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

CTC (Cost to Company) is the total amount a company spends on an employee. In-hand salary is what you actually receive after deductions like PF (12% of basic), professional tax, and income tax.

How is PF calculated on salary?

PF is 12% of your basic salary per month. Both you and your employer contribute 12% each. Only your contribution is deducted from your in-hand pay.

What is HRA and how is it calculated?

HRA (House Rent Allowance) is typically 40-50% of basic salary. It is partially exempt from income tax if you pay rent.

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💰 In-Hand Salary Calculator

Calculate your monthly take-home salary after PF, Professional Tax and standard deductions from your CTC.

Annual CTC (₹)

₹

Basic Salary (% of CTC)

HRA (% of Basic)

Professional Tax (₹/month)

💡 PF = 12% of Basic. This is an estimate. Actual payslip may vary by company policy and tax bracket.

🎯 Calculate in-hand salary for: 3 LPA in-hand salary · 5 LPA take home salary · 6 LPA CTC in hand · 8 LPA salary breakdown · 10 LPA monthly in-hand · 12 LPA take home salary · 15 LPA salary calculator · 20 LPA in hand salary · 25 LPA monthly salary · 30 LPA salary after tax · New tax regime vs old tax regime salary comparison

What is CTC and In-Hand Salary?

CTC (Cost to Company) is the total annual expenditure a company makes on an employee — including salary, PF contribution, gratuity, and other benefits. It is what the company spends, not what you take home. In-hand salary (or take-home salary) is the actual amount credited to your bank account every month after all deductions.

The gap between CTC and in-hand salary surprises many new employees. On a ₹12 LPA CTC, your monthly in-hand salary could be anywhere from ₹75,000 to ₹88,000 depending on your tax regime, HRA, and other components.

CTC Breakdown Formula

In-Hand = Basic + HRA + Special Allowance − Employee PF − Professional Tax − Income Tax (TDS)

Example: ₹10 LPA CTC Breakdown

Annual CTC: ₹10,00,000

Basic Salary (40% of CTC): ₹4,00,000 → Monthly: ₹33,333
HRA (50% of Basic): ₹2,00,000 → Monthly: ₹16,667
Special Allowance: ₹3,16,000 → Monthly: ₹26,333
Employer PF (12% of Basic): ₹48,000 → Monthly: ₹4,000
Gratuity: ₹19,231

Deductions: Employee PF ₹4,000 + Prof Tax ₹200 + TDS ~₹2,500
Estimated Monthly In-Hand: ~₹70,000

Tips to Maximise Your In-Hand Salary

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Claim HRA Exemption

If you pay rent, HRA is partially tax-exempt. Minimum of: actual HRA received, 50% of basic (metro) or 40% (non-metro), or actual rent minus 10% of basic.

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New vs Old Tax Regime

New regime has lower rates but no deductions. Old regime allows 80C (₹1.5L), 80D (health insurance), HRA, LTA. Calculate both to choose the better option.

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Food & Travel Allowance

Meal vouchers up to ₹50/meal (₹26,400/year) and LTA for two journeys in 4 years are tax-exempt. Ask HR to restructure your salary to include these.

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Phone & Internet Bills

Reimbursements for phone and internet bills (with bills submitted) are tax-free. Ask HR to add a ₹1,500–2,000/month reimbursement component to your CTC.

Professional Tax by State

Professional Tax is levied by state governments on salaried individuals. Maximum is ₹2,500 per year. Maharashtra charges ₹200/month (₹300 in February). Karnataka charges ₹200/month. Some states like Delhi, Rajasthan, and Haryana do not levy professional tax.