CTC to In-Hand Salary Calculator

CTC is the total amount a company spends on an employee annually. It includes your gross salary, employer's PF contribution (12%), gratuity (4.81%), and any other benefits like medical insurance or meal vouchers. CTC ≠ In-hand salary.

In-Hand = CTC − Employer's PF − Gratuity − Employee's PF − Professional Tax − Income Tax (TDS). The difference between CTC and in-hand is typically 20–35%, depending on your tax slab, salary structure, and exemptions claimed.

The New Tax Regime (default from FY 2023-24) has lower slab rates but fewer exemptions. The Old Regime allows deductions like HRA, 80C (up to ₹1.5L), 80D, and standard deduction (₹50K). New regime is usually better for salaries below ₹7L; old regime is often better for higher salaries with significant investments.

Basic salary is typically 40–50% of CTC in Indian companies. A higher basic means more PF contribution and better gratuity, but also higher tax. Companies sometimes keep basic low to reduce employer PF liability, increasing special allowances instead.

No. Gratuity is an employer cost (4.81% of basic) included in CTC but NOT paid monthly. It's paid only when you leave the company after 5+ years of service. It should be excluded when calculating your monthly take-home pay.

Professional Tax is a state-level tax on salaried individuals. Not all states levy it. States that do include Karnataka (₹200/mo), Maharashtra (₹200/mo), West Bengal, Andhra Pradesh, etc. The maximum is ₹2,500 per year.