How is take-home salary calculated from CTC in India?

Take-home = CTC − Employer PF − Gratuity provision − TDS − Employee PF − Professional Tax.

What is the difference between the old and new tax regime?

Old: lower base rates + major deductions (80C, 80D, HRA). New (default): higher standard deduction ₹75k, lower tax rates, no major deductions.

What are the current income tax slabs in India (FY 2025-26)?

New regime: 0% up to ₹3L, 5% ₹3-7L, 10% ₹7-10L, 15% ₹10-12L, 20% ₹12-15L, 30% above ₹15L. Rebate u/s 87A for income up to ₹7L (new) / ₹5L (old).

How is basic salary decided in CTC?

Companies typically set Basic at 40-50% of CTC. Higher basic = higher PF and gratuity, lower take-home.

Does this calculator handle Professional Tax per state?

Yes. Applies standard PT for common states. Delhi and Haryana have no PT.

Take-Home Salary Calculator India 2026

Your offer letter says ₹12,00,000 CTC. Your bank account sees closer to ₹81,000 a month. This calculator explains the gap. Enter your CTC, pick old or new regime, and get the actual in-hand figure with every deduction shown line by line. Runs in your browser. Nothing gets sent to a server.

What a take-home salary calculator actually does

CTC is the company's cost, not your pay. It includes employer PF, gratuity provision, ESI, and sometimes insurance. None of that lands in your account. A take-home calculator strips those out, applies income tax under the regime you choose, deducts employee PF and professional tax, and shows what's left. Most people use this before accepting an offer or when comparing two jobs where one shows CTC and the other shows monthly fixed pay.

The formula: CTC to gross to net

Three steps, in order:

CTC minus employer-only items = Gross salary. Employer PF (12% of basic), gratuity provision (4.81% of basic), and any group insurance premium come out here.
Gross minus exemptions = Taxable income. Standard deduction always. HRA, 80C, 80D, LTA only under the old regime.
Tax on taxable income = Annual tax. Add 4% health and education cess. Then subtract 87A rebate if eligible.

From there: Gross minus annual tax minus employee PF minus professional tax, divided by 12, gives your monthly in-hand.

What's inside a typical CTC breakup

Basic salary (40-50% of CTC). Drives PF, gratuity, and HRA calculations.
HRA (50% of basic in metros, 40% non-metro). Tax-exempt under old regime if you pay rent.
Special allowance: the balancing figure that brings gross to your offered number. Fully taxable.
LTA, food coupons, telephone reimbursements: smaller heads, sometimes tax-friendly.
Employer PF: 12% of basic, capped at ₹1,800/month if your employer uses the ₹15,000 wage cap.
Employee PF: another 12% from your side, deducted from gross.
ESI: applies only if monthly gross is up to ₹21,000. Employee 0.75%, employer 3.25%.
Gratuity provision: 4.81% of basic. Sits in CTC but reaches you only after 5 years of service.
Professional Tax: state-specific, capped at ₹2,500 per year. Karnataka, Maharashtra, Tamil Nadu, West Bengal levy it.
TDS: income tax your employer deducts every month based on annual projected income.

Old regime or new regime, FY 2025-26

Two regimes, your choice every financial year. The calculator runs both and shows the cheaper one.

New regime slabs

Up to ₹3,00,000: nil
₹3,00,001 to ₹7,00,000: 5%
₹7,00,001 to ₹10,00,000: 10%
₹10,00,001 to ₹12,00,000: 15%
₹12,00,001 to ₹15,00,000: 20%
Above ₹15,00,000: 30%

Standard deduction ₹75,000. Section 87A rebate up to ₹25,000 if total income is up to ₹7,00,000. No 80C, no HRA, no LTA.

Old regime slabs

Up to ₹2,50,000: nil
₹2,50,001 to ₹5,00,000: 5%
₹5,00,001 to ₹10,00,000: 20%
Above ₹10,00,000: 30%

Standard deduction ₹50,000. 80C up to ₹1,50,000, 80D ₹25,000 to ₹50,000, HRA exemption per Section 10(13A). Section 87A rebate up to ₹12,500 if income is up to ₹5,00,000. Health and education cess 4% applies in both regimes.

Worked example: ₹12,00,000 CTC

Take a software engineer in Bengaluru. CTC is ₹12,00,000. Here's how the breakup typically lands:

Basic (50% of CTC): ₹6,00,000
HRA (40% of basic): ₹2,40,000
Special allowance (balancing): ₹3,21,600
Employer PF: ₹72,000
Gratuity provision: ₹28,800

Gross taxable income = 12,00,000 minus 72,000 minus 28,800 = ₹10,99,200.

Employee PF: ₹72,000. Professional Tax (Karnataka): ₹2,500.

Under the new regime

Taxable income: 10,99,200 minus 75,000 standard deduction = ₹10,24,200
Tax: 5% on (7L minus 3L) is ₹20,000. 10% on (10L minus 7L) is ₹30,000. 15% on (10,24,200 minus 10L) is ₹3,600.
Tax before cess: ₹53,600
Cess at 4%: ₹2,144
Total annual tax: ₹55,744

Under the old regime

Assume you claim ₹1,50,000 under 80C (PF, ELSS, LIC) and your rent receipts support an HRA exemption of ₹2,00,000.

Taxable income: 10,99,200 minus 50,000 minus 1,50,000 minus 2,00,000 = ₹6,99,200
Tax: 5% on (5L minus 2.5L) is ₹12,500. 20% on (6,99,200 minus 5L) is ₹39,840.
Tax before cess: ₹52,340
Cess at 4%: ₹2,094
Total annual tax: ₹54,434

Monthly take-home

Using the new regime: 10,99,200 minus 55,744 minus 72,000 minus 2,500 = ₹9,68,956 per year, or roughly ₹80,746 per month. The old regime ends up about ₹110 a month better in this case because of the HRA and 80C usage. Run the numbers without those exemptions and the new regime usually wins.

Common questions

Why is my in-hand so much less than CTC?

Three reasons. Employer PF and gratuity sit in CTC but never reach you. Employee PF leaves your gross. Income tax and professional tax come out next. On a ₹12L CTC, expect roughly ₹9.6L to ₹9.7L cash for the year.

Should I pick old regime or new?

If you actually claim 80C in full, pay rent in a metro, and have a home loan, the old regime usually wins. With few deductions, the new regime is simpler and often cheaper. The calculator runs both.

Does this work for variable pay and bonus?

Yes. Enter your annual variable as a separate field. The calculator treats it as fully taxable in the year it's paid.

Do you store my salary data?

No. Everything runs in your browser. Close the tab and the numbers are gone. Nothing goes to a server.

What about the ₹15,000 PF wage cap?

Some employers cap PF at 12% of ₹15,000, or ₹1,800 a month. Your in-hand goes up but your retirement corpus shrinks. The calculator has a toggle for it.

From offer letter to actual payroll

Use the calculator above to sanity-check your offer or your payslip. If you're running payroll for a team and need this math automated every month with PF, ESI, TDS, and PT filings sorted, our payroll software for India handles the full compliance run. Free for 3 months. PF challans, ESI returns, Form 16, and Form 24Q all come out of the same engine.