Take-home Salary Calculator
Use this take-home salary calculator to convert your CTC (Cost to Company) into actual monthly in-hand salary after all statutory deductions — Provident Fund (PF), professional tax, income tax (TDS), and any other deductions specific to your employer. The calculator shows your gross monthly salary, all individual deductions, and the final amount that lands in your bank account each month.
The gap between CTC and take-home is often shocking for first-time job seekers. A ₹12 lakh CTC typically translates to ₹85,000-95,000 in hand each month — about ₹10-25,000 less than people expect. This in-hand salary calculator applies all FY 2026-27 rules under both the new and old tax regimes so you can compare which option gives you more take-home pay. Enter your salary structure (basic, HRA, allowances), your tax-saving investments and your city, and see your real monthly income.
How this calculator works
From CTC to take-home — the deduction stack
Your CTC is the total cost your employer incurs annually to employ you. It includes your in-hand salary plus several components you never see in your bank account: employer PF contribution, employer NPS contribution, gratuity provision, group medical insurance, statutory bonus, and sometimes training/L&D budget. To get from CTC to monthly take-home, subtract:
- Employer-side benefits (don't come to you): employer PF, gratuity, group insurance — typically 8-12% of CTC
- Employee-side mandatory deductions: employee PF (12% of basic), professional tax, income tax (TDS)
- Employee-side optional deductions: voluntary PF, NPS Tier-I beyond mandatory, employee insurance
Salary structure components
Basic Salary
Typically 35-50% of CTC. The basis for PF (12% of basic), gratuity (15/26 × basic × years), HRA exemption calculation, and most other statutory benefits. A higher basic means more PF and gratuity but lower in-hand right now.
House Rent Allowance (HRA)
Usually 40-50% of basic. Tax-exempt under Section 10(13A) in the old regime if you live on rent. The exemption is the lowest of: actual HRA, rent paid minus 10% of basic, or 50% of basic in metros (40% otherwise).
Special Allowance / Other Allowances
The flexible bucket — fully taxable but adjustable. Companies use this to fit individual CTC structures.
LTA (Leave Travel Allowance)
Tax-exempt twice in a 4-year block under Section 10(5) for travel within India. Bills required.
Conveyance / Telephone / Books
Smaller allowances, typically fully taxable in the new regime; some have specific exemption limits in the old regime.
Provident Fund (PF) deduction
The Employees' Provident Fund is mandatory for organisations with 20+ employees. Both employer and employee contribute 12% of basic salary (capped at ₹15,000 monthly basic for the statutory minimum, but most companies apply 12% on actual basic). The employee's 12% comes out of CTC and is invested at 8.25% (current rate) — earning you a long-term tax-free corpus, but reducing your immediate take-home.
Professional Tax (PT)
A state-level tax. Maharashtra: ₹200/month for ₹10K-₹15K monthly gross, ₹200 for above ₹15K. Karnataka: ₹200/month for above ₹15K basic. Tamil Nadu, Andhra Pradesh, Gujarat, West Bengal also charge similar. Some states (Delhi, UP, Punjab, Haryana) don't charge PT. The maximum PT in any state is capped at ₹2,500/year by Article 276(2) of the Constitution.
TDS on salary
Your employer estimates your annual tax liability based on the regime you've chosen and deducts roughly 1/12th each month as TDS. If you over-deducted, you claim a refund when filing ITR; under-deducted, you pay the balance. Rules change between new and old regimes — see the income tax calculators on Ganak for details.
Worked example
Example 1 — ₹12 lakh CTC, salaried employee in Bengaluru, new regime:
- CTC: ₹12,00,000 / year
- Less employer PF (12% of basic, basic = ₹4.8L): −₹57,600
- Less gratuity provision: −₹23,100
- Gross salary: ₹11,19,300 / year (₹93,275 / month)
- Less employee PF: −₹4,800/month
- Less professional tax: −₹200/month
- Less TDS on salary (new regime): ~₹0 (rebate applies)
- Monthly take-home: ~₹88,275
Example 2 — ₹20 lakh CTC, employee in Mumbai, old regime with full deductions:
- CTC: ₹20,00,000 / year (basic ₹8L, HRA ₹3.2L, special ₹6.5L, LTA ₹0.3L, others ₹2L)
- Less employer PF, gratuity, insurance: ~−₹1,50,000
- Gross salary: ₹18,50,000 / year (₹1,54,167 / month)
- Less employee PF (₹8,000/m), PT (₹200/m), TDS (calculated based on actual deductions)
- With 80C (₹1.5L), 80D (₹25K), HRA exemption (₹2.4L), 80CCD(1B) NPS (₹50K): annual TDS ~₹2,38,000 (₹19,833/m)
- Monthly take-home: ~₹1,26,134
Example 3 — ₹6 lakh CTC, employee in Chennai, new regime:
- CTC: ₹6,00,000 / year (basic ₹2.4L, HRA ₹0.96L, allowances ₹2.64L)
- Less employer PF, gratuity: ~−₹35,000
- Gross salary: ₹5,65,000 / year (₹47,083 / month)
- Less employee PF: ₹2,400/m, PT: ₹200/m, TDS: ~₹0 (well below ₹12L rebate threshold)
- Monthly take-home: ~₹44,483
Frequently asked questions
What is the difference between CTC and take-home?
