A ₹15 lakh CTC with 40% basic and the new tax regime gives about ₹1,11,326 a month in hand. That is ₹13,35,912 a year after PF, professional tax and ₹89,628 of income tax.
What this calculates
Enter your annual CTC and how it is structured, and this breaks it into basic, HRA, special allowance, employer PF and gratuity, then works out your take-home after your own PF, professional tax and income tax, month by month and for the year. The income tax is the same calculation as in the income tax calculator, so you can switch regimes and compare.
The formula
Special allowance
CTC − basic − HRA − employer PF − gratuityGross salary
basic + HRA + special allowanceIn hand
gross − employee PF − professional tax − income taxBasic is a percentage of CTC and HRA a percentage of basic. PF is 12% of basic, or of the wage ceiling if your employer takes it on that. Gratuity is 4.81% of basic, which is 15 days' pay for each 26-day month.
Worked example
At a CTC of ₹12 lakh the new regime charges no income tax, so the in-hand salary is about ₹94,276 a month.
When to use it, and the mistakes to avoid
Use it to compare job offers, to see what a raise is worth after tax, or to check a payslip.
The mistakes that cost the most:
- Reading CTC as take-home. Employer PF, gratuity, your own PF and tax all come out first.
- Guessing the PF basis. Whether PF is on the ceiling or the whole basic changes the take-home by thousands a month.
- Forgetting the old regime's deductions. If you pick the old regime, enter your HRA exemption, 80C and 80D, or the tax will be too high.
- Counting bonuses as monthly pay. Variable pay and reimbursements are not modelled.
- Treating the result as a payslip. Employers round and structure pay in their own ways.
FAQ
What is the difference between CTC and in-hand salary?
CTC is what you cost the company in a year: your salary plus the employer's PF and gratuity. In-hand salary is what reaches your bank account after your own PF, professional tax and income tax. The gap is usually 10% to 25% of the CTC.
Why is my in-hand salary lower than basic + HRA + allowances?
Your own 12% PF, professional tax and TDS on income tax are deducted before the salary is paid. The employer's PF and the gratuity are part of the CTC but are never paid to you as salary.
How is the special allowance worked out?
It is the balancing figure: CTC minus basic, HRA, employer PF and gratuity. Employers use it to make the components add up to the CTC. It is fully taxable.
Is PF taken on the whole basic or only on ₹15,000?
It depends on your employer. Many take 12% of the PF wage ceiling only, which is ₹1,800 a month at a ceiling of ₹15,000; others take 12% of the whole basic. Choose which applies to you. The ceiling is shown on the EPF calculator; check the latest EPFO notification.
Which tax regime does it use, and what about professional tax?
You choose the old or new regime, and the tax comes from the same engine as the income tax calculator for tax year 2026-27. Professional tax is set by your state and is at most ₹2,500 a year, so it is an input; enter 0 if your state has none.