Salary In-Hand Calculator (CTC to Take-Home Salary) – India, FY 2026-27
Calculate your real monthly take-home salary from CTC, using current income tax slabs, PF, gratuity, and professional tax.
Why Your In-Hand Salary Is Lower Than Your CTC
The number on your offer letter — your CTC (Cost to Company) — is not what lands in your bank account every month, and the gap between the two confuses almost every first-time employee. That gap comes from four things: employer PF contribution (goes into your PF account, not your salary account), gratuity (a lump sum paid only after 5 years of continuous service), employee PF deduction and professional tax (deducted from your monthly pay), and finally income tax (deducted as TDS based on your tax slab).
This calculator breaks CTC down into each of these components separately, using the actual income tax slabs applicable for FY 2026-27, so the estimate reflects how salary is really structured in India rather than a flat guess.
How This Calculator Works
| Step | What Happens |
|---|---|
| 1. Basic Salary | Calculated as your chosen % of CTC (commonly 35–50%) |
| 2. Employer PF & Gratuity removed | These are part of CTC but never reach your salary account monthly |
| 3. Gross Salary (disbursed) | CTC minus employer PF, gratuity, and any other employer-side benefits |
| 4. Employee PF & Professional Tax deducted | Reduces your gross salary further |
| 5. Income Tax (TDS) calculated | Based on FY 2026-27 slabs under your selected regime, including standard deduction and Section 87A rebate |
| 6. Final In-Hand Salary | What's actually left — shown monthly and annually |
Income Tax Slabs Used (FY 2026-27 / AY 2027-28)
Budget 2026 made no changes to income tax slabs — the structure introduced in Budget 2025 continues to apply for FY 2026-27. This calculator uses these current, verified slabs:
New Tax Regime (Default)
| Taxable Income | Tax Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,000 – ₹8,00,000 | 5% |
| ₹8,00,000 – ₹12,00,000 | 10% |
| ₹12,00,000 – ₹16,00,000 | 15% |
| ₹16,00,000 – ₹20,00,000 | 20% |
| ₹20,00,000 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Standard deduction of ₹75,000 applies for salaried employees. Under Section 87A, tax is fully rebated (effectively zero) if taxable income is up to ₹12,00,000 — so gross salary up to roughly ₹12.75 lakh can mean zero income tax. A 4% health & education cess applies on top of any tax payable.
Old Tax Regime (Optional)
| Taxable Income | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,000 – ₹5,00,000 | 5% |
| ₹5,00,000 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Standard deduction of ₹50,000 applies, and Section 87A rebate applies (up to ₹12,500) if taxable income is up to ₹5,00,000. The old regime allows deductions like 80C (PPF, ELSS, employee PF itself), 80D (health insurance), and HRA exemption — enter your total eligible deductions in the field above if you choose this regime.
Worked Examples
| Annual CTC | Regime | Estimated Monthly In-Hand |
|---|---|---|
| ₹10,00,000 | New | ≈ ₹73,500 |
| ₹18,00,000 | New | ≈ ₹1,22,000 |
Calculated using default assumptions: 40% basic, 12% employer/employee PF, 4.81% gratuity, ₹200/month professional tax. Your actual figures will vary based on your employer's salary structure.
New vs Old Regime — Which Should You Pick?
| Situation | Regime Usually Better |
|---|---|
| Few investments in 80C, no HRA/home loan claims | New Regime — simpler, lower base rates |
| Significant 80C investments, HRA, and home loan interest | Old Regime — deductions can outweigh the rate difference |
| Income below ₹12.75 lakh with minimal deductions | New Regime — likely zero tax due to Section 87A rebate |
Since Budget 2025, the New Regime is the default option — you must actively choose the Old Regime while filing your return if it benefits you more. Run both scenarios in this calculator using your real numbers before deciding.
Why Use This Tool?
- Uses actual FY 2026-27 tax slabs, standard deduction, and Section 87A rebate — not a flat estimate
- Compares New vs Old regime in one click
- Accounts for employer PF and gratuity separately from take-home deductions
- Visual breakdown of where your CTC actually goes
- No login, no data storage — everything runs in your browser
Frequently Asked Questions
Why is my in-hand salary so much lower than my CTC?
Because CTC includes employer PF contribution and gratuity, which you don't receive monthly, plus your own PF deduction, professional tax, and income tax — all subtracted before the amount reaches your bank account.
Is gratuity part of my monthly salary?
No. Gratuity is a lump sum paid only when you leave the company after completing at least 5 years of continuous service — it accrues as part of CTC but isn't disbursed monthly.
Which regime gives a higher take-home salary?
It depends on your deductions. If you don't claim much under 80C, 80D, or HRA, the New Regime usually results in higher take-home due to lower base rates and the ₹12 lakh rebate threshold. If you have significant eligible deductions, the Old Regime can work out better — compare both using this tool.
Does this calculator account for surcharge on very high incomes?
No. Surcharge applies only above ₹50 lakh income and adds further complexity (with marginal relief rules); this tool is built for typical salaried income ranges. If your income exceeds ₹50 lakh, consult a chartered accountant for an exact figure.