Ask Veda

TaxClue AI · Active
Namaste! I'm Veda — TaxClue's AI assistant.

Ask me anything about GST, Income Tax, Company Registration, Trademark, or any compliance topic. I'll give you a direct answer.
Free Expert Consultation
Powered by TaxClue · India's Trusted Compliance Platform

Take-Home Salary Calculator India — CTC to In-Hand

Updated: 3 June 2026  •  FY 2026–27  |  New & Old Tax Regime

CTC vs In-Hand:
CTC = Basic + HRA + Special Allowance + Employer PF (12% of Basic) + Gratuity provision
In-Hand = CTC − Employer PF − Gratuity − Employee PF (12% of Basic) − Professional Tax − Income Tax (TDS)
Typical in-hand is 70%–80% of CTC. For a ₹12.75L CTC employee under the new regime with ₹75K standard deduction and ₹25K 87A rebate — income tax is ₹0.
₹12.75L CTC
₹12.75L CTC = ₹0 tax (new regime)
Under the new regime FY 2026–27: ₹75K standard deduction + ₹25K Section 87A rebate makes income up to ₹12.75L effectively tax-free. Calculate your exact in-hand below.

Take-Home Salary Calculator

How CTC Is Structured

Most Indian companies follow a standard salary structure. Here is how a typical ₹12L CTC breaks down:

Component % of CTC Monthly (₹12L CTC) Taxability
Basic Salary40%₹40,000Fully taxable
HRA (House Rent Allowance)20%₹20,000Partly exempt if rent paid
Special / Performance Allowance~25.2%₹25,200Fully taxable
Employer PF (12% of Basic)4.8%₹4,800CTC component, not received
Gratuity Provision (4.81% basic)~1.9%₹1,603CTC component, not received
Total CTC100%₹1,00,000

New Tax Regime Slabs FY 2026–27

The new tax regime is the default regime from FY 2024–25. It offers lower rates but most deductions (80C, 80D, HRA) are not available.

Income Slab Tax Rate Tax on Slab
Up to ₹4,00,0000%₹0
₹4,00,001 – ₹8,00,0005%₹20,000
₹8,00,001 – ₹12,00,00010%₹40,000
₹12,00,001 – ₹16,00,00015%₹60,000
₹16,00,001 – ₹20,00,00020%₹80,000
₹20,00,001 – ₹24,00,00025%₹1,00,000
Above ₹24,00,00030%On balance
+ Standard Deduction ₹75,000  |  Section 87A Rebate up to ₹25,000 (income ≤ ₹12L after SD)  |  Health & Education Cess 4%

Frequently Asked Questions

What is the difference between CTC and in-hand (take-home) salary?
CTC (Cost to Company) is the total annual expense the employer bears for an employee. It includes Basic salary, HRA, special allowances, employer's PF contribution (12% of basic), employer's ESIC, gratuity provision, and any other perquisites. In-hand salary is what you actually receive in your bank account each month. It equals: Basic + HRA + Special Allowance − Employee PF (12% of basic) − Professional Tax − Income Tax (TDS). The gap between CTC and in-hand is typically 20%–30% of CTC.
How is HRA (House Rent Allowance) calculated in the salary structure?
In a typical salary structure, HRA is set at 40%–50% of Basic salary (50% for metro cities — Delhi, Mumbai, Chennai, Kolkata; 40% for non-metros). However, HRA exemption (under Section 10(13A)) depends on the actual rent paid. The exemption is the least of: (1) Actual HRA received, (2) Rent paid minus 10% of Basic salary, (3) 50%/40% of Basic salary. If you live in your own house or don't pay rent, the entire HRA received is taxable.
What are the PF deduction rules for salary?
Under the Employees' Provident Fund Act, both employee and employer contribute 12% of Basic salary + DA each month to the EPF account. The employee's 12% is deducted from salary (reducing take-home). The employer's 12% is split: 8.33% goes to EPS (Employee Pension Scheme, capped at ₹1,250/month) and 3.67% goes to EPF. PF is mandatory if Basic salary is below ₹15,000/month. Above ₹15,000, the employee can opt out if not already a PF member. Voluntary PF above 12% also earns the same 8.1% p.a. tax-free interest.
How does the new tax regime affect take-home salary?
Under the new tax regime (default from FY 2024–25), income tax slabs are: 0% up to ₹4L, 5% on ₹4L–8L, 10% on ₹8L–12L, 15% on ₹12L–16L, 20% on ₹16L–20L, 25% on ₹20L–24L, and 30% above ₹24L. A standard deduction of ₹75,000 is available. Section 87A rebate of ₹25,000 makes income up to ₹12L effectively tax-free. The new regime has lower rates but most deductions (80C, 80D, HRA exemption) are not available. It is generally better for CTC above ₹15L or those with few investments.
How can I increase my take-home salary?
Five key strategies: (1) Switch to new tax regime if your taxable income after deductions is high — lower slab rates save more tax. (2) Restructure salary to maximise allowances like LTA, meal allowance (₹26,400/yr tax-free), phone/internet reimbursement. (3) Maximise 80C (₹1.5L), 80D (₹25K–50K), and NPS deduction (₹50K under 80CCD(1B)) under old regime. (4) Opt for company NPS contribution (employer's NPS up to 10% of basic is deductible). (5) Claim HRA exemption by submitting rent receipts if you live on rent.

Related Calculators & Tools