Salary Calculator: CTC to In-Hand (New Tax Regime)
Enter your annual CTC (Cost to Company) to estimate your monthly in-hand salary under India's new tax regime (FY 2026-27), including PF, professional tax, and income tax after the standard deduction and Section 87A rebate. Results update instantly as you type.
Results and any AI-generated content from this tool are provided free, "as is", for general informational purposes only and may be inaccurate, incomplete, or out of date. Always verify the output yourself before relying on it — you use this tool and its results at your own risk.
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How CTC becomes your in-hand salary
Your CTC (Cost to Company) isn't what lands in your bank account — it
includes the employer's own contributions on top of what you're actually
paid. This calculator models the common structure: Basic pay = CTC
× basic%, the employer's PF contribution (12% of Basic) is part
of CTC but never reaches you, so Gross Salary = CTC − Employer
PF. From gross salary, your own PF share (also 12% of Basic),
professional tax, and income tax are deducted to arrive at in-hand pay. All
calculations use the new tax regime (the default regime
since FY 2023-24), which offers a flat ₹75,000standard deduction and a Section 87A rebate, but does not allow HRA or most
other exemptions.
Worked examples
Example 1 — ₹6,00,000 CTC: at 40% basic, Basic = ₹2,40,000/year. Employer PF = 12% × 2,40,000 = ₹28,800. Gross salary = 6,00,000 − 28,800 = ₹5,71,200. Taxable income = 5,71,200 − 75,000 standard deduction = ₹4,96,200 — well under the ₹12,00,000 Section 87A threshold, so income tax is fully rebated to ₹0. After employee PF (₹28,800) and professional tax (₹2,400), monthly in-hand ≈ ₹45,000.
Example 2 — ₹15,00,000 CTC: at 40% basic, Basic = ₹6,00,000/year. Employer PF = ₹72,000. Gross salary = 15,00,000 − 72,000 = ₹14,28,000. Taxable income = 14,28,000 − 75,000 = ₹13,53,000 — above the 87A threshold, so tax is computed on the full slab table: ₹20,000 (5% slab) + ₹40,000 (10% slab) + ₹22,950 (15% slab on the remaining ₹1,53,000) = ₹82,950, plus 4% cess = ₹86,268 total. After employee PF (₹72,000), professional tax (₹2,400), and tax, monthly in-hand ≈ ₹1,05,611.
Why is income tax ~₹0 up to ₹12.75 lakh gross?
Section 87A rebates the entire computed tax (up to a cap) whenever taxable income (after the ₹75,000 standard deduction) is ₹12,00,000 or less — which means a salaried employee's gross salary can be as high as ₹12,75,000 and still owe zero income tax under the new regime. This calculator applies that rebate automatically, plus the narrow "marginal relief" band just above the threshold so tax never jumps by more than the income that crossed it.
What this calculator doesn't model
Old-regime vs. new-regime comparison and HRA exemption math are intentionally out of scope — the new regime doesn't allow an HRA exemption at all, so the metro/non-metro toggle above only affects the informational HRA line in the breakdown, never your tax or in-hand figure. Actual payslips vary by employer: some cap PF contribution at a statutory wage ceiling, add gratuity or NPS components, or apply a different professional tax slab for your specific state — always confirm with your employer's HR/payroll team before making financial decisions.
Frequently Asked Questions
Gross salary = CTC − employer PF contribution. In-hand = gross salary − employee PF − professional tax − income tax (new regime, after standard deduction and Section 87A rebate), divided by 12.
Under the new tax regime, Section 87A fully rebates computed tax whenever taxable income (after the standard deduction) is ₹12,00,000 or less — so gross salaries up to about ₹12.75 lakh owe zero income tax.
No. The new tax regime allows no HRA exemption at all, so the toggle only changes the informational HRA split shown in the breakdown table — your tax and in-hand figures stay exactly the same either way.
It's an estimate using a common, simplified CTC structure. Actual payslips vary by employer — PF wage ceilings, gratuity, NPS, and state-specific professional tax slabs can all shift the real number. Always confirm with your employer's HR/payroll team.
The new tax regime only — it has been the default regime since FY 2023-24. Old-regime comparison and HRA exemption math are intentionally out of scope for this calculator.
