CTC vs in-hand salary
CTC (Cost to Company) is everything your employer spends on you in a year – basic, HRA, allowances, the employer's PF contribution, gratuity and sometimes a variable bonus. Your in-hand (take-home) salary is what actually reaches your bank account each month after deductions. That is why a ₹12 lakh CTC never means ₹1 lakh per month.
Deductions explained
- Provident Fund: 12% of basic from you and 12% from the employer. Some companies calculate PF only on the ₹15,000 statutory wage ceiling (₹1,800/month) – tick the box if yours does.
- Professional tax: a state tax of up to ₹2,500 per year (₹200/month in Maharashtra, Karnataka, West Bengal etc.). States like Delhi, UP, Haryana and Rajasthan do not charge it – enter 0.
- Income tax (TDS): calculated on taxable income after the standard deduction.
Income tax slabs FY 2026-27 (new regime)
| Taxable income | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4–8 lakh | 5% |
| ₹8–12 lakh | 10% |
| ₹12–16 lakh | 15% |
| ₹16–20 lakh | 20% |
| ₹20–24 lakh | 25% |
| Above ₹24 lakh | 30% |
Salaried people get a ₹75,000 standard deduction and a Section 87A rebate that makes tax zero up to ₹12 lakh taxable income (₹12.75 lakh gross salary). Just above ₹12 lakh, marginal relief ensures tax never exceeds the income above ₹12 lakh. 4% health & education cess is added on tax. The old regime has slabs of 0/5/20/30% with a ₹50,000 standard deduction and allows 80C (₹1.5 lakh), HRA, 80D and home-loan interest deductions.
Which regime is better?
For most salaried people earning up to about ₹15–16 lakh without a home loan, the new regime gives higher take-home. Agar aapke paas home loan interest, full 80C, high rent (HRA) aur health insurance hai, to old regime compare karke dekhiye – calculator dono regime ka monthly in-hand dikhata hai. Surcharge for very high incomes is applied without marginal relief, so treat results above ₹50 lakh as approximate. This is an estimate, not tax advice; your payslip may differ due to company-specific components.
Frequently asked questions (FAQ)
What is the in-hand salary for ₹12 lakh CTC?
With 40% basic, full 12% PF and ₹2,400 professional tax, the new regime gives about ₹90,200 per month and zero income tax for FY 2026-27.
Is income up to ₹12 lakh tax-free?
Under the new regime, taxable income up to ₹12 lakh has zero tax due to the 87A rebate. For salaried people that means gross salary up to ₹12.75 lakh after the ₹75,000 standard deduction.
Why is my in-hand much lower than CTC ÷ 12?
Because CTC includes employer PF, gratuity and variable pay which are not paid monthly, and your own PF, professional tax and TDS are deducted.
Basic salary kitna hota hai?
Aam taur par CTC ka 40–50%. New labour codes ke baad bahut companies basic ko 50% ke aas-paas rakh rahi hain, jisse PF badhta hai aur in-hand thoda kam hota hai.
Does this calculator include HRA exemption?
For the old regime you can enter your HRA exemption and other deductions in the 'other deductions' box. The new regime does not allow HRA exemption.