What is the difference between CTC and in-hand salary?

CTC is the total annual amount the employer spends on you — basic, allowances, bonus, employer EPF, gratuity, and benefits. In-hand is what reaches your bank after employee EPF, Professional Tax, and TDS. In-hand is usually 70-85% of CTC.

How is EPF deducted from salary?

EPF is 12% of basic salary, deducted monthly. If basic exceeds ₹15,000, EPF can be statutorily capped at ₹1,800/month. Most Indian employers apply this cap.

How is TDS calculated on salary?

Employer estimates your annual tax (old vs new regime, with HRA, 80C declarations) and divides by 12 for monthly TDS.

Is annual bonus part of in-hand salary?

No. Bonus is usually paid annually or quarterly. The calculator excludes it from monthly gross.

Why does my actual salary differ from this calculator?

Variable pay, food coupons, NPS, insurance premiums, and other CTC line items vary by employer. This calculator provides a reliable estimate based on standard deductions.

Updated Jul 2026 · India

In-Hand Salary Calculator

Convert your annual CTC to monthly take-home salary instantly. Includes EPF, Professional Tax, and TDS deductions.

Calculate Your Take-Home Salary

Annual CTC (₹)

Basic Salary (% of CTC)

Annual Bonus Included in CTC (₹)

Monthly Professional Tax (₹)

Monthly Estimated TDS (₹)

Cap EPF to ₹1,800/month

CTC vs Gross vs In-Hand — Decoded

CTC (Cost to Company) is the full annual cost your employer incurs — basic, HRA, special allowance, employer EPF, gratuity, group insurance, and any bonus. It's the headline number on your offer letter.

Gross Salary is CTC minus bonus, gratuity, and employer EPF — the regular monthly amount before any tax/deductions.

In-Hand Salary is gross minus employee EPF (12% of basic, capped at ₹1,800), Professional Tax (state-dependent, max ₹200), and monthly TDS. This is what hits your bank account.

How the Calculation Works

Step 1: Subtract annual bonus from CTC and divide by 12 → monthly gross.
Step 2: Calculate basic as a % of monthly gross.
Step 3: EPF = 12% of basic, capped at ₹1,800 if the box is ticked.
Step 4: Deduct EPF, Professional Tax, and TDS from monthly gross.
Result: Monthly in-hand salary credited to your account.

Typical Salary Breakup (CTC ₹12 LPA Example)

Component	Monthly (₹)	Annual (₹)
Basic (50% of CTC)	45,833	5,50,000
HRA / Allowances	45,833	5,50,000
Annual Bonus	—	1,00,000
Monthly Gross	91,667	11,00,000
(−) EPF (capped)	1,800	21,600
(−) Professional Tax	200	2,400
(−) TDS (estimated)	5,000	60,000
In-Hand Salary	84,667	10,16,000

Frequently Asked Questions

CTC vs in-hand — what's the difference?

CTC is total annual cost to company. In-hand is what lands in your bank after EPF, PT, and TDS. Expect 70-85% of CTC.

How is EPF deducted?

12% of basic salary monthly, typically capped at ₹1,800 if basic exceeds ₹15,000.

What is Professional Tax?

State-level tax up to ₹200/month. Karnataka, Maharashtra, TN, WB, Telangana levy it; Delhi, UP, Haryana don't.

How is monthly TDS calculated?

Employer estimates annual tax (old or new regime) and divides by 12. Use our Income Tax Calculator for projection.

Is bonus part of monthly salary?

No. Bonus is usually paid annually or quarterly. Excluded from monthly gross.

Why does actual salary slip differ?

Variable pay, food coupons, NPS, insurance, and other CTC line items vary by employer. This is a reliable estimate.

Official Sources & References

This Salary Calculator Calculator uses formulas, rates, and rules published by these authoritative Indian government and regulatory bodies. Always cross-check with the official source before making financial decisions.

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