Free tool · India · FY 2026-27

Work out your in-hand salary from your CTC.

Enter your CTC and see what reaches your bank account each month under both tax regimes, with every deduction shown.

On a 10 LPA CTC with basic at 50%, in-hand is about INR 71,121 a month under the new regime and INR 64,778 under the old regime with no other deductions.
Employer PF and the gratuity provision sit inside the CTC but never reach your payslip.
Under the new regime there is no income tax on taxable income up to INR 12 lakh, about INR 12.75 lakh of salary after the INR 75,000 standard deduction.
Your own PF, professional tax and income tax with cess come off every month.

Yearly CTC (INR)

INR 10,00,000 a year, 10 LPA.

Basic pay (% of CTC)

Your offer letter or payslip shows it. 50% is used if you leave it.

Variable pay inside the CTC (INR a year)

A performance bonus or incentive counted in the CTC. Leave 0 if there is none.

Joining bonus (INR, one time, outside the CTC)

Taxed as salary in the year it is paid. Check whether it must be repaid if you leave early.

Provident fund (PF)

Employee and employer each pay 12%. The statutory ceiling is INR 25,000 of basic a month; many employers use the full basic.

Gratuity inside the CTC

Most CTCs include a gratuity provision of 4.81% of basic. You receive gratuity only when you leave after qualifying service.

State you work in (professional tax)

Not every state charges professional tax. If yours is not listed, check your payslip.

Old regime deductions (optional)

Section 123 investments beyond PF (INR a year)

PPF, ELSS, life insurance, children's tuition fees. Section 123 (the old 80C) allows INR 1,50,000 in all, your PF included.

Other old regime deductions (INR a year)

Rent allowance exemption, health insurance premium, home loan interest. The new regime allows none of these.

Estimated in-hand salary, FY 2026-27

New regimeMore in hand

INR 71,121

a month, from fixed pay

Old regime

INR 64,778

a month, from fixed pay

The new regime leaves INR 76,118 more a year.

From gross pay to in-hand, each month

Monthly salary breakdown under both regimes
Line	New	Old
Gross salaryBasic plus allowances, fixed pay only	INR 76,329	INR 76,329
Employee PFYour 12%, saved in your PF account	-INR 5,000	-INR 5,000
Professional taxYearly amount spread over 12 months	-INR 208	-INR 208
Income tax and cessDeducted monthly as TDS	INR 0	-INR 6,343
In-hand	INR 71,121	INR 64,778

How the income tax is worked out

Income tax for the year under both regimes
Line	New	Old
Gross salary for the year	INR 9,15,950	INR 9,15,950
Standard deduction	-INR 75,000	-INR 50,000
Professional taxDeductible in the old regime only	INR 0	-INR 2,500
Section 123 (PF and investments)Old regime only, up to INR 1,50,000	INR 0	-INR 60,000
Other deductionsOld regime only	INR 0	INR 0
Taxable income	INR 8,40,950	INR 8,03,450
Tax at slab rates	INR 24,095	INR 73,190
Rebate under section 156Includes marginal relief, where it applies	-INR 24,095	INR 0
Surcharge	INR 0	INR 0
Cess at 4%	INR 0	INR 2,928
Income tax for the year	INR 0	INR 76,118

An estimate from the rules for FY 2026-27, rounded to the rupee. Your employer's payroll, the exact salary structure and any declarations you make can change the figures. This is not tax advice.

Free, with no account. The figures are worked out in this browser from what you enter and are sent nowhere.

Every line explained

Where a CTC goes before it reaches you.

An offer letter states one number. The payslip splits it into these lines, and only the last one is yours to spend each month.

