CTC to In-Hand Salary Calculator
Enter your annual CTC and instantly get your monthly take-home salary with full breakup — FY 2025-26
Metro: Delhi, Mumbai, Kolkata, Chennai (50% HRA). Non-metro: 40% HRA.
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Where your CTC actually goes each month
In-hand salary
The amount credited to your bank account after all deductions. Varies significantly by CTC level — at ₹5L CTC with zero tax, in-hand is ~72%. At ₹25L CTC, income tax drops it to ~60%.
Employee PF
Deducted from your salary but it's still your money — locked until retirement or job change. Earns 8.15% interest (FY 2024-25), tax-free if withdrawn after 5 years of continuous PF membership.
Income Tax TDS
Deducted monthly by your employer and deposited with the government. The exact percentage depends on your tax regime, deductions claimed, and CTC level. Check Form 16 and 26AS for the actual TDS amount.
The PF contribution you don't see is building real wealth
Your employer matches your 12% PF contribution with another 12% — that's 24% of basic salary going to your retirement fund every month. On a ₹50,000 basic, that's ₹12,000/month or ₹1.44 lakh/year. At 8.15% interest compounded annually, a 25-year-old contributing continuously will accumulate over ₹1.5 crore in PF by age 58. Many people underestimate PF because it's invisible — but it's often the largest wealth-building component of your salary.
Which tax regime gives you more take-home?
Your total deductions under the old regime (80C + 80D + HRA + home loan interest) are less than ₹3.75 lakh. Most employees under ₹15L CTC who don't pay high rent or have a home loan are better off with the new regime.
You have significant deductions — HRA exemption in a metro city, home loan interest under Section 24, full 80C utilization, NPS 80CCD(1B), and health insurance. Employees paying ₹25K+ rent in Mumbai or Delhi often save ₹40–80K more with the old regime.
Frequently Asked Questions
What is CTC and why is my in-hand salary lower?
CTC (Cost to Company) is the total annual expense your employer bears for you. Your in-hand salary is lower because deductions like Employee PF (12% of basic), Professional Tax (up to ₹2,400/year), and Income Tax TDS are subtracted. The employer also contributes PF on your behalf — this is part of CTC but never reaches your bank.
What is the zero-tax income limit in FY 2025-26?
Under the new tax regime, salaried employees with income up to ₹12.75 lakh pay zero tax. This includes the ₹75,000 standard deduction and ₹60,000 rebate under Section 87A. Income beyond ₹12.75L is taxed as per new regime slabs.
Which cities count as "metro" for HRA calculation?
Only Delhi, Mumbai, Kolkata, and Chennai are classified as metro cities under the Income Tax Act for HRA purposes. Bangalore, Hyderabad, Pune, and all other cities are non-metro, attracting 40% HRA (vs 50% for metro).
Is Professional Tax deductible?
Yes. Professional Tax paid is deductible under Section 16(iii) of the Income Tax Act under both old and new regimes. The maximum PT is ₹2,500 per year and varies by state — Maharashtra and Karnataka levy ₹200/month for salaries above ₹15,000.
How is this calculation different from the actual payslip?
This calculator uses a standard corporate salary structure (Basic: 40–50% of CTC, HRA: 40–50% of Basic). Actual breakup varies by employer. Use this for estimates — your actual payslip from HR is always the accurate figure.
Key Terms
CTC
Cost to Company — total annual package including salary + employer PF + all benefits.
Basic Salary
Core component, typically 40–50% of CTC. Basis for PF, HRA, and gratuity.
In-Hand Salary
Net monthly amount credited to bank after all deductions.
FOIR
Fixed Obligation to Income Ratio — used by banks to calculate loan eligibility.