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In Hand Salary Calculator

Convert your CTC to monthly take-home salary. Includes PF, professional tax, income tax under old & new regime.

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How to Calculate Your In-Hand Salary from CTC

Use our in hand salary calculator to see exactly what lands in your bank account. When you get a job offer with a CTC of, say, ₹6 lakh per annum, the number that actually reaches you every month is quite different. Your CTC includes everything your employer spends on you — basic salary, house rent allowance, provident fund contributions, insurance, and sometimes even food coupons. Your in-hand salary is what remains after all deductions.

Understanding this difference matters, especially when you’re planning a budget, applying for a loan, or comparing two job offers. A ₹10 lakh CTC doesn’t mean ₹83,333 in your account every month. Depending on your tax regime and deductions, your actual take-home could be anywhere between ₹62,000 and ₹72,000.

What Gets Deducted from Your CTC?

Your salary goes through several layers of deduction before it reaches you. Here’s what typically comes out:

  • Employee Provident Fund (EPF): 12% of your basic salary is deducted and deposited into your PF account. Your employer matches this contribution. While this is technically your money, you can’t access it freely until retirement or resignation.
  • Professional Tax: A state-level tax that most states levy, capped at ₹2,500 per year. Not all states charge it — Delhi, for example, doesn’t.
  • Income Tax (TDS): Your employer deducts tax at source based on your projected annual income and the tax regime you choose. This is usually the single largest deduction.

Old Regime vs. New Regime — Which Gives You More Take-Home?

India currently has two tax regimes running in parallel, and choosing the right one can make a genuine difference to your monthly salary.

The new regime has lower slab rates and a ₹75,000 standard deduction, but you can’t claim most exemptions like HRA, 80C, or home loan interest. It’s simpler and works well if you don’t have significant investments or deductions.

The old regime has higher slab rates, but if you’re paying rent in a metro city (HRA exemption), investing ₹1.5 lakh under Section 80C, and have health insurance (80D), those deductions can bring your taxable income down substantially. For someone with ₹3–4 lakh in total deductions, the old regime often results in lower tax.

There’s no universal answer. It depends on your specific salary structure and how much you invest. That’s why this calculator lets you switch between both and compare instantly.

Typical Salary Structures in India

Most companies in India follow a similar salary structure. Here’s what a typical CTC breakup looks like:

Component% of CTCFor ₹6L CTC
Basic Salary40–50%₹2,40,000
HRA20–25%₹1,20,000
Special AllowanceRemaining₹1,11,200
Employer PF12% of basic₹28,800

In-Hand Salary for Common CTC Ranges

Here’s a quick reference for approximate monthly take-home salaries under the new tax regime (no additional deductions):

Annual CTCApprox. Monthly In-HandMax EMI Capacity
₹3,00,000~₹22,000~₹8,800
₹5,00,000~₹36,000~₹14,400
₹8,00,000~₹54,000~₹21,600
₹10,00,000~₹66,000~₹26,400
₹15,00,000~₹95,000~₹38,000
₹20,00,000~₹1,20,000~₹48,000

EMI capacity is estimated at 40% of monthly in-hand salary. Actual loan eligibility depends on your credit score, existing debts, and lender policies.

How Your Salary Affects Loan Eligibility

Every bank and loan app looks at your net monthly income — not your CTC — when deciding how much to lend you. This is exactly why knowing your in-hand salary matters beyond just budgeting.

If your monthly take-home is ₹40,000 and you have no existing EMIs, most lenders will consider you eligible for EMIs up to ₹16,000–20,000. That translates to a personal loan of roughly ₹4–5.5 lakh at 12% interest for 3 years.

Want to see exactly how much you qualify for? Use our Loan Eligibility Calculator or compare loan apps to find the best rates for your income bracket.

Tips to Increase Your Take-Home Salary

  • Choose the right tax regime. Run the numbers for both regimes before the financial year starts. Many people leave money on the table by not switching.
  • Maximise Section 80C investments. If you’re on the old regime, investing ₹1.5 lakh in ELSS, PPF, or NPS can save you up to ₹46,800 in tax.
  • Claim HRA exemption properly. If you pay rent, ensure your employer accounts for it in TDS calculations. Keep rent receipts and your landlord’s PAN (for rent above ₹1 lakh/year).
  • Opt for flexible benefits. Some companies let you restructure your CTC into food coupons, car leases, or telephone reimbursements — these are either tax-free or taxed at a lower rate.
  • Don’t ignore NPS. Under the old regime, NPS gives an additional ₹50,000 deduction under 80CCD(1B), over and above the ₹1.5 lakh 80C limit.

Frequently Asked Questions

Common questions about salary calculator

Your in-hand salary is the amount you actually receive after all deductions. Start with your annual CTC, then subtract employer PF contribution (12% of basic), employee PF contribution (12% of basic), professional tax (typically ₹2,400/year), and income tax. Divide the result by 12 to get your monthly take-home salary. Our calculator does all of this instantly.
CTC (Cost to Company) is the total amount your employer spends on you, including basic salary, HRA, PF contributions, insurance, and other perks. In-hand salary (also called take-home salary or net salary) is the amount you actually receive in your bank account every month after PF, professional tax, and income tax deductions.
Under the new tax regime (FY 2024-25), on a ₹10 lakh CTC with standard deductions, your approximate annual tax would be around ₹54,600. Under the old regime, if you claim deductions under 80C (₹1.5 lakh) and HRA, your tax could be significantly lower. The actual amount depends on your specific salary structure and deductions.
Under the new tax regime (FY 2024-25), salaried employees get a standard deduction of ₹75,000. Under the old regime, the standard deduction is ₹50,000. This is automatically deducted from your gross salary before calculating taxable income. You don't need to show any proof or bills for this deduction.
If you have significant deductions — home loan interest, HRA exemption, Section 80C investments totalling over ₹3–4 lakh — the old regime might save you more tax. If you don't have many deductions, the new regime with its lower slab rates and ₹75,000 standard deduction is usually better. Use this calculator to compare both and see which one gives you a higher take-home salary.
Banks typically allow EMIs up to 40-50% of your net monthly income. So if your in-hand salary is ₹50,000, your maximum EMI capacity would be around ₹20,000-25,000. Based on this, you could be eligible for a personal loan of approximately ₹5-7 lakh at standard interest rates for a 3-year tenure. Use our Loan Eligibility Calculator for an exact estimate.
No, professional tax varies by state and is capped at ₹2,500 per year. Maharashtra charges ₹2,500/year for salaries above ₹10,000/month. Karnataka charges ₹200/month. Some states like Rajasthan and Delhi don't levy professional tax at all. This calculator uses ₹200/month (₹2,400/year) as a common estimate.
PF (Provident Fund) has two parts. Employee PF: 12% of your basic salary is deducted from your pay and deposited into your EPF account. Employer PF: Your employer also contributes 12% of your basic, but part of it goes to EPS (pension scheme). Both together build your retirement savings. The employee PF deduction reduces your in-hand salary.