What is CTC vs take home salary?

CTC (Cost to Company) is the total amount a company spends on you annually, including employer PF, gratuity, and other benefits. Take home salary is what you actually receive after all deductions like employee PF, professional tax, and income tax.

How is take home salary calculated?

Take Home = CTC − Employer PF − Gratuity (gross salary) − Employee PF − Professional Tax − Income Tax.

Which tax regime is better - new or old?

New regime (FY 2025-26) has lower slab rates with fewer deductions. Old regime allows deductions like HRA, 80C (₹1.5L), home loan interest etc. Compare both to see which gives lower tax for your situation.

Why is my take home less than CTC?

CTC includes employer costs like PF contribution (12% of basic) and gratuity (~4.81% of basic) that are not part of your in-hand salary. Additionally, employee PF, professional tax, and income tax are deducted from your gross salary.

What is professional tax?

Professional tax is a state-level tax on employment income. Most states charge ₹200/month (₹2,400/year) for salaries above ₹15,000/month. Some states like Gujarat and Rajasthan don't levy it.

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Take Home Salary Calculator

Calculate your monthly in-hand salary from CTC after PF, professional tax, and income tax deductions.

Annual CTC

₹1.00 L₹1.00 Cr

Basic Salary (% of CTC)

30%60%

Professional Tax (Annual)

₹0₹5,000

Employee EPF (12% of basic)

Employer PF (in CTC)

₹0₹50,000

Gratuity (in CTC)

₹0₹1.00 L

Tax Regime

Monthly Take Home

₹98,000

Annual Take Home

₹11.76 L

Annual Gross Salary

₹12.00 L

Monthly Salary Components

Basic₹50,000

HRA₹25,000

Special Allowance₹25,000

Gross Monthly₹1.00 L

Annual Deductions

Employee PF₹21,600

Professional Tax₹2,400

Income Tax + Cess₹0

Total Deductions₹24,000

Assumes HRA = 50% of basic (metro cities). Enter Employer PF and Gratuity only if they are part of your CTC breakup.

About the Take Home Salary Calculator

Your CTC (Cost to Company) is what your employer pays, but your take-home salary is significantly lower after provident fund (PF) deductions, income tax, and professional tax. A typical ₹12 LPA package might result in just ₹80,000–₹85,000 per month in hand. This calculator breaks down every component - basic, HRA, allowances, PF, and tax - so you know exactly what to expect.

Take-Home Salary

Take-Home = Gross Salary − Employee PF − Income Tax (TDS) − Professional Tax

Employee PF = 12% of basic salary · Basic salary ≈ 40–50% of CTC · HRA ≈ 40–50% of basic · Income tax computed monthly as TDS

Worked Example

CTC of ₹12 LPA under new tax regime

Annual CTC:₹12,00,000

Basic + DA:₹4,80,000 (40%)

HRA:₹2,40,000 (50% of basic)

Tax Regime:New regime

Annual PF deduction (employee) ≈ ₹57,600 · Income Tax (new regime, 0% up to ₹12L taxable) = ₹0 · Monthly take-home ≈ ₹92,200

Tips & Insights

1
Negotiate a higher basic salary - it increases your PF benefit and gratuity, even if in-hand remains the same.
2
Special Allowance is fully taxable under both regimes - prefer NPS contributions over special allowance.
3
Under the new regime, your employer's NPS contribution (up to 14% of basic) is still exempt for you.
4
Food coupons/meal cards (up to ₹2,200/month) are tax-free under the old regime.
5
Professional Tax is deducted by states - it ranges from ₹0 to ₹2,500/year depending on your state.

Why this matters for you

Many job seekers evaluate offers by CTC without understanding the actual take-home. A ₹15 LPA offer at Company A may yield more take-home than ₹16 LPA at Company B, depending on the salary structure and tax treatment. Always negotiate the salary structure, not just the CTC number.