CTC is the total annual cost to your employer, including amounts you never receive directly: employer PF, gratuity provision, group insurance premium, training budget. Take-home is what actually lands in your bank account after all deductions — typically 70-80% of CTC for entry-level employees and 65-75% for senior employees with higher tax brackets.
Why is my actual salary less than expected?
Three main reasons: (1) Employer-side components (PF, gratuity, insurance) reduce CTC by 8-12% before you ever see the money. (2) Mandatory deductions (employee PF, PT) reduce gross by 4-5%. (3) Income tax TDS can take another 5-25% depending on your bracket. The total gap between CTC and take-home is usually 20-35%.
Can I increase my take-home by reducing PF contribution?
Only the voluntary PF (VPF) contributions can be reduced. The mandatory 12% of basic salary is statutory — you cannot opt out unless your basic is at the ₹15,000/month statutory floor and your employer agrees to limit PF to that floor (rare for higher salaries). Reducing PF means losing the 8.25% tax-free compounding — usually a bad financial trade for short-term cash.
Is take-home different in different cities?
Yes, for two reasons: (1) Professional tax varies by state — Maharashtra and Karnataka charge ₹200/month; Delhi, UP and Punjab charge nothing. (2) HRA exemption (old regime) is 50% of basic in metros (Mumbai, Delhi, Kolkata, Chennai) and 40% in non-metros — so a Bengaluru employee paying the same rent as a Mumbai employee gets less HRA exemption. Same CTC can give 2-5% higher take-home in some cities than others.
Should I choose new or old regime for higher take-home?
Run both calculators with your actual deductions. Rule of thumb: if your combined deductions (80C ₹1.5L + 80CCD(1B) NPS ₹0.5L + 80D ₹25K + HRA + home loan interest) exceed ₹4 lakh, the old regime usually wins for income above ₹12 lakh. Below ₹12 lakh CTC, the new regime almost always wins because the ₹60K rebate makes it tax-free even without deductions.
What is the maximum professional tax I can pay?
₹2,500/year. Article 276(2) of the Indian Constitution caps PT at this amount across all states. Most states reach this cap with monthly deductions of ₹200 (₹2,400 for 12 months), though some collect ₹2,500 across 11 monthly deductions of ₹200 plus one of ₹300. PT is fully deductible under Section 16(iii) of the Income Tax Act in both regimes.
Why is my first-month take-home different?
Three common reasons: (1) Joining bonus or sign-on bonus paid in month 1 inflates that month's gross. (2) TDS in month 1 is often higher because the employer recalculates the full year's tax liability based on confirmed details. (3) Stock options, RSUs or ESPP grants vesting on joining are added to taxable salary. By month 3-4, take-home stabilises.
Do allowances like meal vouchers reduce take-home or increase it?
Meal vouchers (Sodexo, Ticket Restaurant) up to ₹50 per meal × 22 working days × 12 months = ₹13,200 are tax-free. Reimbursements (mobile bills, internet, fuel) up to actuals against bills are tax-free. They effectively increase your take-home by reducing taxable income. The new regime mostly removes these benefits, while the old regime preserves them.
How is take-home calculated for employees joining mid-year?
TDS is calculated on the projected annual income from the joining date to year-end. So if you join in October on a ₹12 lakh CTC, only 6 months of salary (₹6 lakh) counts for that financial year — the rebate would apply, making your TDS zero. From the next April, full-year calculations resume. Your in-hand for the joining year is often higher than later years on the same CTC.
Is signing bonus part of CTC and take-home?
Signing bonus is part of total compensation but typically excluded from monthly CTC structure. It is fully taxable in the year received. Most companies pay it lump-sum, sometimes with a 1-2 year clawback if you leave early. TDS at your applicable slab rate is deducted at payment. So a ₹2 lakh signing bonus in your 30% slab gives you about ₹1.4 lakh net.