Use BharatUtility's free In-Hand Salary Calculator to convert annual Cost to Company (CTC) into your net monthly take-home salary in India. Get a complete breakdown of basic pay, allowances, EPF, and tax deductions.
Net In-Hand Monthly Salary = Gross Monthly Salary − (Employee EPF + Professional Tax + Monthly Income Tax TDS)
ext{Net Salary} = ext{Gross Monthly} - ( ext{EPF} + ext{PT} + ext{TDS})Annual CTC: ₹12,00,000 (₹12 Lakhs/year) | New Tax Regime | Standard Deduction ₹75,000
A Salary Calculator (or CTC to In-Hand Salary Calculator) helps salaried employees in India understand the exact difference between their annual Cost to Company (CTC) package and the actual cash credited to their bank account every month. It accounts for statutory components like Employee Provident Fund (EPF), Professional Tax (PT), and Income Tax TDS.
Salary structure in India comprises several core components:
1. Basic Salary: Fixed core component, usually 40% to 50% of total CTC.
2. House Rent Allowance (HRA): Exemption available under Old Tax Regime.
3. Special Allowance: Fully taxable balancing component.
Under the New Tax Regime (FY 2024-25 / FY 2025-26), salaried individuals get a ₹75,000 Standard Deduction. Income up to ₹7,75,000 incurs zero net income tax due to Section 87A rebate.
Dividing annual CTC by 12 gives annual gross monthly pay. Subtracting monthly statutory deductions gives exact monthly net take-home salary.
For an annual CTC of ₹12,00,000 (₹12 Lakhs):
1. Gross Monthly Pay = ₹1,00,000
2. Employee EPF = ₹6,000
3. Professional Tax = ₹200
4. Income Tax TDS = ₹4,500
5. Net In-Hand Salary = ₹89,300 per month
CTC stands for Cost to Company. It is the total annual expenditure an employer incurs on an employee, including salary, allowances, benefits, and EPF contributions.
CTC includes employer benefits and statutory components (like employer EPF and gratuity). Take-Home Salary is the net cash credited to your bank account after all deductions.
Typically, 12% of your basic salary is deducted as your employee EPF contribution, while the employer matches an equal 12% contribution.
Under the New Tax Regime, salaried employees receive a flat ₹75,000 standard deduction from their annual gross salary.
Salaried employees earning up to ₹7,75,000 annual CTC pay zero income tax thanks to the ₹75,000 standard deduction and Section 87A tax rebate.
Professional Tax is a state-level tax on salaried individuals in states like Maharashtra, Karnataka, Tamil Nadu, and West Bengal, capped at ₹2,500 annually.
Yes, BharatUtility’s salary calculator allows you to compare in-hand salary under both the Old and New Tax Regimes.
Yes, BharatUtility’s salary calculator is 100% free with instant salary breakdown results.