Salary Calculator
Convert CTC to in-hand salary with complete breakdown
How Salary Calculation Works
Your CTC (Cost to Company) includes all expenses your employer bears for you, including employer PF, gratuity, and benefits. Your in-hand salary is what remains after all deductions.
Salary Components
- Basic Pay: Usually 40-50% of CTC. PF and gratuity are calculated on this.
- HRA (House Rent Allowance): Usually 40-50% of Basic. Tax-exempt under certain conditions in Old Regime.
- Special Allowance: The remaining amount after Basic, HRA, and employer PF.
- PF (Provident Fund): 12% of Basic from both employee and employer. Employer PF is part of CTC.
- Professional Tax: State tax, max ₹2,500/year (₹200/month in most states).
New vs Old Tax Regime (2025-26)
New Regime Slabs:
Up to ₹4,00,000 — Nil
₹4,00,001 - ₹8,00,000 — 5%
₹8,00,001 - ₹12,00,000 — 10%
₹12,00,001 - ₹16,00,000 — 15%
₹16,00,001 - ₹20,00,000 — 20%
₹20,00,001 - ₹24,00,000 — 25%
Above ₹24,00,000 — 30%
Standard Deduction: ₹75,000 | Rebate u/s 87A up to ₹12,75,000 taxable income
Frequently Asked Questions
What is the difference between CTC and in-hand salary?
CTC includes all costs like employer PF, gratuity, insurance, etc. In-hand salary is what you actually receive after deducting employee PF, professional tax, and income tax from your gross salary.
How is PF calculated on salary?
PF is 12% of Basic salary. Both employee and employer contribute 12% each. For Basic salary above ₹15,000/month, PF contribution is capped at ₹1,800/month unless the employer opts for higher contribution.
What is Professional Tax?
Professional Tax is a state-level tax, maximum ₹2,500 per year. Not all states levy it. States like Maharashtra, Karnataka, and West Bengal charge it; Rajasthan and Delhi do not.
Which tax regime is better?
If your total deductions (80C, 80D, HRA, etc.) exceed ₹3-4 lakhs, Old Regime may save more tax. Otherwise, the New Regime with its lower rates and standard deduction of ₹75,000 is usually better.