Salary Calculator – CTC to In-Hand Salary Calculator

What is CTC and In-Hand Salary?

CTC (Cost to Company) is the total annual expense an employer incurs for an employee. It includes your basic salary, HRA, allowances, employer's PF contribution, and other benefits. In-hand salary — also called take-home or net salary — is the amount that actually gets credited to your bank account after all deductions.

Typical CTC Breakdown

• Basic Salary: The fixed core component — usually 40–50% of CTC. All other components are calculated as a percentage of basic.
• HRA (House Rent Allowance): Typically 40–50% of basic. Partially tax-exempt under the old regime.
• Other Allowances: Special allowances, LTA, food coupons, and other perks make up the remainder.
• Employer PF: 12% of basic paid by the employer into your EPF account — included in CTC but not in gross salary.

Key Deductions from Gross Salary

Employee PF

12% of your basic salary is deducted and credited to your EPF account. This builds your retirement corpus but reduces take-home pay.

Professional Tax

A state-level tax deducted from salary — ₹200/month (₹2,400/year) in most Indian states. Maximum ₹2,500/year.

Income Tax (New Regime)

Calculated on your gross salary minus the standard deduction (₹50,000). The new tax regime slabs for FY 2024-25: 0% up to ₹3L, 5% from ₹3–7L, 10% from ₹7–10L, 15% from ₹10–12L, 20% from ₹12–15L, 30% above ₹15L. Income up to ₹7L is effectively tax-free due to the rebate under Section 87A.

Frequently Asked Questions