Guide
CTC vs in-hand salary in India (FY 2026–27)
When an offer says 12 LPA CTC, that is not what hits your bank every month. CTC (cost to company) is the employer’s full annual spend. In-hand (take-home) is what remains after employer-side CTC components and your payroll / tax deductions.
What usually sits inside CTC
- Basic salary and allowances (HRA, special allowance, etc.)
- Employer EPF contribution
- Gratuity provision (often ~4.81% of basic)
- Sometimes employer NPS, insurance, meal cards, or other non-cash
- Bonus / variable pay (annual face value, not always monthly cash)
Employer EPF and gratuity are real cost to the company, but they are not monthly cash in your account. That is why CTC and in-hand diverge.
What reduces monthly in-hand
- Employee EPF (often capped at ₹1,800 / month, sometimes full 12%)
- Professional tax (state-dependent; annual cap ₹2,500)
- Income tax + 4% cess under the regime you choose
- Optional: VPF, employee NPS from salary, ESI on lower wages
New vs old tax regime (FY 2026–27)
For a full comparison table and when old regime can win, see new vs old tax regime take-home (FY 2026–27).
The new regime has higher slab thresholds and a ₹75,000 standard deduction for salaried people, with fewer chapter-VIA deductions. Section 87A can wipe tax if taxable income is ₹12 lakh or less — roughly ~₹12.75 lakh of gross salary after typical CTC haircuts.
The old regime still matters if you claim HRA exemption, 80C, 80D, home-loan interest, and similar deductions. Use Advanced mode on the calculator to compare both on the same CTC.
Quick in-hand examples (sample structure)
Same assumptions: 40% basic, EPF capped, Maharashtra professional tax, no HRA / 80C extras:
- New vs old 10 LPA ≈ ₹77,922 / month (new)
- 12 LPA ≈ ₹94,268 / month (new)
- 15 LPA ≈ ₹1,11,318 / month (new)
- 20 LPA ≈ ₹1,44,660 / month (new)
How to use InHand CTC
- Enter annual CTC (or tap an LPA preset).
- Pick basic %, state, EPF cap, and new or old regime.
- Switch to Advanced for HRA, NPS, 80C–80G, home loan, LTA, and more.
- Copy, WhatsApp, or download a PDF of the estimate.
Educational estimate only — not tax, payroll, or legal advice. Full disclaimer.