CTC: Cost to company: everything the employer spends on you in a year, including money that never reaches your bank account.
Basic pay: The fixed core of your salary. PF and gratuity are worked out from it, so a higher basic means more PF and gratuity and a little less in hand now.
Allowances: House rent allowance, special allowance and similar fixed pay. They are taxable in the new regime; in the old regime part of the rent allowance can be exempt.
Employer PF: The employer's 12% of your PF wages. It sits inside the CTC and goes to your PF and pension account, not to your payslip.
Gratuity provision: Money set aside for gratuity, usually 4.81% of basic. You receive gratuity only when you leave after qualifying service.
Variable pay: A bonus or incentive counted in the CTC and paid if targets are met, often once or twice a year. It is taxed when it is paid.
Joining bonus: A one-time payment, usually outside the CTC, taxed as salary in the year you receive it.
Gross salary: What the payslip shows before deductions: the CTC less employer PF, gratuity and any variable pay not paid out.
Employee PF: Your own 12% of PF wages, deducted every month and saved in your PF account. It is still your money, just not in hand.
Professional tax: A state tax on employment, at most INR 2,500 a year. Some states do not charge it.
Income tax and cess: Your yearly tax, plus 4% cess, deducted in instalments every month as TDS.
In-hand: What reaches your bank account: gross salary less employee PF, professional tax and income tax.

Tax year 2026-27

The new and old regimes for FY 2026-27.

FY 2026-27 runs from 1 April 2026 to 31 March 2027. It is the first year under the Income-tax Act, 2025, and the Finance Bill, 2026 kept the rates of the year before.

New regime (the default)

New regime income tax slabs for FY 2026-27
Taxable income	Rate
Up to INR 4 lakh	Nil
INR 4 lakh to INR 8 lakh	5%
INR 8 lakh to INR 12 lakh	10%
INR 12 lakh to INR 16 lakh	15%
INR 16 lakh to INR 20 lakh	20%
INR 20 lakh to INR 24 lakh	25%
Above INR 24 lakh	30%

Standard deduction of INR 75,000. A rebate of up to INR 60,000 under section 156 cancels the tax when taxable income is at most INR 12 lakh, and marginal relief keeps the tax just above that line from exceeding the income above it. No deduction for professional tax, PF or other investments under section 202.

Old regime (if you opt out)

Old regime income tax slabs for FY 2026-27
Taxable income	Rate
Up to INR 2.5 lakh	Nil
INR 2.5 lakh to INR 5 lakh	5%
INR 5 lakh to INR 10 lakh	20%
Above INR 10 lakh	30%

Standard deduction of INR 50,000, plus professional tax under section 19, up to INR 1.5 lakh under section 123 (your PF counts towards it) and other deductions such as a rent allowance exemption. A rebate of up to INR 12,500 applies only when taxable income is at most INR 5 lakh. Slabs shown are for residents under 60.

Both regimes add a 4% health and education cess to the tax. A surcharge starts above INR 50 lakh of income (10%, then 15% above INR 1 crore and 25% above INR 2 crore, with 37% above INR 5 crore in the old regime only), with marginal relief at each step, as set out in the memorandum to the Finance Bill, 2026. The calculator applies all of these.

Provident fund and gratuity

Two deductions you get back later.

PF and gratuity lower your in-hand pay today, but both are saved for you or paid to you later.

PF: 12% each, and the INR 25,000 ceiling

You and your employer each pay 12% of PF wages, which for most salaries means basic pay. The statutory wage ceiling rose from INR 15,000 to INR 25,000 a month on 17 September 2026, according to the EPFO announcement. An employer may contribute on your full basic or only up to the ceiling, which is INR 3,000 a month each. Of the employer's share, 8.33% of wages up to the ceiling goes to the pension scheme and the rest to your PF account.

Gratuity: why 4.81% of basic

Gratuity is 15 days' wages for every completed year of service, counting 26 working days in a month. Fifteen twenty-sixths of one month's basic, spread over twelve months, is 4.81% of basic, which is what most CTCs set aside. It is paid when you leave after five years of continuous service, or after one year on a fixed-term contract, according to the Ministry of Labour's FAQs on the labour codes. Since 21 November 2025, when allowances and other excluded pay come to more than half of your total pay, the excess counts as wages for gratuity, so a low basic can mean a larger provision than 4.81% of basic.

Professional tax

What each state charges on a salary.

