NEW REGIME BENEFIT
Standard Deduction
₹75,000
TAX FREE LIMIT
Zero Tax Up To
₹7.75L
EPF CONTRIBUTION
Employer + Employee
24% of Basic

Affects HRA (50% vs 40% of Basic)

₹200/month in most states

Monthly Take Home

₹83,874

Earnings

Basic Salary₹50,000
House Rent Allowance (HRA)₹25,000
Special Allowance₹19,000
Gross Salary₹94,000

Deductions

Employee PF (12% of Basic)-₹6,000
Professional Tax (PT)-₹200
Income Tax (Est. New Regime)-₹3,926
Total Deductions-₹10,126
Note: Employer PF (₹6,000) is part of CTC but not paid to you. Tax uses the New Regime with ₹75,000 standard deduction.
How is In-Hand Salary Calculated?
The formula to convert CTC to Net Take-Home Pay involves stripping away employer benefits and personal taxes:
Gross Salary = CTC − Employer PF − Gratuity
In-Hand Salary = Gross Salary − Employee PF − Income Tax − Professional Tax

💡Understanding the Components

  • Employer PF: 12% of Basic. It is part of your CTC but goes straight to your retirement fund, not your bank account.
  • Employee PF: Another 12% of Basic deducted from your Gross Salary.
  • TDS (Tax Deducted at Source): Your HR department estimates your annual tax liability and deducts a portion every month.

What is CTC?

CTC (Cost to Company) is the total amount an employer spends on you annually, but it is not what you receive in your bank account. Your In-Hand (Take-Home) Salary is derived after subtracting the employer's contributions (like Employer PF and Gratuity) to get your Gross Salary, and then further deducting your personal taxes (TDS, Professional Tax) and Employee PF. Compare your tax liability using our Income Tax Calculator to optimize your take-home pay.

How This Calculator Helps

This calculator helps you decode your job offer letter. By knowing your exact monthly take-home pay, you can budget your rent, plan your EMI using our EMI Calculator, and ensure you are negotiating the right CTC during job transitions.

Typical Salary Breakup (as % of CTC)

Component% of CTCPurpose
Basic Salary40–50%Base pay, used for PF & HRA
HRA15–25%House Rent Allowance
Special Allowance10–20%Flexible component
Employer PF12% of BasicRetirement contribution
Gratuity4.81%Long-term benefit

New Tax Regime Slabs 2026

Taxable IncomeTax Rate
₹0 – ₹3,00,0000%
₹3,00,001 – ₹6,00,0005%
₹6,00,001 – ₹9,00,00010%
₹9,00,001 – ₹12,00,00015%
₹12,00,001 – ₹15,00,00020%
Above ₹15,00,00030%

+ ₹75,000 Standard Deduction • Rebate u/s 87A up to ₹7.75 Lakh taxable income

Real Examples (April 2026)

₹8 Lakh CTC
₹54,200 / month in-hand
₹12 Lakh CTC
₹79,800 / month in-hand
₹20 Lakh CTC
₹1,28,500 / month in-hand

Professional Tax by State (2026)

StateMonthlyAnnual
Maharashtra₹200₹2,400
Karnataka₹200₹2,400
Tamil Nadu₹200₹2,400
West Bengal₹200₹2,400
Others₹0 – ₹208Varies

Related Tax & Salary Tools

Frequently Asked Questions

CTC (Cost to Company) is the total amount a company spends on an employee, including Employer PF, gratuity, and insurance. In-Hand (Take Home) salary is what you actually receive in your bank account after deducting Employer PF, Employee PF, Income Tax (TDS), and Professional Tax.

Fincado Research Team

Fact Checked

Written and verified by ex-bankers, Chartered Accountants & RBI experts with 12+ years of experience. Every rate and fee is cross-checked against real borrower approvals and official lender disclosures.

Disclaimer: Fincado provides financial calculators and educational content for informational purposes only. We are not SEBI registered investment advisors. Always consult a certified financial planner before making any loan or investment decision.

Last Reviewed: Apr 2026
Methodology: Data-Driven
Editorial Guidelines