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Calculate your in-hand salary in seconds

Convert CTC to monthly take-home salary and compare India's old and new tax regimes.

12 lakh per year

Or pick a common CTC

Tax rules for FY 2026-27 · last updated 3 October 2026. Calculations are estimates. Actual salary may vary based on employer payroll structure, exemptions, deductions and state-specific rules.

How in-hand salary is calculated

Your CTC includes components that may not be paid as monthly cash. Here's a ₹12 lakh CTC, step by step.
  1. Step 1Start with your CTCEverything your employer spends on you in a year.₹12,00,000
  2. Step 2Remove employer PF and gratuityEmployer PF (₹21,600) goes to your PF account and gratuity (₹28,846) is paid only after five years. What's left is gross salary.₹11,49,554
  3. Step 3Subtract employee PF and professional taxYour own PF contribution (₹21,600) and state professional tax (₹2,500).− ₹24,100
  4. Step 4Subtract income taxWorked out on taxable income after the standard deduction, using the slabs of the regime you choose. Here, the new regime gives ₹0.− ₹0
  5. Step 5Divide by 12That's your estimated monthly in-hand salary.₹93,788/month

Old vs new tax regime

The new regime has lower rates but few deductions. The old regime has higher rates but lets you claim 80C, HRA and more. Compare them in detail.
Old and new regime rules for FY 2026-27
FY 2026-27Old regimeNew regime
Nil-tax slabUp to ₹2,50,000Up to ₹4,00,000
Standard deduction (salaried)₹50,000₹75,000
Rebate — no tax if taxable income is up to₹5,00,000₹12,00,000
Highest slab rate30%30%
80C, 80D, NPS 80CCD(1B), home loanAllowedNot allowed
HRA exemptionAllowedNot allowed
Highest surcharge37%25%

Frequently asked questions

What is the difference between CTC and in-hand salary?

CTC (cost to company) is everything your employer spends on you in a year, including employer PF and gratuity that you don't receive as monthly cash. In-hand salary is what reaches your bank account after employee PF, professional tax, income tax and other deductions.

How is monthly in-hand salary calculated?

Start with CTC, remove employer PF and gratuity to get gross salary, then subtract employee PF, professional tax and income tax. Divide what remains by 12. Variable pay is usually paid separately, so this calculator keeps it out of the monthly figure.

Which income tax regime applies by default in FY 2026-27?

The new regime is the default. You can choose the old regime if you want to claim deductions such as 80C, HRA exemption and home-loan interest. Compare both before deciding.

Does PF reduce my in-hand salary?

Yes. Employee PF (usually 12% of basic) is deducted from your salary every month. Employer PF is part of CTC but goes to your PF account, so it never appears in your bank either. Both remain your savings.

Why is my payslip different from this estimate?

Employers structure salaries differently — basic percentage, allowances, PF on capped or full basic, meal cards and insurance all change the result. Adjust the salary structure in the calculator to match your offer letter or payslip.