Salary Calculator: In-Hand Pay from CTC
Your monthly take-home pay from your CTC: PF, gratuity, professional tax and income tax for tax year 2026-27, new or old regime.
On a CTC of ₹15 lakh with basic at half of CTC, take-home pay is about ₹1,00,309 a month under the new tax regime: ₹90,000 goes to your employer's PF and ₹36,058 to gratuity, and ₹90,000 of your own PF, ₹2,400 of professional tax and ₹77,835 of income tax come off the rest. In the new regime a salary up to ₹12.75 lakh pays no income tax.
The words on this page, explained simply
New to this? Here is what each term means, in plain English.
- CTC (cost to company)
- Everything your employer spends on you in a year: salary, their PF contribution, gratuity and sometimes insurance or bonuses. It is bigger than what reaches your bank account.
- Gross salary
- Your CTC minus the parts your employer keeps aside for you (their PF share and gratuity). Tax is worked out from this.
- Basic + DA
- Your basic salary plus dearness allowance: two lines on your payslip. PF is usually 12% of this, not of your full salary. Some employers cap it at the wage ceiling: 12% of ₹25,000, i.e. ₹3,000 a month, since 17 September 2026.
- Professional tax
- A small tax some states charge on salaries, at most ₹2,500 a year (about ₹200 a month). Your employer cuts it from your pay. Some states, such as Delhi, have none.
- New tax regime
- The default income tax system: lower rates and no tax up to ₹12 lakh of taxable income (₹12.75 lakh of salary), but almost no deductions such as 80C or HRA.
- Old tax regime
- The older income tax system that allows deductions and exemptions such as 80C and HRA, at higher tax rates. The new regime, the default, has lower rates but few deductions.
- Standard deduction
- A flat amount every salaried person can take off their salary before tax: ₹75,000 in the new regime, ₹50,000 in the old. No bills or proof needed.
- Rebate (section 156, was 87A)
- A tax discount that wipes out the tax for lower incomes: up to ₹60,000, so nobody with taxable income up to ₹12 lakh pays tax in the new regime (₹5 lakh in the old).
- Cess and surcharge
- Cess is an extra 4% added on top of income tax. Surcharge is extra tax for people with high incomes (above ₹50 lakh); on share profits it is at most 15%.
CTC (cost to company) is everything your employer spends on you in a year, including money you never see in your bank account each month. This calculator takes it apart: what goes to PF and gratuity, what comes off as tax, and what lands in your account.
From CTC to in-hand pay
1. Take out the employer's PF contribution (12% of basic) and gratuity (15 days' basic for each year of service, 4.81% of basic), if your offer letter includes them in CTC. What is left is your gross salary.
2. From the gross, take out your own PF contribution (another 12% of basic), professional tax (up to ₹2,500 a year, set by your state) and income tax. What is left is your in-hand pay.
Many employers stop PF at 12% of ₹15,000 (₹1,800 a month) when basic is higher: choose 'capped' in the calculator if yours does.
| CTC | Gross salary | Income tax (new regime) | In-hand a month |
|---|---|---|---|
| ₹6.00 lakh | ₹5,49,577 | ₹0 | ₹42,598 |
| ₹10.00 lakh | ₹9,15,962 | ₹0 | ₹71,130 |
| ₹15.00 lakh | ₹13,73,942 | ₹77,835 | ₹1,00,309 |
| ₹20.00 lakh | ₹18,31,923 | ₹1,57,440 | ₹1,29,340 |
| ₹30.00 lakh | ₹27,47,885 | ₹3,97,140 | ₹1,80,695 |
Basic at 50% of CTC, PF on the full basic, gratuity in CTC, professional tax ₹200 a month.
Income tax in tax year 2026-27
The Income-tax Act, 2025 took effect on 1 April 2026 and keeps the rates set in Budget 2025; Budget 2026 did not change them. The new regime (section 202) is the default: you get it unless you choose the old one.
| New regime: income | Rate |
|---|---|
| Up to ₹4 lakh | 0% |
| ₹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 deduct a ₹75,000 standard deduction first. A rebate (section 156, formerly 87A) of up to ₹60,000 wipes out the tax on taxable income up to ₹12 lakh, so a salary of ₹12.75 lakh pays nothing. Just above that, marginal relief caps the tax at the income above ₹12 lakh: on ₹12.75 lakh of taxable income the tax is ₹74,100, not the full slab tax.
The old regime has slabs of 0% to ₹2.5 lakh, 5% to ₹5 lakh, 20% to ₹10 lakh and 30% above, a ₹50,000 standard deduction and a rebate up to ₹5 lakh of taxable income, but allows deductions: section 80C (now 123) up to ₹1.5 lakh including your PF, health insurance, home-loan interest, HRA and professional tax.
Both add a 4% health and education cess, and a surcharge above ₹50 lakh (10%), ₹1 crore (15%) and ₹2 crore (25%; 37% above ₹5 crore in the old regime only), with marginal relief at each step.
| Salary (gross) | Tax, new regime | Tax, old regime (no deductions) |
|---|---|---|
| ₹7.00 lakh | ₹0 | ₹44,200 |
| ₹10.00 lakh | ₹0 | ₹1,06,600 |
| ₹12.75 lakh | ₹0 | ₹1,87,200 |
| ₹15.00 lakh | ₹97,500 | ₹2,57,400 |
| ₹20.00 lakh | ₹1,92,400 | ₹4,13,400 |
| ₹25.00 lakh | ₹3,19,800 | ₹5,69,400 |
| ₹50.00 lakh | ₹10,99,800 | ₹13,49,400 |
Which regime is better?
The old regime only wins if your deductions are large: 80C, health insurance, a home loan and HRA together. Enter yours under the old regime and compare the two in-hand figures. For HRA, work out the exempt part first with the HRA calculator and add it to the other deductions.
Key takeaways
- In-hand = CTC − employer PF − gratuity − your PF − professional tax − income tax.
- New regime 2026-27: no tax up to ₹12.75 lakh of salary; slabs 5% to 30% above ₹4 lakh.
- Standard deduction ₹75,000 (new) or ₹50,000 (old); 4% cess on the tax.
- The old regime only helps if your deductions are large.
Frequently asked questions
How is in-hand salary calculated from CTC?
Subtract the employer's PF and gratuity (if they are in your CTC) to get gross salary, then subtract your own PF, professional tax and income tax. Divide by 12 for the monthly figure.
How much tax on a ₹12 lakh salary?
None under the new regime: after the ₹75,000 standard deduction the taxable income is ₹11.25 lakh, and the section 156 rebate covers tax up to ₹12 lakh of taxable income.
What is the in-hand salary for 15 LPA?
About ₹1,00,309 a month under the new regime, with basic at half of CTC, PF on the full basic, gratuity in CTC and ₹200 a month professional tax.
Is professional tax deductible in the new regime?
No. It is deductible from salary only in the old regime. It is still taken from your pay in both.
Did Budget 2026 change the tax slabs?
No. Tax year 2026-27 uses the same slabs, rebate and standard deduction as 2025-26, now under the Income-tax Act, 2025.