About the In-Hand Salary Calculator
This in-hand salary calculator converts a cost-to-company (CTC) offer into the salary that actually reaches your bank account every month. It removes the parts of CTC you never receive monthly — the employer’s EPF contribution and gratuity provision — and then deducts your own EPF contribution, professional tax and income tax.
Income tax is calculated for FY 2026-27 (tax year 2026-27 under the Income-tax Act, 2025, which applies from 1 April 2026 and kept the existing rates and limits) under either regime. The new regime uses the slabs introduced in Budget 2025 (nil up to ₹4 lakh, rising to 30% above ₹24 lakh) with a ₹75,000 standard deduction and a Section 87A rebate that makes income up to ₹12 lakh tax-free. The Budget 2026-27 memorandum confirms these rates are unchanged for tax year 2026-27. The old regime lets you claim Section 80C, HRA and other deductions with a ₹50,000 standard deduction. Surcharge and the 4% health and education cess are included. Section numbers (80C, 87A) are the 1961 Act numbers people still search for; the 2025 Act renumbers them but keeps the same limits.
Use it to compare job offers, negotiate a salary structure, or decide between the two tax regimes. It assumes a salaried resident individual under 60 with no other income; variable pay is treated as fully paid out during the year.
With the default inputs, the monthly in-hand salary is ₹100,299.39. Change any value above to recalculate instantly.
How to use the in-hand salary calculator
- 1Enter your annual CTC from the offer letter.
- 2Set basic salary as a percentage of CTC (check your salary structure).
- 3Choose how EPF is calculated and whether gratuity is part of CTC.
- 4Pick the tax regime; for the old regime enter 80C and other deductions.
- 5Read your monthly in-hand salary and compare regimes in the notes.
Formula and method
Basic salary is taken as a share of CTC. EPF is 12% of basic from both employer and employee (or 12% of the ₹15,000 wage ceiling, ₹1,800 a month, if your employer caps it). Gratuity is provisioned at 4.81% of basic (15/26 ÷ 12). Gross salary is CTC minus the employer EPF and gratuity; your own EPF and professional tax are then deducted from gross.
Taxable income in the new regime is gross minus the ₹75,000 standard deduction; the old regime also deducts professional tax, up to ₹1.5 lakh under 80C (including your EPF) and other exemptions you enter. Slab tax is reduced by the Section 87A rebate (₹60,000 new / ₹12,500 old), then surcharge applies above ₹50 lakh with marginal relief, and 4% cess is added.
- CTC
- Total annual cost to company
- EPF
- 12% of basic (employee and employer each)
- Gratuity
- 4.81% of basic set aside by the employer
- Cess
- 4% health and education cess on tax + surcharge
Worked examples
₹15 lakh CTC, new regime
Basic is ₹7.5 lakh, so employer EPF (₹90,000) and gratuity (₹36,075) leave gross salary of ₹13,73,925. After the ₹75,000 standard deduction, tax on ₹12,98,925 is ₹74,839 plus cess = ₹77,832. Deducting employee EPF and ₹2,500 professional tax leaves about ₹1,00,299 a month.
₹12 lakh CTC — zero tax under the new regime
Taxable income is ₹10,24,140, below the ₹12 lakh rebate limit, so income tax is nil. In-hand is gross minus ₹72,000 EPF and ₹2,500 professional tax: about ₹85,387 a month.
₹15 lakh CTC, old regime with full 80C
EPF ₹90,000 + ₹60,000 other investments fill the ₹1.5 lakh 80C limit. With the ₹50,000 standard deduction, professional tax and ₹50,000 other deductions, taxable income is ₹11,21,425 and tax with cess is ₹1,54,885 — the new regime is cheaper here.
₹25 lakh CTC with EPF capped at ₹1,800/month
Capping EPF at ₹21,600 a year raises gross salary to ₹24,18,275. Tax on ₹23,43,275 is ₹2,85,819 plus cess = ₹2,97,252, leaving about ₹1,74,744 a month.
Frequently asked questions
How is in-hand salary calculated from CTC?+
Subtract the employer’s EPF contribution and gratuity from CTC to get gross salary, then subtract your own EPF, professional tax and income tax (TDS). The remainder divided by 12 is your monthly in-hand salary.
Is income up to ₹12 lakh tax-free?+
Under the new regime, yes for salaried taxpayers with normal income: the Section 87A rebate of up to ₹60,000 wipes out tax on taxable income up to ₹12 lakh, and the ₹75,000 standard deduction takes gross salary up to ₹12.75 lakh tax-free.
Which is better, new or old tax regime?+
The new regime is usually better unless your deductions (80C, HRA, 80D, home-loan interest) are large. This calculator shows the tax difference between the two in the notes so you can choose.
Why is my in-hand salary much lower than CTC ÷ 12?+
CTC includes items you do not receive monthly — employer EPF, gratuity, insurance premiums and sometimes variable pay — and your own EPF, professional tax and income tax are deducted before salary is credited.
What is 4.81% gratuity in CTC?+
Gratuity is 15 days’ basic for each year of service, i.e. 15/26 of a month per year. Spread over 12 months this is 15 ÷ 26 ÷ 12 ≈ 4.81% of basic, which many employers include in CTC.
Is employer PF taxable?+
Employer contributions to EPF are tax-free as long as the combined employer contribution to EPF, NPS and superannuation stays within ₹7.5 lakh a year.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.