# In-Hand Salary Calculator

> Turn your CTC into monthly take-home pay for FY 2025-26: employee and employer PF, professional tax and income tax under the new or old regime.

Category: India tax & investing · Applies to: India · Last updated: 2026-10-29
Interactive calculator: https://calculators.geekmidst.com/calculators/india-salary-in-hand-calculator

Take-home pay is your CTC minus the employer’s PF and other non-cash items, then minus your own PF, professional tax and income tax.

Also called: Take-home salary calculator, CTC to in-hand calculator.

## Inputs
- Annual CTC (default 1200000)
- Basic pay as a share of CTC (unit %; default 50)
- PF contribution rate (unit % of basic; default 12)
- PF wage cap per month (optional) (default ; optional)
- Employer PF is part of CTC (options: Yes, No; default yes)
- Other CTC items not paid monthly (default 0; optional)
- Professional tax (year) (default 2400; optional)
- Tax regime (options: New, Old; default new)
- Your age during the year (options: Below 60, 60 to 79 (senior citizen), 80 or over (super senior); default below60)
- Old-regime deductions and exemptions (default 0; optional)
- Currency (default INR)

## Results
- Monthly take-home pay
- Yearly take-home pay
- Gross salary
- Income tax for the year
- Your PF contribution
- Employer PF inside CTC
- Professional tax

## Formula

```
Gross = CTC − Employer PF − Other CTC items; Taxable = Gross − Standard deduction (₹75,000 new / ₹50,000 old) − old-regime deductions; Take-home = Gross − Employee PF − Professional tax − Income tax. Tax = slab tax − rebate u/s 87A (with marginal relief) + surcharge (with marginal relief) + 4% health and education cess
```

Where:
- PF: PF rate × basic pay (or the capped PF wage) × 12
- Income tax: FY 2025-26 tax for the chosen regime

## Worked example
1. Basic = 50% × 12,00,000 = ₹6,00,000; PF at 12% = ₹72,000 from you and ₹72,000 from the employer.
2. Gross = 12,00,000 − 72,000 = ₹11,28,000; taxable (new) = 11,28,000 − 75,000 = ₹10,53,000, below ₹12 lakh, so tax is nil after rebate.
3. Take-home = 11,28,000 − 72,000 − 2,400 = ₹10,53,600 a year, or ₹87,800 a month.

**Result:** A ₹12 lakh CTC with 50% basic pays about ₹87,800 a month in hand under the new regime.

## What the result means

A large part of the gap between CTC and take-home pay is PF, which is still your money. Try the old regime with your deductions to see whether it raises your monthly pay.

## Assumptions and limits
- Rates are for FY 2025-26 (AY 2026-27), the year covered by the Finance Act 2025, as published by the Income Tax Department. They are not yet updated for tax year 2026-27 under the Income-tax Act, 2025.
- You are a resident individual and all income is taxed at normal slab rates (no special-rate capital gains, lottery or similar income).
- New regime: nil up to ₹4 lakh, then 5%, 10%, 15%, 20%, 25% in ₹4 lakh steps and 30% above ₹24 lakh; rebate up to ₹60,000 when income is at most ₹12 lakh, with marginal relief just above it.
- Old regime: nil up to ₹2.5 lakh (₹3 lakh at 60–79, ₹5 lakh at 80+), 5% to ₹5 lakh, 20% to ₹10 lakh, 30% above; rebate up to ₹12,500 when income is at most ₹5 lakh.
- Surcharge of 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore, and above ₹5 crore 25% (new) or 37% (old), with marginal relief; 4% cess on tax plus surcharge.
- Professional tax is deducted from pay but not from taxable income here.
- Employer and employee PF use the same rate and wage base.
- Variable pay, reimbursements and perquisites are not modelled.
- Employers spread tax (TDS) across the year differently, so monthly pay may vary.
- Tax on employer PF or NPS above the tax-free limits is not included.

## Rules used
- Jurisdiction: India
- Effective from: 2025-04-01
- Authority: Income Tax Department (CBDT), Finance Act 2025, for FY 2025-26 / AY 2026-27
- Last checked: 2026-10-29

## Questions

### Why is my in-hand salary much lower than CTC ÷ 12?

CTC includes the employer’s PF and items such as gratuity and insurance that are not paid monthly; your own PF, professional tax and income tax are then deducted.

### Does a higher basic pay reduce take-home pay?

Usually yes, because PF is a percentage of basic. It also raises your PF savings and gratuity.

## Sources
- [Income Tax Department — tax rates for AY 2026-27 (senior citizens and super senior citizens)](https://www.incometax.gov.in/iec/foportal/help/individual/return-applicable-2)
- [Income Tax Department — individuals with business or professional income, AY 2026-27](https://www.incometax.gov.in/iec/foportal/help/individual-business-profession)
- [CBDT — e-filing ITR-4 validation rules, AY 2026-27](https://www.incometax.gov.in/iec/foportal/sites/default/files/2026-05/CBDT_e-Filing_ITR%204_Validation%20Rules_AY%202026-27.pdf)
- [Income Tax Department — FAQs on new vs old tax regime](https://www.incometax.gov.in/iec/foportal/help/new-tax-vs-old-tax-regime-faqs)

## Related calculators
- [Old vs New Tax Regime Calculator](https://calculators.geekmidst.com/calculators/india-old-vs-new-tax-regime-calculator)
- [EPF Calculator](https://calculators.geekmidst.com/calculators/epf-balance-calculator)
- [HRA Exemption Calculator](https://calculators.geekmidst.com/calculators/hra-exemption-india-calculator)
- [Gratuity Calculator](https://calculators.geekmidst.com/calculators/gratuity-india-calculator)
- [Salary Calculator](https://calculators.geekmidst.com/calculators/salary-calculator)

_Tax rules change and depend on how a supply is classified. Use this as a guide and confirm with the official notifications or a tax professional._

Source: GM¹X CalcVerse — https://calculators.geekmidst.com/calculators/india-salary-in-hand-calculator