Professional tax is set by the state and capped at INR 2,500 a year by the Constitution. These are the schedules the calculator uses. Tamil Nadu's is set by each local body; the Chennai rates are shown.

Professional tax on salaries by state
State	Professional tax on salary
Gujarat	By monthly salary, up to INR 11,999: nil; INR 12,000 and above: INR 200. Source
Karnataka	By monthly salary, up to INR 24,999: nil; INR 25,000 and above: INR 200. INR 300 in February in the top band, INR 2,500 a year. Source
Maharashtra (men)	By monthly salary, up to INR 7,500: nil; INR 7,501 to INR 10,000: INR 175; INR 10,001 and above: INR 200. INR 300 in February in the top band, INR 2,500 a year. Source
Maharashtra (women)	By monthly salary, up to INR 25,000: nil; INR 25,001 and above: INR 200. INR 300 in February in the top band, INR 2,500 a year. Source
Tamil Nadu (Chennai rates)	By half-year's salary, up to INR 21,000: nil; INR 21,001 to INR 30,000: INR 180; INR 30,001 to INR 45,000: INR 425; INR 45,001 to INR 60,000: INR 930; INR 60,001 to INR 75,000: INR 1,025; INR 75,001 and above: INR 1,250. Source
Telangana	By monthly salary, up to INR 15,000: nil; INR 15,001 to INR 20,000: INR 150; INR 20,001 and above: INR 200. Source
West Bengal	By monthly salary, up to INR 10,000: nil; INR 10,001 to INR 15,000: INR 110; INR 15,001 to INR 25,000: INR 130; INR 25,001 to INR 40,000: INR 150; INR 40,001 and above: INR 200. Source

The calculator compares your fixed monthly gross salary with these bands. In the old regime the professional tax you pay is deductible from taxable income; in the new regime it is not.

Variable pay and joining bonus

Lump sums are taxed when they are paid.

A bonus is salary for tax purposes. It raises your taxable income for the year it is paid, which can push you past the rebate line.

The calculator works out your monthly in-hand on fixed pay alone, then shows variable pay and a joining bonus separately, after the extra income tax they add. Set the payout percentage if you expect less than the full variable amount. Variable pay counted inside a CTC is not certain, so a fixed-pay comparison is the safer way to compare two offers.

Worked examples

Two CTCs, step by step.

Both use basic at 50% of CTC, PF at 12% of full basic and gratuity inside the CTC.

6 LPA in Maharashtra

CTC INR 6,00,000, with basic pay at 50%: INR 3,00,000 a year.
Employer PF at 12% of basic is INR 36,000 and the gratuity provision at 4.81% is INR 14,430. Both stay inside the CTC.
That leaves a gross salary of INR 5,49,570, or INR 45,798 a month.
Each month, INR 3,000 of employee PF and about INR 208 of professional tax come off.
New regime taxable income is INR 4,74,570 after the INR 75,000 standard deduction. That is within INR 12 lakh, so the rebate cancels the tax.
Monthly in-hand under the new regime: INR 42,590. Under the old regime: INR 42,590.

15 LPA in Karnataka, with INR 1.5 lakh variable pay

CTC INR 15,00,000, with basic pay at 50%: INR 7,50,000 a year.
Employer PF at 12% of basic is INR 90,000 and the gratuity provision at 4.81% is INR 36,075. Both stay inside the CTC.
Variable pay of INR 1,50,000 is paid separately, so fixed gross salary is INR 12,23,925, or INR 1,01,994 a month.
Each month, INR 7,500 of employee PF and about INR 208 of professional tax come off.
New regime taxable income for the year is INR 12,98,925. Tax with cess is INR 77,833.
Monthly in-hand under the new regime: INR 94,286. Under the old regime: INR 82,419.

Without the variable pay, new regime taxable income would be under INR 12 lakh and tax-free. The INR 1.5 lakh pushes it over the line, so about INR 72,167 of it reaches you after tax.

By CTC

In-hand salary where the rules change.

