CTC to Take-Home Salary Calculator
Estimate monthly and annual in-hand salary after PF, HRA, professional tax and income tax. Salary structures vary, so every major assumption is editable.
Assumptions and limitations
- Employer PF and annual gratuity accrual are treated as CTC components, not monthly gross salary.
- HRA exemption is used only in the old-regime tax estimate; the new regime generally does not allow it.
- Employee PF is treated as a Section 80C eligible deduction, capped with other 80C items at ₹1.5 lakh.
- State professional tax, bonuses, special allowances and reimbursements differ by employer and are editable.
Illustrative projections only
SmartFintool provides mathematical calculations and educational information. It does not provide personalised investment advice. Mutual fund returns are not guaranteed and tax rules can change.
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₹12.00 Lakh
₹4.80 Lakh annual basic
₹2.40 Lakh annual HRA
₹1.80 Lakh
₹2.40 K
₹0.00
Excludes employee PF
80CCD(2)
Estimated Monthly Take-Home
₹88.28 K
₹10.59 Lakh per year
Annual gross
₹11.19 Lakh
Employee PF
₹57.60 K
Income tax
₹0.00
Professional tax
₹2.40 K
| CTC | ₹12,00,000 |
|---|---|
| Employer PF contribution | −₹57,600 |
| Gratuity accrual included in CTC | −₹23,077 |
| Gross salary | ₹11,19,323 |
| HRA exemption (not used in new regime) | ₹1,32,000 |
| Taxable income | ₹10,44,323 |
Why is in-hand salary lower than CTC?
CTC is the employer’s total annual cost. It includes contributions that never reach your monthly bank account, such as employer PF, employer NPS and gratuity accrual. Your in-hand salary is then reduced further by employee PF, income tax, professional tax and other payroll deductions.
Default EPF is set to 12% employee and 12% employer, but actual structures can differ for international workers, capped wages, private trusts or organisations with different EPF applicability.
Frequently Asked Questions
Does CTC equal in-hand salary?
No. CTC includes employer PF, employer NPS, gratuity accrual, bonuses and other benefits. In-hand salary is after employee PF, tax, professional tax and other deductions.
Can this calculator match every payslip?
No. Salary structures vary by employer, state and CTC policy. Use it as an estimator and edit the assumptions to match your offer letter or payslip.