CTC to In-Hand Salary Calculator

Offer letters quote CTC, but your bank account sees in-hand pay. Enter your CTC and basic salary percentage to see the gap. Income tax depends on your regime and deductions, so enter your expected annual tax if you know it.

Quick answer

In-hand salary ≈ CTC − employer PF − gratuity − employee PF − professional tax − income tax (TDS), divided by 12. PF is 12% of basic salary (commonly capped at ₹1,800/month when basic exceeds ₹15,000 and the employer opts for the wage ceiling).

How to use the CTC to In-Hand Salary Calculator

Enter annual CTC.
Enter basic salary as a % of CTC (often 40–50%).
Choose the PF basis (actual or capped at ₹15,000 wage ceiling).
Enter professional tax and estimated annual income tax.
Read monthly in-hand pay.

Worked example

CTC ₹12,00,000, basic 50%: basic ₹6,00,000; employer PF ₹72,000; gratuity ≈ ₹28,860; employee PF ₹72,000; PT ₹2,400. Before income tax, in-hand ≈ ₹10,24,740 a year, about ₹85,395 a month.

Formula

Gratuity (provision) = Basic × 4.81%
PF = 12% of Basic (or of ₹15,000/month if capped)

Frequently asked questions

Why is gratuity deducted from CTC?

Many employers include the gratuity provision in CTC, but it is paid only on leaving after (usually) five years of service.

Does this calculate my income tax?

No. Tax depends on your regime choice and deductions. Enter the annual tax figure from your payslip or tax planner.

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