Tax year: FY 2026-27 · Last updated: 3 Nov 2026
Short answer
A ₹12 lakh CTC is about ₹94,268 a month in hand under the new tax regime. Enter your own figure above for yours.
How in-hand salary is calculated
In-hand salary, also called take-home pay or net salary, is the amount that reaches your bank account each month. Employers quote CTC (cost to company) in an offer letter, but CTC is not the same as the money you can spend. The calculator follows four steps.
Start with CTC
The total yearly cost of employing you, including benefits you do not receive as cash.
Remove employer contributions
Employer PF (12% of basic) and gratuity (4.81% of basic) are not paid out monthly. What remains is your gross salary.
Remove your own deductions
Employee PF, professional tax and income tax come out of gross salary.
Divide by 12
The yearly result becomes your monthly in-hand salary.
Income tax is worked out twice, once for the new tax regime and once for the old regime, so you can compare them side by side. The new regime is shown first because it is the default regime for salaried employees.
Worked example: ₹12 lakh CTC
With the default settings (basic pay at 40% of CTC, PF capped at ₹15,000 of wages, gratuity included, a metro city and Maharashtra professional tax), a ₹12 lakh CTC works out like this.
- ₹96,276
- Gross a month
- ₹0
- Tax + cess a month (new)
- ₹94,268
- In-hand a month (new)
| Item | Monthly | Yearly |
|---|---|---|
| Basic (40% of CTC) | ₹40,000 | ₹4,80,000 |
| HRA (50% of basic, metro) | ₹20,000 | ₹2,40,000 |
| Special allowance | ₹36,276 | ₹4,35,312 |
| Gross salary | ₹96,276 | ₹11,55,312 |
| Employee PF | ₹1,800 | ₹21,600 |
| Professional tax (Maharashtra) | ₹208 | ₹2,500 |
| Income tax + cess, new regime | ₹0 | ₹0 |
| In-hand, new regime | ₹94,268 | ₹11,31,212 |
| Income tax + cess, old regime (no deductions) | ₹11,862 | ₹1,42,339 |
| In-hand, old regime (no deductions) | ₹82,406 | ₹9,88,873 |
Under the new regime, taxable income stays below ₹12 lakh after the standard deduction, so the section 87A rebate brings income tax to zero. The old regime, with no deductions entered, charges tax on the same salary. Enter your 80C, 80D, rent and home-loan details under More options to see whether the old regime can catch up.
What changes your take-home pay
Basic pay percentage
A higher basic means more PF and gratuity, so less cash in hand but more savings.
PF basis
Many employers deduct PF only on ₹15,000 a month. Others deduct on full basic, which lowers monthly pay noticeably.
Variable pay
Bonus and incentives are part of CTC but are paid on a schedule. This calculator averages them over 12 months.
Tax regime
The right regime depends on how many deductions you can claim.
State
Professional tax is charged by states and differs in amount and threshold.
Before tax and after tax view
Use the Before tax tab to see gross salary broken into basic, HRA and special allowance. Use After tax to see the deductions and the final in-hand amount. If you want just one of these views, try the after-tax calculator or the monthly in-hand salary calculator.
To understand the regime choice in depth, read old vs new tax regime. If you are not sure what the terms in your offer letter mean, start with what is CTC.
Frequently asked questions
How do I calculate in-hand salary from CTC?
Subtract the employer's contributions (employer PF and gratuity) from CTC to get gross salary. Then subtract your own PF, professional tax and income tax. Divide the yearly result by 12 for the monthly in-hand figure. The calculator above does all of this as you type.
Why is my in-hand salary much lower than CTC?
CTC includes money you never receive as monthly pay: employer PF, gratuity, insurance and sometimes variable pay. On top of that, your own PF, professional tax and income tax are deducted from the gross salary.
Which tax regime is better for me?
The new regime has lower slab rates and a rebate that makes income up to ₹12 lakh tax free, but allows few deductions. The old regime allows deductions such as 80C, 80D, HRA and home-loan interest. The comparison section shows which one leaves more in hand for your numbers.
Is employee PF deducted from my salary?
Yes. Employee PF is normally 12% of basic pay, or 12% of the ₹15,000 wage ceiling (₹1,800 a month) if your employer caps it. You can switch between both under More options.
Does this calculator store my salary?
No. Every calculation runs in your browser. Your salary is not sent to a server, logged or saved. The share link only contains your inputs in the page address.
Is the result exact?
It is a close estimate. Companies structure salary differently, so your real payslip can vary. Treat it as a planning tool and confirm with your employer's payroll team.
Keep reading
Estimates only. This calculator is not tax advice, and your employer's payslip is the final word. Read the full disclaimer.