Mera Hisab
CTC vs in-hand salary
Your CTC (cost to company) is everything the employer spends on you in a year, including its own PF contribution and sometimes gratuity. Your in-hand salary is what reaches your bank account each month after:
- Employer's PF and gratuity, which are part of the CTC but not paid out monthly;
- Your PF contribution (12% of basic, usually);
- Professional tax (₹2,500 a year in Maharashtra);
- Income tax (TDS), spread over the year's salary.
Examples for FY 2026-27
Assuming basic salary at 50% of CTC, PF limited to ₹3,000 a month, professional tax of ₹2,500 and no other deductions:
| CTC per year | Tax, new regime | Tax, old regime | In-hand per month (new regime) |
|---|---|---|---|
| ₹3,00,000 | ₹0 | ₹0 | ₹21,792 |
| ₹6,00,000 | ₹0 | ₹0 | ₹43,792 |
| ₹10,00,000 | ₹0 | ₹91,104 | ₹77,125 |
| ₹13,00,000 | ₹0 | ₹1,71,756 | ₹1,02,125 |
| ₹15,00,000 | ₹91,884 | ₹2,34,156 | ₹1,11,135 |
| ₹25,00,000 | ₹3,09,140 | ₹5,46,156 | ₹1,76,363 |
Under the new regime, a salary is tax-free up to about ₹12.75 lakh of gross salary: the ₹75,000 standard deduction brings it to ₹12 lakh of taxable income, where the rebate makes the tax nil.
Income-tax slabs for FY 2026-27
Budget 2026 did not change the rates for salaried people.
| New regime (default) | Rate | Old regime (below 60 years) | Rate |
|---|---|---|---|
| Up to ₹4 lakh | Nil | Up to ₹2.5 lakh | Nil |
| ₹4–8 lakh | 5% | ₹2.5–5 lakh | 5% |
| ₹8–12 lakh | 10% | ₹5–10 lakh | 20% |
| ₹12–16 lakh | 15% | Above ₹10 lakh | 30% |
| ₹16–20 lakh | 20% | ||
| ₹20–24 lakh | 25% | ||
| Above ₹24 lakh | 30% |
- Standard deduction: ₹75,000 (new) or ₹50,000 (old).
- Rebate: nil tax up to ₹12 lakh of taxable income (new, with marginal relief just above it) or ₹5 lakh (old).
- Cess: 4% on the tax; surcharge applies above ₹50 lakh.
New or old regime?
The old regime only helps if you have large deductions: investments in PF, PPF, ELSS, life insurance and similar (up to ₹1.5 lakh under section 123 of the Income-tax Act, 2025, earlier section 80C), HRA exemption for rent, health insurance, and home-loan interest. Enter them under "Old regime" above to compare; for most people earning up to about ₹15–20 lakh, the new regime leaves more money.
Tips
- PF is savings, not a loss. It earns interest and comes back to you, but it lowers your monthly in-hand pay.
- Tell HR your regime at the start of the year, so TDS is deducted correctly each month.
- Offer letters differ. Some companies include variable pay, insurance or meal cards in the CTC; subtract anything that isn't paid monthly before comparing offers.
Frequently asked questions
How much in-hand salary will I get on a ₹10 lakh CTC?
With basic at 50%, PF of ₹3,000 a month and ₹2,500 professional tax, about ₹77,125 a month under the new regime, with no income tax.
Is salary up to ₹12 lakh tax-free?
Under the new regime, yes: taxable income up to ₹12 lakh has nil tax because of the rebate, and with the ₹75,000 standard deduction that means a gross salary up to ₹12.75 lakh.
Why does my PF change my in-hand salary?
Both your PF and your employer's PF come out of the CTC. The new EPF wage ceiling of ₹25,000 a month (from 17 September 2026) means the minimum PF is 12% of basic up to ₹25,000, that is ₹3,000 a month; many employers deduct 12% of the full basic instead.
Do all states charge professional tax?
No. Maharashtra, Karnataka, West Bengal, Gujarat and several other states do; some states don't. Enter your state's amount, or 0.
Is the information I enter saved anywhere?
No. The calculation happens entirely in your browser. Nothing you enter is sent to our server or stored.