Salary Calculator India
Convert your CTC to monthly in-hand salary for FY 2026-27. Compare old vs new tax regime. Includes PF, professional tax, and income tax.
CTC vs in-hand: what's the difference?
CTC (Cost to Company) is what the employer spends on you. In-hand is what hits your bank account. The gap includes employee PF (12% of basic, deducted), professional tax (₹200-300/month, state-wise), income tax (annual, deducted monthly as TDS), and employer-side costs (employer PF, gratuity provision, insurance) which are part of CTC but never reach your account.
Old vs new tax regime: which to choose in FY 2026-27?
The new regime is the default from FY 2024-25 onwards and benefits most salaried employees. Tax slabs: 0-3L (0%), 3-7L (5%), 7-10L (10%), 10-12L (15%), 12-15L (20%), 15L+ (30%). Standard deduction ₹75,000. Rebate under 87A up to ₹7L income. The old regime still wins if you claim heavy deductions: 80C (PF, ELSS, PPF — capped at ₹1.5L), 80D (health insurance), HRA (rent paid), home loan interest (up to ₹2L), NPS, LTA, education loan interest. If your total deductions exceed ₹3.75L, old regime is better.
How PF and gratuity are calculated
Provident Fund: 12% of basic salary, split equally. Employee pays 12% (deducted from in-hand), employer pays 12% (part of CTC, not in-hand). On a basic of ₹40,000/month: ₹4,800 employee + ₹4,800 employer. Gratuity: provisioned at 4.81% of basic (15 days of basic per year of service, statutory cap ₹20L). You receive gratuity only after 5 continuous years with the same employer.
State-wise professional tax in India
Professional tax is a state-level deduction. Most states charge ₹200/month (₹2,500/year max). Some charge more: West Bengal ₹250/month, Assam/Tripura ₹208/month. A handful of states have no professional tax: Delhi, Haryana, Rajasthan, Goa, Punjab. If you relocate, your take-home changes slightly. Some companies stop deducting PT in February or March, leading to a small in-hand bump those months.
Frequently asked questions
What is CTC?
CTC (Cost to Company) is the total amount a company spends on you per year — your in-hand, employee PF, professional tax, and employer-side contributions (employer PF, gratuity, insurance). CTC is always more than your in-hand.
Old vs new tax regime — which is better in FY 2026-27?
New regime is the default and best for most salaried under ₹15L CTC. If your total deductions (80C, 80D, HRA, home loan) exceed ₹3.75L/year, old regime wins.
How is PF calculated?
PF is 12% of basic salary. Employee pays 12% (deducted from in-hand), employer pays 12% (in CTC, not in-hand). On basic ₹50,000/mo: ₹6,000 employee + ₹6,000 employer.
What is professional tax?
A state-level tax deducted from salary. Most states charge ₹200/month (₹2,500/year max). West Bengal ₹250/mo. Delhi, Haryana, Rajasthan have no PT.
Is gratuity included in CTC?
Yes. Provisioned at 4.81% of basic (15 days of basic per year of service, capped at ₹20L). You receive it only after 5 years of continuous employment with the same employer.