Salary Calculator - CTC to In-hand Salary Calculator
Calculate your monthly take-home salary from annual CTC. Get detailed breakdown of earnings, deductions, and compare old vs new tax regime to maximize your savings.
Salary Calculator - CTC to In-hand
Monthly CTC: ₹1,00,000
Monthly Basic: ₹40,000
Max yearly: Rs 2,500 (most states)
How CTC to In-hand Calculation Works
Converting CTC (Cost to Company) to in-hand salary involves understanding the various components that make up your compensation package:
CTC Components:
- Basic Salary (40-50% of CTC): Foundation for other calculations like EPF, gratuity
- HRA (40-50% of Basic): House Rent Allowance, tax-exempt if you pay rent
- Special Allowance: Remaining amount after other components
- Employer EPF (12% of Basic): Goes to your retirement fund
- Gratuity (4.81% of Basic): Payable after 5 years of service
Deductions from Salary:
- Employee EPF: 12% of basic (capped at Rs 1,800/month)
- Professional Tax: State-specific, max Rs 2,500/year
- Income Tax (TDS): Based on your tax slab and regime
New vs Old Tax Regime (FY 2024-25)
| Income Slab | New Regime | Old Regime |
|---|---|---|
| Up to Rs 3 Lakh | Nil | Nil (up to 2.5L) |
| Rs 3-7 Lakh | 5% | 5% (2.5L-5L) |
| Rs 7-10 Lakh | 10% | 20% (5L-10L) |
| Rs 10-12 Lakh | 15% | 30% (above 10L) |
| Rs 12-15 Lakh | 20% | 30% |
| Above Rs 15 Lakh | 30% | 30% |
* New regime has standard deduction of Rs 75,000. Old regime has Rs 50,000 standard deduction plus 80C, 80D, HRA exemption etc.
Frequently Asked Questions
What is the difference between CTC and In-hand salary?
CTC (Cost to Company) is the total amount a company spends on an employee annually, including salary, EPF, gratuity, insurance, etc. In-hand salary (take-home) is what you actually receive after deductions like EPF, professional tax, and income tax. Typically, in-hand salary is 70-85% of CTC.
How is basic salary calculated from CTC?
Basic salary is typically 40-50% of CTC. Some companies keep it lower (35-40%) to reduce EPF contributions, while others keep it higher for better retirement benefits. The exact percentage varies by company policy.
What are the main deductions from salary?
Main salary deductions include: EPF (12% of basic, capped at Rs 1,800/month), Professional Tax (Rs 200/month, max Rs 2,500/year), and Income Tax (TDS based on your tax slab). Together, these can reduce your CTC by 15-30%.
Which tax regime is better - Old or New?
New regime is better for most employees earning below Rs 15 Lakhs or those without significant deductions. Old regime benefits those with home loans (HRA + interest), high 80C investments, and other deductions totaling more than Rs 3-4 Lakhs.
What is included in CTC but not in take-home salary?
Components included in CTC but not in take-home: Employer EPF contribution (3.67% to EPF + 8.33% to pension), Gratuity (4.81% of basic), Insurance premiums, Meal coupons, and company car/fuel benefits. These add up to 15-20% of CTC.
Sample CTC to In-hand Conversions
| Annual CTC | Monthly Gross | Monthly Deductions | Monthly In-hand* |
|---|---|---|---|
| Rs 5 Lakh | ~Rs 35,000 | ~Rs 3,500 | ~Rs 31,500 |
| Rs 8 Lakh | ~Rs 56,000 | ~Rs 7,000 | ~Rs 49,000 |
| Rs 12 Lakh | ~Rs 84,000 | ~Rs 14,000 | ~Rs 70,000 |
| Rs 20 Lakh | ~Rs 1,40,000 | ~Rs 35,000 | ~Rs 1,05,000 |
*Approximate values with 40% basic salary, new tax regime. Actual may vary based on company structure.