RupeeKit Logo
ENहिंदीবাংলা

Salary In-Hand Calculator India 2026

💼 FY 2026-27 (AY 2027-28) Estimate

This salary in-hand calculator uses revised tax brackets including the latest Union Budget changes for New Regime (Budget 2025 slabs, unchanged by Budget 2026). All calculations are estimates.

1. Base Compensation

Basic Salary

Standard auto-estimate sets Basic Salary at 50% of CTC.

2. Monthly Deductions & PF

3. Tax Settings & Regime

Estimated Monthly In-Hand

Net Monthly In-Hand

₹87,800

Gross Monthly Salary

₹94,000

Monthly TDS (Tax)

₹0

Monthly Deductions

₹6,200

* Net monthly in-hand is estimated from gross salary minus employee PF (12%), professional tax, estimated tax/TDS, and other deductions.

Monthly Allocation Breakdown

Monthly In-Hand87.8%
Employee PF6.0%
Professional Tax0.2%
Employer PF6.0%

Salary Breakup Grid

Monthly CTC equivalent₹1,00,000
Less: Employer PF (12% of Basic)- ₹6,000
Gross monthly salary₹94,000
Basic Salary₹50,000
Deductions & Taxes
Employee PF (12%)- ₹6,000
Professional Tax- ₹200
Estimated Income Tax (TDS)- ₹0
Net In-Hand Salary₹87,800

Estimated Tax Slab Breakdown

SlabRateIncome in SlabTax
₹0.0L - ₹4.0L0%₹4,00,000₹0
₹4.0L - ₹8.0L5%₹4,00,000₹20,000
₹8.0L - ₹12.0L10%₹2,53,000₹25,300
Tax before Cess/Rebate₹45,300
Section 87A Rebate / Marginal Relief- ₹45,300
Health & Education Cess (4%)₹0
Total Estimated Annual Tax₹0
Gross Annual Income:₹11,28,000
Eligible Deductions/Exemptions:- ₹75,000
Net Taxable Income:₹10,53,000

Salary Structure FAQs

What is the difference between CTC and gross salary?

CTC (Cost to Company) represents the total expense an employer incurs on an employee. This includes elements you never see directly in cash, such as the employer's contribution to EPF, gratuity provisions, health insurance premiums, and other employee benefits. Gross salary is the amount calculated after subtracting non-cash employer provisions (like employer PF) from CTC but before subtracting statutory employee contributions and income tax.

Is standard deduction applicable automatically?

Yes, standard deduction is a flat tax deduction available to all salaried taxpayers and pensioners. For FY 2024-25 through FY 2026-27, it is ₹75,000 for the New Regime, and ₹50,000 for the Old Regime. This has been factored into your calculations automatically based on your regime selection.

How does HRA exemption work in the Old Tax Regime?

HRA (House Rent Allowance) exemption reduces your taxable income under Section 10(13A). It is calculated as the lowest of: (1) actual HRA received, (2) actual rent paid minus 10% of your basic salary, or (3) 50% of basic salary for metro cities (Delhi, Mumbai, Chennai, Kolkata) or 40% for other cities. HRA exemption is not available in the New Tax Regime.

⚠️ Educational Estimate Only

This calculator provides an educational estimate only. Actual salary structures, tax deductions, surcharge rates, marginal relief eligibility, cess computations, and employee benefits vary across organizations and states. Surcharges on income exceeding ₹50 Lakhs are not included in this basic model. Please verify your final numbers against your actual offer letter, monthly payslip, Form 16, or with your company's payroll department, a certified tax advisor, or the official Income Tax Department portal.

Share this calculator scenario

Educational estimate only

How to use this calculator

Reconcile CTC, PF, tax and monthly take-home, then compare two salary options on a twelve-month cash calendar. Include bonus dates, delayed first pay and switching costs, or solve for the fixed CTC behind your target monthly in-hand.

Written and reviewed by RupeeKit Editorial TeamLast reviewed 12 September 2026Report a correction
Tested calculation v2026-08-17.1Primary sources checked 2026-08-17Inputs processed in your browser
Indian salaried professional reviewing a pay statement and in-hand salary plan with a calculator

CTC ≠ Take-Home

RupeeKit Logo
Indian salaried professional reviewing a pay statement and in-hand salary plan with a calculator

Educational estimate only

Results can vary based on company policy, lender terms, tax law, and personal assumptions.

Compare salary offers with a twelve-month cash calendar

Choose Salary cash planner above to compare two salary options using fixed CTC, bonus payment dates, delayed first pay, switching costs and work expenses. It also solves for the fixed CTC behind a desired normal monthly in-hand salary.

Why can a higher CTC leave less usable cash?

Variable pay may arrive later or pay out below target. A job switch may require cash for moving or notice buyout before the first salary arrives. The calendar separates regular salary, bonus receipts, estimated tax and expenses so those timing differences are visible.

