary Calculator India

CTC: The Number That Lies a Little

When a recruiter quotes you a package, they quote CTC — Cost to Company. It is the total annual amount your employer is willing to spend on you. The trap is that a meaningful slice of that number is spent on your behalf rather than paid to you. Two big line items live here: the employer's 12% EPF contribution and the gratuity provision of 4.81% of basic salary. Neither lands in your account each month, yet both inflate the headline figure.

Calcuva's In-Hand Salary Calculator India strips CTC down to the rupee you actually spend, so you can negotiate offers and plan your budget on reality, not marketing.

The Four Stops Between CTC and Cash

Money flows through four checkpoints before it becomes spendable:

1. CTC → Gross Salary — Subtract employer EPF and gratuity provisions.
2. Gross → Taxable Income — Subtract the ₹75,000 standard deduction.
3. Tax Computation — Apply New Regime slabs and the Section 87A rebate.
4. Gross → In-Hand — Subtract your own EPF, professional tax and income tax.

A Full INR Worked Example

Let us run a ₹12,00,000 CTC with Basic at 45%.

• Basic salary = 45% of ₹12,00,000 = ₹5,40,000
• Employer EPF = 12% of Basic = ₹64,800 (inside CTC, not paid to you)
• Gratuity provision = 4.81% of Basic = ₹25,974 (inside CTC, not paid to you)
• Gross salary = ₹12,00,000 − ₹64,800 − ₹25,974 = ₹11,09,226

Now the deductions from gross:

• Standard deduction = ₹75,000 → Taxable income = ₹11,09,226 − ₹75,000 = ₹10,34,226
• Because taxable income is below ₹12,00,000, the Section 87A rebate wipes the tax to ₹0.
• Employee EPF = 12% of Basic = ₹64,800
• Professional tax = ₹2,400

Total deductions = ₹0 + ₹64,800 + ₹2,400 = ₹67,200

Annual in-hand = ₹11,09,226 − ₹67,200 = ₹10,42,026, which is roughly ₹86,800 per month.

Notice the gap: a ₹12 lakh CTC delivers about ₹10.4 lakh in your hand — a take-home ratio near 87% in this rebate-protected band. Push CTC past the rebate threshold and income tax reappears, bending that ratio downward.

Why Basic Percentage Matters More Than You Think

A higher Basic raises both your EPF and your gratuity. That trims this month's cash but quietly builds a tax-free retirement corpus. Many Indians funnel that forced EPF saving — together with voluntary schemes like the PPF calculator — into a long-term wealth engine. If you would rather direct surplus cash into market-linked growth instead, model it with the SIP calculator and compare the trade-off between liquidity today and compounding tomorrow.

The New Regime's Quiet Generosity

For FY 2025-26, the New Regime is the default. Its appeal is structural: a clean ₹75,000 standard deduction, progressive slabs starting only above ₹4 lakh, and the Section 87A rebate that zeroes tax up to ₹12 lakh taxable income. The catch is that it disallows most old deductions — your EPF, life insurance and 80C investments no longer shrink your taxable income. For high earners with heavy 80C and home-loan interest, the Old Regime can still win, so it is worth comparing both.

Read Your Payslip Like a Pro

A real payslip adds layers this estimate keeps simple — HRA, special allowances, LTA, NPS and insurance premiums. The mechanics, though, never change: identify what is genuinely paid to you, separate it from what is paid for you, then subtract your statutory deductions.

These figures are indicative estimates built on standard assumptions. Before signing an offer or planning a big purchase, confirm the exact breakup with your HR team or a qualified CA.