CTC to In-Hand Salary: How to Work Out Your Monthly Take-Home in India
An offer letter says ₹13.56 lakh CTC. Divide by 12 and you'd expect ₹1.13 lakh a month. The first payslip says something closer to ₹1.03 lakh, and nobody explained the gap. CTC to in-hand salary walks through exactly where the money goes: employer PF, your PF, professional tax and income tax.
Steps
- Enter annual CTC, monthly basic pay, dearness allowance and HRA.
- Enter your state's professional tax, and tick EDLI or the admin charge if those are already included in your CTC.
- Read the monthly in-hand pay, PF, and income tax for the year.
The worked example on the page
The form opens with CTC ₹13,56,000, basic ₹50,000 and HRA ₹20,000, which comes to ₹1,03,100 a month in hand under the new regime. Here's the arithmetic:
- Monthly CTC: ₹1,13,000.
- Employer PF, on the ₹25,000 wage ceiling: 12% = ₹3,000. That's part of CTC but never reaches your account, so gross pay is ₹1,10,000.
- Your own PF, also 12% of ₹25,000: ₹3,000.
- Annual taxable income: ₹13,20,000 gross minus the ₹75,000 standard deduction = ₹12,45,000.
- Tax for the year, with marginal relief and 4% cess: ₹46,800, or ₹3,900 a month.
- In hand: ₹1,10,000 − ₹3,000 − ₹3,900 = ₹1,03,100.
Provident fund rules used
According to the page, from 17 September 2026 the PF wage ceiling is ₹25,000 a month. Both you and your employer contribute 12% of PF wages. The employer's 12% is split: 8.33% of wages up to the ceiling goes to the pension scheme (EPS), rounded to the nearest rupee, and the rest goes to EPF. For example, on PF wages of ₹25,000, EPS is ₹2,083 and employer EPF is the remaining ₹917.
EPS membership depends on your wages when you joined (or on 17 September 2026) being within the ceiling. If your employer puts the full 12% into EPF, untick EPS.
EDLI and PF admin charges are each 0.50% of wages up to the ceiling. Tick them only if your CTC already includes that cost.
Professional tax
Enter what your state deducts in a normal month. Some states charge a different amount in February; there's a separate field for that. Leave it blank if every month is the same. In the new regime, professional tax reduces in-hand pay but not taxable income. In the old regime it also reduces taxable income.
Old regime
The old regime uses its own slabs, a ₹50,000 standard deduction, annual professional tax, and deductions for deposits up to ₹1,50,000 (your own PF counts toward this). Age changes the nil band from 60 and again from 80.
Using it for an offer negotiation
Two offers: one with a higher CTC but a big variable bonus and PF on full basic, another slightly lower but with PF capped at the ceiling. Run both. Monthly in-hand is what pays rent; the PF difference is savings you'll get later, and a bonus is only real when paid. Seeing all three numbers separately makes the comparison honest.
Monthly tax vs TDS
The monthly tax shown is the year's tax divided by 12. Your employer's payroll may withhold different amounts in particular months, for example after you submit investment proofs.
Rules as of October 2026
Rules as of 27 October 2026. The page works out provident fund on the ₹25,000 ceiling, the professional tax you enter, and income tax for 2026-27. Salary structures, PF rules, professional tax by state and tax slabs all vary and change. Your employer's payslip is the final word; use this as an estimate.
Official sources:
Privacy
According to the page, your pay stays in the browser tab, and the page link only keeps the surrounding choices. Google ads appear on the page, as across the site.
FAQ
Why is the example's in-hand ₹1,03,100? ₹1,13,000 CTC minus ₹3,000 employer PF minus ₹3,000 employee PF minus ₹3,900 monthly tax.
Where do I enter professional tax? Your state's normal monthly amount, plus February if different.
Is the monthly tax the same as TDS? It's an average; payroll may vary month to month.
Does it handle the old regime? Yes.
Got an offer letter? Check the real monthly figure with CTC to in-hand salary.
— Alok Kumar Singh