CTC minus employer PF, your PF, professional tax and income tax, split into 12 months.
Basic defaults to 50% of CTC. Tax uses FY 2026-27 slabs and the ₹75,000 standard deduction. Bonuses are treated as paid out.
12 lakh
Tax regime
PF on ₹15,000 cap?
2.4 thousand₹2,400 in Karnataka, ₹2,500 in Maharashtra, nil in Delhi.
In-hand per month
₹87,800
₹10,53,600 a year after PF, professional tax and income tax.
Next: HRA exemptionHow much of your HRA is tax-free.
Cost to company (CTC) is everything your employer spends on you, not what reaches your bank account. The tool takes off the employer's provident fund contribution (12% of basic), your own 12% PF, professional tax and income tax. Many employers pay PF on only the first ₹15,000 of basic, which means ₹1,800 a month each. If your payslip shows that, set basic to ₹15,000 to match.
Basic pay matters more since the labour codes took effect on 21 November 2025. Wages for PF and gratuity have to be at least half of total pay, so a lot of companies have raised basic. A higher basic means more goes into PF and gratuity, which is still your money, and a bit less comes home each month. Professional tax is a state tax capped at ₹2,500 a year. Maharashtra charges ₹200 a month and ₹300 in February, and some states charge none.
Income tax uses the FY 2026-27 slabs. Under the new regime, a salary up to ₹12.75 lakh after PF pays no tax because of the rebate. To check the tax yourself, use the income tax calculator. If you rent and might use the old regime, see the HRA calculator. Your basic also sets your future gratuity, and banks size loans from net pay in the loan eligibility calculator.
Ready-made tables for 5 to 25 LPA, old vs new regime: salary tables.
in-hand =CTC − employer PF − employee PF − professional tax − income taxRead the full methodologyFound an error? Contact us
Each example is worked out by the same code as the calculator above.
Basic ₹6 lakh. Employer PF of ₹72,000 leaves gross pay of ₹11,28,000. Employee PF is another ₹72,000 and professional tax ₹2,400. Taxable income after the ₹75,000 deduction is ₹10,53,000, under ₹12 lakh, so the rebate leaves no tax. In-hand: ₹10.54 lakh a year, or ₹87,800 a month.
Basic ₹10 lakh. Employer and employee PF are ₹1.2 lakh each. Gross pay is ₹18.8 lakh and taxable income ₹18.05 lakh. New-regime tax with cess is ₹1,67,440. In-hand after ₹2,400 professional tax: ₹15.9 lakh a year, or ₹1,32,513 a month.
The frame shows the tool only.
<iframe src="/embed/salary" title="Salary in-hand" width="100%" height="720" style="border:0;max-width:42rem" loading="lazy"></iframe>With basic at 50% of CTC, PF on full basic, ₹2,400 professional tax and the new regime, about ₹87,800 a month. Income tax is nil because taxable income stays under ₹12 lakh.
CTC includes the employer's PF and sometimes gratuity and bonus. Your own PF, professional tax and income tax are then taken out of what is left.
Under the new regime, salaried income up to ₹12.75 lakh pays no tax thanks to the ₹75,000 standard deduction and the 87A rebate.
Switch between them on the calculator. The old regime only wins with large deductions such as HRA, home-loan interest and full 80C.
About ₹90,000 a month with 40% basic and full PF, and no income tax under the new regime. A higher basic lowers it slightly because more goes into PF.
Usually yes. It appears in CTC but goes to your PF account, not your bank account.
It is set by each state and capped at ₹2,500 a year. Maharashtra and Karnataka charge close to that cap. Some states, such as Delhi, charge nothing.