What is in-hand salary?

In-hand salary is the net take-home salary credited to your bank account every month after statutory deductions like EPF, Professional Tax, and Income Tax TDS.

How is in-hand salary calculated?

In-Hand Salary = Gross Salary − Employee PF − Professional Tax − Income Tax TDS. Gross salary is your CTC minus employer benefits (employer PF, NPS, and gratuity).

What is the difference between CTC and in-hand salary?

CTC (Cost to Company) represents the total annual budget allocated by the company for you, which includes benefits you do not receive monthly (employer retirement funds, insurance). In-hand is cash-in-hand paid monthly.

Yes. CTC typically includes both the Employer PF Contribution (12% of basic) and Employee PF Contribution (12% of basic).

Does employer PF reduce in-hand salary?

Employer PF does not reduce your gross pay directly, but since it is included in your CTC, it reduces the remaining pool available for cash components, thereby indirectly lowering your in-hand salary.

How much is 7 LPA in hand?

For a 7 LPA CTC in India under the New Tax Regime, the monthly take-home salary is approximately ₹54,000 to ₹56,000 depending on PF deduction choices and gratuity components.

How much is 10 LPA in hand?

For a 10 LPA CTC, the monthly take-home is roughly ₹72,000 to ₹75,000 under the New Regime after standard deductions and PF splits.

How much is 15 LPA in hand?

For a 15 LPA CTC, the monthly take-home is approximately ₹1,02,000 to ₹1,06,000 under the New Tax Regime.

What is gross salary?

Gross salary is the total sum of cash earnings (Basic + HRA + Allowances + Bonuses) before any employee deductions (PF, PT, TDS) are subtracted.

What is basic salary?

Basic salary is the core cash component of your salary structure, typically comprising 40% to 50% of the total Gross Salary. All statutory components like PF are calculated as percentages of basic.

HRA stands for House Rent Allowance. It is a salary component provided to meet rental expenses. Under the Old Tax Regime, you can claim tax exemption on a portion of HRA.

What is Professional Tax?

Professional Tax is a state-level tax on employment. In states like Maharashtra and Karnataka, it is ₹200 per month (₹2,500 annually).

How does income tax affect salary?

Income tax is deducted at source (TDS) by the employer monthly based on your projected annual taxable income and selected tax regime.

Which tax regime gives higher take-home salary?

For salaried individuals with minimal tax-saving investments, the New Tax Regime generally gives higher take-home because of lower tax rates. For those with high HRA, home loans, and 80C investments, the Old Regime may offer higher take-home.

Why is my in-hand salary lower than my CTC?

Because CTC includes employer-side retirement benefits (PF, NPS, gratuity), variable performance pay, and statutory tax deductions.

Is bonus included in in-hand salary?

A bonus is subject to tax, but since it is usually paid annually or quarterly, it is not part of your regular monthly take-home cash flow.

Is gratuity included in CTC?

Yes, most employers list the annual accrued gratuity (4.81% of basic salary) in the CTC block, even though it is only paid after completing 5 continuous years of service.

How can I calculate salary after PF and tax?

Input your CTC into this tool. It will subtract the employer-side benefits to find Gross pay, calculate monthly PF, apply tax regimes slabs, deduct professional tax, and display the final net take-home.

In-Hand Salary Calculator – CTC to Take-Home Salary Breakup

In-Hand Salary Calculator

Free online Indian In-Hand Salary Calculator. Break down CTC into Gross Salary, Net Take-Home, PF, Professional Tax, and compare Old vs. New Tax Regimes.

⚡ Interactive Calculation Engine Active

Please enable JavaScript in your browser to run live computations, 2D envelope diagrams, and export PDF reports.

How to Use In-Hand Salary Calculator

Choose a calculator mode: CTC to In-Hand, Gross to In-Hand, or Desired Take-Home (Reverse).
Input the CTC or Gross amount and select the Financial Year (e.g. FY 2026-27).
Configure HRA, Variable Bonuses, Gratuity, and State-wise Professional Tax settings.
Check the side-by-side New vs. Old Tax Regime comparison to identify the better take-home option.
Analyze your salary breakup in the interactive table or download the complete report as a PDF.

CTC vs Gross vs In-Hand Salary Explained

Understanding your salary slip components is crucial: - **CTC (Cost to Company)**: The total cost incurred by the employer. It includes basic, allowances, bonuses, employer PF/NPS contributions, gratuity, and corporate insurance premiums. - **Gross Salary**: The total cash salary paid before employee deductions. It equals CTC minus employer-side contributions. - **In-Hand (Net) Salary**: The actual monthly amount credited to your bank account. It is computed as Gross Salary minus Employee PF, Professional Tax, and TDS (Income Tax).