How is a joining-bonus clawback handled?

The full gross joining bonus is shown as possible repayment exposure from its receipt through the entered period after starting the job. A separate chart subtracts that exposure from available cash. Contract-specific prorating and any tax recovery after repayment are excluded.

Which salary and tax situations does the planner cover?

The model covers resident individuals below 60 with salary-only income and projected annual gross salary up to ₹50 lakh. It uses entered earlier-year income and TDS, and estimates each April-March year separately. The selected tax-rule year remains constant even when the calendar crosses into a future year; actual payroll withholding can differ.

Planning workflow reviewed 23 September 2026. The Quick calculator mode and its examples remain available above. PDF and CSV reports are generated in your browser.

CTC to In-Hand Salary Quick Answer

Quick Answer

How do I estimate in-hand salary from CTC? Start with the monthly cash-salary base in your offer or payslip, then subtract employee PF, TDS or income tax, professional tax and recurring employee-side deductions. CTC can also contain employer PF, gratuity, insurance, variable pay or benefits that are not paid as monthly cash, so CTC divided by 12 can overstate gross monthly salary for some structures.

Source-backed comparison · checked 2026-09-23

Same CTC, different basic-pay shares

Why can two ₹12 lakh CTC offers show different monthly cash pay?

Common model: Two invented salary structures at ₹12 lakh annual CTC. Basic wage is modelled as 30% or 50% of monthly CTC; employee and employer PF each equal 12% of that modelled wage; employer PF is included in CTC. No wage ceiling, EPS adjustment, other benefits, TDS or professional tax is modelled.

Compared assumptions and calculated results
ScenarioInputCalculated result
30% modelled basic shareEmployee and employer PF ₹3,600 each per monthGross ₹96,400; cash before tax ₹92,800
50% modelled basic shareEmployee and employer PF ₹6,000 each per monthGross ₹94,000; cash before tax ₹88,000

The first scenario shows ₹4,800 more monthly cash before tax and ₹2,400 less employee PF contribution. This is a trade-off in these assumed structures, not a comparison of actual job offers.

Limits: The EPFO 12% rate is a general rule with exceptions and a wage ceiling; whether contributions use higher wages, how EPS is allocated and what CTC includes depend on actual payroll terms. Net pay requires FY-specific income tax, state professional tax and all other deductions. Obtain both offer breakups and a real payslip before making a decision.

Published inputs and dates

CTC-to-take-home checks across salary offers

Use the same fields to compare Rs 6 lakh, Rs 10 lakh, Rs 15 lakh or another annual CTC. The result is strongest when basic pay, PF, monthly TDS and deductions come from the actual offer letter or payslip.

  • CTC can include employer costs that are not paid as monthly cash salary.
  • Employee PF, TDS, professional tax and other deductions reduce take-home pay.
  • Bonus, variable pay, insurance and gratuity treatment varies by employer structure.
  • Compare offers using monthly in-hand pay as well as total annual CTC.

Formula used

Annual gross salary = annual CTC minus employer PF only when employer PF is included in CTC. Monthly in-hand = annual gross/12 minus employee PF, user-entered professional tax, estimated monthly income tax and other monthly deductions. Every result is labelled monthly or annual.

Example calculation

For ₹12,00,000 annual CTC, 50% basic, employer PF included, 12% PF, new regime FY 2026-27, ₹200 monthly professional tax and no other deductions: employer PF is ₹72,000 a year, so gross salary is ₹11,28,000 a year or ₹94,000 a month. Employee PF is ₹6,000 a month and the modelled income tax is ₹0. Monthly take-home is ₹94,000 − ₹6,000 − ₹200 = ₹87,800. This is a worked model example, not a payroll quote.

Important assumptions

The assumptions below describe the Quick calculator and its examples. The additional planner has its own visible method, input limits and assumptions, also included in its downloads.

  • Annual CTC is entered in rupees and monthly outputs divide annual values by 12.
  • Employer PF is removed from CTC only when the user confirms it is included.
  • Employee PF is estimated from the selected basic-pay percentage and employee rate.
  • Professional tax is user-entered because it is state-specific.
  • Income tax uses the selected financial year and regime; surcharge above ₹50 lakh is excluded from this model.
  • Variable pay and employer benefits not entered are not modelled.

Common mistakes to avoid

  • Treating CTC/12 as cash gross when CTC includes employer PF or other employer costs.
  • Selecting an assessment year as though it were the salary-earning financial year.
  • Assuming one professional-tax amount applies nationwide.
  • Comparing an annual CTC with a monthly take-home without reconciling units.
  • Ignoring variable pay, gratuity, insurance or one-time deductions in the offer letter.

CTC, gross salary and in-hand pay are different layers

CTC is the employer's annual cost. Gross salary is cash salary before employee deductions after employer-side components modelled here. In-hand salary is gross after employee PF, tax, professional tax and other deductions. The calculator keeps all three visible.