These are the CTCs at which a rule starts or stops applying, or where a figure matters at that level alone. Each has its own page with the full breakdown and what changes there. Assumes basic at 50%, PF on full basic, gratuity inside the CTC and INR 2,500 a year of professional tax. For any other CTC, use the calculator above.

Monthly in-hand salary by CTC under both regimes
CTC	New regime, a month	Old regime, a month
3 LPA in-hand salaryNo tax for either regime to cancel, so your state sets the only tax	INR 21,191	INR 21,191
4 LPA in-hand salaryThe new PF ceiling covers all of your basic pay	INR 28,324	INR 28,324
5 LPA in-hand salaryThe old regime's INR 5 lakh line counts taxable income, not CTC	INR 35,457	INR 35,457
6 LPA in-hand salaryBasic pay reaches the PF ceiling, and neither regime charges tax	INR 42,590	INR 42,590
7 LPA in-hand salaryThe old regime's rebate runs out, and the regimes part ways	INR 49,722	INR 47,830
8 LPA in-hand salaryA full section 123 no longer brings the old regime back to zero tax	INR 56,855	INR 53,479
10 LPA in-hand salaryHow far a raise goes before tax, and the band where a raise pays less	INR 71,121	INR 64,778
12 LPA in-hand salaryThe highest of these levels the new regime's rebate covers	INR 85,387	INR 76,077
15 LPA in-hand salaryPast the rebate, where the old regime needs the least to catch up	INR 1,00,300	INR 91,019
20 LPA in-hand salaryWhether rent can carry the old regime depends on your city	INR 1,29,330	INR 1,15,556
25 LPA in-hand salaryYour PF alone fills the section 123 limit	INR 1,56,126	INR 1,40,093
30 LPA in-hand salaryBoth regimes reach 30%, so the gap stops growing	INR 1,80,686	INR 1,63,851

Sources

Where every rule comes from.

Rules checked on 22 October 2026 for FY 2026-27. They are rechecked after each Union Budget and each change to the PF ceiling or a state schedule. Figures are estimates; rules and payroll practice vary.

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Questions

Common questions.

How do I calculate in-hand salary from CTC?

Take the employer's PF and the gratuity provision out of the CTC to get gross salary. Then subtract your own PF, professional tax and income tax with cess. Divide the fixed part by 12 for the monthly figure, and add variable pay or a joining bonus when it is paid, after the extra tax it brings.

What is 3.5 CTC in hand salary?

On a CTC of INR 3.5 lakh with basic at 50%, PF at 12% of basic, gratuity inside the CTC and INR 200 a month of professional tax, in-hand is about INR 24,757 a month under the new regime, with no income tax under either regime.

What is the in-hand salary for 4.2 LPA?

With the same assumptions, a 4.2 LPA CTC gives about INR 29,750 a month in hand under the new regime, with no income tax under either regime. A different basic share, PF choice or state changes the figure, so enter your own structure above.

Is income up to INR 12 lakh tax-free in FY 2026-27?

Under the new regime, a resident individual whose taxable income is at most INR 12 lakh pays no income tax, because the section 156 rebate of up to INR 60,000 cancels it. For a salaried person that is about INR 12.75 lakh of gross salary after the INR 75,000 standard deduction. Just above INR 12 lakh, marginal relief limits the tax to the income above that line.

Which tax regime should I choose?

The calculator shows both side by side and how much more the old regime would need in deductions to catch up. Which one suits you depends on the deductions you can actually claim, so check your own figures, and a tax professional if your situation is complex.

Why is my in-hand salary lower than CTC divided by 12?

Because the CTC includes money you do not receive each month: the employer's PF, the gratuity provision and any variable pay. Your own PF, professional tax and income tax then come off the gross salary.

Does the calculator count HRA exemption?

The new regime allows no rent allowance exemption. For the old regime, add the exempt amount you expect to claim under other old regime deductions and the calculator includes it.

Does this calculator store what I enter?

No. It runs in your browser, needs no account, and sends your salary nowhere.

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