How to Calculate In-Hand Salary in India

To calculate your net take-home: 1. Deduct non-cash items (employer PF, NPS, and gratuity) from CTC to determine Gross Salary. 2. Deduct employee EPF (12% of Basic salary) and Professional Tax (typically ₹200/mo). 3. Calculate annual taxable income by subtracting Standard Deduction (₹75,000 for New Regime, ₹50,000 for Old Regime) and other savings. 4. Determine monthly TDS tax liability and subtract it to get Net take-home.

Old vs. New Tax Regime Salary breakups

The New Tax Regime (default) has lower slab rates and a higher rebate limit (up to ₹7 Lakhs taxable income gets a full rebate under Section 87A). The Old Tax Regime has higher tax rates but allows exemptions for HRA (rent paid), Section 80C (up to ₹1.5 Lakhs), Section 80D (medical insurance), and Home Loan Interest.

How PF and Gratuity Affect Take-Home

Employee Provident Fund (EPF) is a retirement savings vehicle. Employee contribution (12%) is deducted from your gross pay, directly reducing your monthly take-home, but building your retirement corpus. Gratuity (4.81% of basic) is a statutory benefit paid upon resignation/retirement after 5 years, included in CTC but excluded from monthly take-home.

Frequently Asked Questions

What is in-hand salary?: In-hand salary is the net take-home salary credited to your bank account every month after statutory deductions like EPF, Professional Tax, and Income Tax TDS.
How is in-hand salary calculated?: In-Hand Salary = Gross Salary − Employee PF − Professional Tax − Income Tax TDS. Gross salary is your CTC minus employer benefits (employer PF, NPS, and gratuity).
What is the difference between CTC and in-hand salary?: CTC (Cost to Company) represents the total annual budget allocated by the company for you, which includes benefits you do not receive monthly (employer retirement funds, insurance). In-hand is cash-in-hand paid monthly.
Does CTC include PF?: Yes. CTC typically includes both the Employer PF Contribution (12% of basic) and Employee PF Contribution (12% of basic).
Does employer PF reduce in-hand salary?: Employer PF does not reduce your gross pay directly, but since it is included in your CTC, it reduces the remaining pool available for cash components, thereby indirectly lowering your in-hand salary.
How much is 7 LPA in hand?: For a 7 LPA CTC in India under the New Tax Regime, the monthly take-home salary is approximately ₹54,000 to ₹56,000 depending on PF deduction choices and gratuity components.
How much is 10 LPA in hand?: For a 10 LPA CTC, the monthly take-home is roughly ₹72,000 to ₹75,000 under the New Regime after standard deductions and PF splits.
How much is 15 LPA in hand?: For a 15 LPA CTC, the monthly take-home is approximately ₹1,02,000 to ₹1,06,000 under the New Tax Regime.
What is gross salary?: Gross salary is the total sum of cash earnings (Basic + HRA + Allowances + Bonuses) before any employee deductions (PF, PT, TDS) are subtracted.
What is basic salary?: Basic salary is the core cash component of your salary structure, typically comprising 40% to 50% of the total Gross Salary. All statutory components like PF are calculated as percentages of basic.
What is HRA?: HRA stands for House Rent Allowance. It is a salary component provided to meet rental expenses. Under the Old Tax Regime, you can claim tax exemption on a portion of HRA.
What is Professional Tax?: Professional Tax is a state-level tax on employment. In states like Maharashtra and Karnataka, it is ₹200 per month (₹2,500 annually).
How does income tax affect salary?: Income tax is deducted at source (TDS) by the employer monthly based on your projected annual taxable income and selected tax regime.
Which tax regime gives higher take-home salary?: For salaried individuals with minimal tax-saving investments, the New Tax Regime generally gives higher take-home because of lower tax rates. For those with high HRA, home loans, and 80C investments, the Old Regime may offer higher take-home.
Why is my in-hand salary lower than my CTC?: Because CTC includes employer-side retirement benefits (PF, NPS, gratuity), variable performance pay, and statutory tax deductions.
Is bonus included in in-hand salary?: A bonus is subject to tax, but since it is usually paid annually or quarterly, it is not part of your regular monthly take-home cash flow.
Is gratuity included in CTC?: Yes, most employers list the annual accrued gratuity (4.81% of basic salary) in the CTC block, even though it is only paid after completing 5 continuous years of service.
How can I calculate salary after PF and tax?: Input your CTC into this tool. It will subtract the employer-side benefits to find Gross pay, calculate monthly PF, apply tax regimes slabs, deduct professional tax, and display the final net take-home.