This salary calculator converts your annual CTC into monthly take-home pay. It splits CTC into Basic, HRA, special allowance, employer PF and gratuity, then subtracts employee PF (12% of Basic), professional tax and income tax to show your in-hand salary. In-hand is typically 70%–80% of CTC. Under the new regime FY 2025-26, a CTC up to about ₹12.75 lakh pays ₹0 income tax (₹75,000 standard deduction + Section 87A rebate).
Take-Home Salary Calculator
Enter your annual CTC, pick the tax regime, and (for the old regime) add your 80C, 80D and HRA claims. The calculator shows monthly and annual in-hand pay plus a full component breakdown.
Actual take-home varies with your company's exact salary structure (Basic %, allowances, employer NPS, ESIC, variable pay). Use this as a close planning estimate — for a precise Form 16 / TDS projection, talk to a TaxClue expert.
How CTC Becomes In-Hand
CTC (Cost to Company) is the total annual cost your employer bears; in-hand is what lands in your bank each month. The two differ by the components you never receive (employer PF, gratuity) and the amounts deducted (employee PF, professional tax, TDS).
A common structure for a ₹12 lakh CTC (Basic taken as 40% of CTC):
| Component | % of CTC | Monthly (₹12L CTC) | Taxability |
|---|---|---|---|
| Basic Salary | 40% | ₹40,000 | Fully taxable |
| HRA (House Rent Allowance) | 20% | ₹20,000 | Partly exempt if rent paid (old regime) |
| Special / Performance Allowance | ~25.2% | ₹25,200 | Fully taxable |
| Employer PF (12% of Basic) | 4.8% | ₹4,800 | CTC component — not received |
| Gratuity Provision (4.81% basic) | ~1.9% | ₹1,603 | CTC component — not received |
| Total CTC | 100% | ₹1,00,000 | — |
Employee PF (12% of Basic) and ₹200/month professional tax are then deducted from gross to reach in-hand.
New Tax Regime Slabs (Default)
The new regime is the default from FY 2024-25. It has lower rates but drops most deductions (80C, 80D, HRA exemption). See the full income tax slabs comparison.
| Income Slab (after SD) | Rate | Tax on Slab |
|---|---|---|
| Up to ₹4,00,000 | 0% | ₹0 |
| ₹4,00,001 – ₹8,00,000 | 5% | ₹20,000 |
| ₹8,00,001 – ₹12,00,000 | 10% | ₹40,000 |
| ₹12,00,001 – ₹16,00,000 | 15% | ₹60,000 |
| ₹16,00,001 – ₹20,00,000 | 20% | ₹80,000 |
| ₹20,00,001 – ₹24,00,000 | 25% | ₹1,00,000 |
| Above ₹24,00,000 | 30% | On balance |
Plus ₹75,000 standard deduction · Section 87A rebate up to ₹60,000 (taxable income ≤ ₹12L after SD) · Health & Education Cess 4%. Net effect: salary up to ~₹12.75L CTC pays ₹0 tax.
The new regime usually wins for CTCs above ~₹15L or anyone with few investments. The old regime can still win if you fully use 80C (₹1.5L), 80D, HRA exemption and NPS. Toggle both in the calculator above to compare your exact figures.
5 Ways to Increase Take-Home Pay
- Pick the right regime — toggle both above and choose the lower tax
- Claim HRA exemption (old regime) by submitting rent receipts
- Max out 80C (₹1.5L), 80D health cover and the extra ₹50K NPS under 80CCD(1B)
- Restructure into tax-free allowances — LTA, meal card, phone/internet reimbursement
- Opt for employer NPS (up to 10% of Basic is deductible even in the new regime)
Want your salary structured for the lowest legal tax? Get a CA-led review.
Talk to a Tax Expert →Salary & Take-Home — FAQs
Related TaxClue services
Get Your Salary Taxed the Smart Way
From choosing the right regime to claiming every deduction and filing your ITR, TaxClue's CA-led team helps salaried professionals keep more of their pay — 100% online, across India.