FY 2026-27 and AY 2027-28

Salary earned from April 2026 through March 2027 belongs to FY 2026-27 and is assessed in AY 2027-28. The calculator applies the chosen FY rules and displays its matching AY next to the selector.

Source and Methodology

The estimate uses the selected financial year, regime and entered deductions. PF is modelled from the entered basic-pay percentage and PF rate; this may differ from an employer's capped PF wage or payroll policy. The breakup separates employer PF from employee deductions and labels annual and monthly amounts. Check the modelled components against your offer letter and payslip before using the take-home estimate in a budget.

Calculation version: 2026-08-17.1 · Facts checked: 2026-08-17

Next review trigger: Union Budget or Finance Act tax change, EPF rule change, or salary-engine formula change.

What parts of CTC may not become monthly in-hand salary?

When employer PF is included in CTC, the calculator removes its modelled contribution before estimating monthly gross cash salary. Gratuity accrual, insurance, variable bonuses and other non-cash or deferred components are not automatically separated. Use the fixed-pay component from your offer letter and check the employer-PF setting; use the salary cash planner for bonus timing and job-switch cash flow.

  • Basic salary: the fixed salary component used for several payroll calculations.
  • HRA: a salary component that may be part of gross pay; income-tax exemption depends on eligibility and regime rules.
  • Employee PF: deducted from salary where applicable and therefore reduces monthly take-home.
  • Employer PF: an employer-side contribution that may be included in CTC but is not monthly take-home cash.
  • Gratuity: often shown as a CTC cost or accrual; it is not normally a monthly cash payment to the employee.
  • Professional tax: a state-specific payroll deduction where applicable.
  • TDS: payroll withholding based on estimated taxable income, declarations and the selected tax regime.

Why the tax-regime comparison belongs in the salary journey

Choose a supported financial year and switch between old and new regimes to compare estimated income tax and monthly take-home. The quick calculator computes tax from salary and the entered deductions; it does not ask you to enter monthly TDS. HRA and eligible deduction inputs affect the old-regime estimate. Actual payroll withholding can differ because of prior income, declarations, bonus timing and employer adjustments; reconcile it with your payslip and Form 16.

Related calculators and guides

Explore the next step with: 8th Pay Commission hub covering fitment factor, DA merger and status, new gratuity rules 2026 guide covering the 1-year vs 5-year rule, gratuity calculator, 8th Pay Commission fitment-factor scenario calculator.

Calculator Facts

TopicRupeeKit explanation
Year mappingFY 2026-27 salary is assessed in AY 2027-28
CTC reconciliationEmployer PF is removed only when the user confirms it is included in annual CTC
Monthly take-homeGross monthly pay minus employee PF, estimated TDS, professional tax and other deductions
Professional taxState-specific, user-entered and settable to zero
Unit controlBreakup labels distinguish monthly equivalents from annual amounts

FAQs

Is CTC the same as annual gross salary?

Not necessarily. CTC can include employer PF, gratuity, insurance or other employer costs that are not paid as monthly cash. This calculator explicitly subtracts employer PF when you say it is included; verify other components against the offer letter.

Which tax year should I choose for salary earned in FY 2026-27?

Choose FY 2026-27, which is assessed in AY 2027-28. The labels show both years together to prevent assessment-year and financial-year confusion.

Is professional tax always ₹200 per month?

No. Professional tax is state-specific and may not apply in every state or at every income level. Enter the amount from your payslip or set it to zero; the default is only an editable example.

Why can actual take-home differ from this result?

Variable pay, bonus timing, gratuity, insurance, employer-specific allowances, PF wage rules, declarations, surcharge, marginal relief, payroll rounding and one-time deductions can change the payslip. Use actual offer-letter and payslip values where possible.

Does the calculator mix monthly and annual values?

No. The summary cards are explicitly monthly. The breakup toggle labels monthly CTC equivalent and monthly gross when monthly is selected, and annual CTC and annual gross when annual is selected.

Does HRA increase in-hand salary?

HRA can be part of gross salary and therefore part of monthly cash pay, but its tax treatment is separate. HRA exemption eligibility depends on rent, salary, location and the applicable tax-regime rules.

Is gratuity deducted from my monthly salary?

An employer may show gratuity as part of CTC without paying that amount as monthly cash. Whether and when gratuity becomes payable depends on the applicable employment and gratuity rules, so use the employer's salary structure rather than treating it as a routine employee-side monthly deduction.

Why should I compare tax regimes before estimating in-hand salary?

The regime choice changes the calculator's estimated income tax and monthly take-home. Keep the same salary inputs, switch regimes and enter the deductions you actually qualify for. The result is an estimate; payroll TDS may also reflect income and deductions outside this model.