CTC to In-Hand Salary Calculator
Estimate your monthly take-home pay from your annual CTC. Compares New vs. Old Tax Regime with standard deductions.
CTC to Monthly In-Hand Salary
Updated with Union Budget 2025-26: Zero tax up to ₹12 Lakhs (₹12.75L with standard deduction).
Annual Take-Home: ₹10,59,312
* Mathematical estimates for planning purposes based on standard tax slabs. Actual payroll figures and tax deductions depend on your employer's structure and individual tax filing.
Frequently Asked Questions: Understanding Your Salary Slip
1. Why is In-Hand Salary lower than the CTC on an offer letter?
CTC (Cost to Company) includes everything your employer spends on you, including non-cash statutory retirement benefits like Employer PF (12%), Gratuity, and insurance. Your In-Hand Salary is what remains after deducting Employer PF, Employee PF, Professional Tax, and Income Tax (TDS).
2. What is the ₹12 Lakh Tax Exemption in Union Budget 2025-26?
Under Union Budget 2025-26, the Section 87A rebate was increased to ₹60,000, meaning zero income tax on taxable income up to ₹12 Lakhs under the New Tax Regime. For salaried employees, adding the ₹75,000 Standard Deduction means gross salary up to ₹12.75 Lakhs is effectively 100% tax-free.
3. Which regime is better: New or Old Tax Regime?
Under the revised Budget 2025-26 slabs, the New Tax Regime is significantly more advantageous for almost all salaried employees earning up to ₹12.75 Lakhs (due to zero tax) and offers much lower tax slabs for higher incomes. The Old Tax Regime is typically beneficial only if you claim very large total deductions (Section 80C, Section 24 home loan interest, high HRA exemption, and medical insurance exceeding ~₹4+ Lakhs).
4. How is Employee Provident Fund (EPF) calculated?
Typically, 12% of your Basic Salary is deducted from your monthly paycheck and deposited into your EPFO account, along with an employer contribution.
5. Why is Professional Tax ₹0 in Delhi, Haryana, and UP?
Professional Tax is levied by individual state governments. While states like Maharashtra, Karnataka, and Telangana levy a standard tax, states like Delhi, Haryana, and Uttar Pradesh currently do not levy Professional Tax.
* Disclaimer: This calculator provides mathematical estimates for general guidance only. Actual payroll deductions, allowances, and tax withholding are calculated by your employer based on specific payroll structures and your tax declarations.