CTC to In-hand Salary Calculator

How CTC is Broken Down in India

CTC (Cost to Company) is the total annual cost your employer absorbs for you. It is not the same as your salary. A typical Indian CTC breakdown:

• Basic salary — usually 30–50% of CTC. Drives EPF, HRA, gratuity
• HRA — 40% of basic (non-metro) or 50% (metro)
• Special allowance / flexible basket — remainder, fully taxable
• Employer PF — 12% of basic, included in CTC but you never see it
• Gratuity provision — 4.81% of basic, paid only after 5 years service
• Other benefits — group insurance, food coupons, etc.

Subtract employer PF + gratuity provision from CTC to get your real gross salary. Then deduct employee PF (12% of basic), Professional Tax and Income Tax to land on your in-hand.

New vs Old Regime — Which is Better?

New Regime (FY 2025-26): Standard deduction ₹75,000. Slabs: 0% up to ₹4L, 5% ₹4–8L, 10% ₹8–12L, 15% ₹12–16L, 20% ₹16–20L, 25% ₹20–24L, 30% above ₹24L. No deductions for 80C, HRA, LTA etc. Rebate under 87A up to taxable income ₹12L (tax = zero up to ₹12 L taxable).

Old Regime: Standard deduction ₹50,000. Slabs: 0% up to ₹2.5L, 5% ₹2.5–5L, 20% ₹5–10L, 30% above ₹10L. Allows 80C (₹1.5L), 80D, HRA, home loan interest and others.

Rule of thumb: If your total deductions (80C + HRA + others) exceed ₹3.75L per year, Old Regime usually wins. Under ₹2L of deductions, New Regime wins. Between those, run both.

Deductions Explained

Employee Provident Fund (EPF): 12% of basic salary, mandatory if basic > ₹15,000/month (or optional below). This goes to your EPF account — you get it back at retirement or job change.

Professional Tax: A state-level tax capped at ₹2,500 per year (~₹208/month). States like Delhi, Haryana, UP, Bihar have no PT.

Income Tax (TDS): Deducted monthly by employer based on projected annual income. If you have HRA / 80C benefits, submit proofs in Jan-Feb to reduce TDS for remaining months.