Salary calculator · CTC to in-hand · new regime, tax year 2026-27
In-hand salary calculator, from CTC to take-home.
Enter the CTC from your offer and where you work. The calculator builds the salary structure, works out Code wages, takes out PF, ESI, gratuity, professional tax and an income-tax estimate, and shows each line with its reason.
because CTC ÷ 12 is not what reaches the bank, and every rupee of the gap has a rule behind it.
The short answer
Take the CTC, remove what the employer pays that never reaches your salary (its PF, the gratuity provision and, on low pay, its ESI), and you have gross salary. Then take off your own PF, ESI if Code wages are ₹21,000 or less, professional tax and income-tax. On Paiteq's structure in Bengaluru, a 12 lakh CTC gives ₹90,341 a month in hand in October 2026: ₹9,659 less than CTC ÷ 12, and no income-tax under the new regime.
Your offer, one month and one year
In-hand, October 2026
₹90,341
a year ₹10,83,995 · an average month ₹90,333
- 01CTC
- ₹1,00,000
a year ₹12,00,000
because CTC is the employer's yearly cost for the role; a month is one-twelfth
- 02Employer PF
- ₹3,000
a year ₹36,000
because 12% of the ₹25,000 ceiling: Code wages of ₹71,941 are above it; it goes to the PF account, not to the salary
- 03Gratuity provision
- ₹3,459
a year ₹41,505
because 15 days' Code wages a year (₹71,941 × 15 ÷ 26 ÷ 12 a month) are set aside; gratuity is paid at exit, after 5 years of service
- 04Gross salary
- ₹93,541
a year ₹11,22,495
because Basic ₹50,000, HRA ₹20,000, fixed allowances ₹1,600 and special allowance ₹21,941, the balance of CTC
- 05Employee PF, 12%
- ₹3,000
a year ₹36,000
because 12% of the ₹25,000 ceiling: Code wages of ₹71,941 are above it; it is the employee's own savings in the PF account
- 06Employee ESI, 0.75%
- ₹0
a year ₹0
because Code wages of ₹71,941 are above the ₹21,000 ceiling, so ESI does not apply
- 07Professional tax, Karnataka
- ₹200
a year ₹2,500
because ₹200 a month, ₹300 in February
- 08Income-tax (TDS), estimate
- ₹0
a year ₹0
because taxable salary of ₹10,47,495 gets the full rebate under the new regime
- 09In-hand
- ₹90,341
a year ₹10,83,995
because gross salary less PF, ESI, PT and TDS: what reaches the bank account; the year counts February's PT
Salary structure, a month
- Basic
- ₹50,000
because 50% of CTC, a month
- HRA
- ₹20,000
because 40% of Basic
- Fixed allowances
- ₹1,600
because entered, a month; conveyance and the like are excluded items under the Code
- Special allowance
- ₹21,941
because the balance: CTC less every other line
Code wages check, the 50% rule
Excluded items are 25.48% of total remuneration, within half, so nothing is added back.
- Wages: Basic + special allowance
- ₹71,941
because Basic and any allowance not on the excluded list count as wages
- Excluded items
- ₹24,600
because HRA ₹20,000, fixed allowances ₹1,600 and employer PF ₹3,000
- Total remuneration
- ₹96,541
because wages plus excluded items, the employer's PF included
- Half of it
- ₹48,271
because excluded items may not pass half of total remuneration
- Added back
- ₹0
because excluded items stay within half
- Code wages
- ₹71,941
because wages plus anything added back: PF, ESI and gratuity are worked on this
How the TDS estimate is worked out
- Gross salary for the year
- ₹11,22,495
because 12 months of this structure; HRA is taxable in full under the new regime
- Standard deduction
- ₹75,000
because the new regime allows it on salary, and PF and PT do not reduce taxable income
- Taxable salary
- ₹10,47,495
because no other income, deduction or previous employer is entered
- Tax on the slabs
- ₹44,750
because 5% on ₹4,00,000, 10% on ₹2,47,495
- Rebate
- − ₹44,750
because taxable income is within the rebate limit, so the tax goes
- Cess, 4%
- ₹0
because on tax plus surcharge
- Tax for the year
- ₹0
because rounded to the rupee; ₹0 a month if spread evenly
An estimate before investments and other income: it assumes this is your only income, a full year with this employer and no employer NPS. Your employer's TDS follows your declarations and can differ month to month.
Got a raise? Use the salary hike calculator to compare your in-hand before and after.
Not tax or legal advice. The TDS line is an estimate before investments and other income, for a resident employee with a full year at this employer. The worked examples use Paiteq's offer structure, which is sample data. The Form 130 guide explains the annual salary TDS certificate issued after filing, rather than an offer estimate.
Key facts
- In-hand = CTC less employer PF, gratuity provision and employer ESI (when inside CTC), then less employee PF, ESI, professional tax and TDS.
- New regime, tax year 2026-27: a resident with no other income pays no income-tax on salary up to ₹12,75,000 a year (₹75,000 standard deduction, then the rebate on taxable income up to ₹12,00,000).
- PF is 12% of PF wages from each side, on Code wages up to ₹25,000 from 17 Sep 2026: ₹3,000 a month from the employee at the ceiling, more only if employer and employee opt to contribute on full wages.
- Professional tax is set by the state, never above ₹2,500 a year. Fifteen states and union territories levy no professional tax on salaries, among them Delhi, Haryana, Uttar Pradesh and Rajasthan, and Odisha from 1 Apr 2026.
What each input means
- Annual CTC
- The yearly cost to company in the offer letter. Type it with commas, or as 12 lakh, 12L or 1.2 cr. Or switch to in-hand and type the take-home you want a month: the calculator works back to the CTC that gives it. Leave out one-time joining bonuses.
- Basic and HRA
- Basic as a share of fixed CTC (CTC less variable pay) and HRA as a share of Basic. Paiteq uses 50% and 40%; set yours from the offer. Special allowance takes whatever CTC leaves.
- Fixed allowances
- Conveyance and other fixed allowances on the Code's excluded list, a month. They count in Code wages only through the 50% add-back.
- PF
- Wages up to the ceiling is the usual offer: 12% of Code wages, capped at ₹25,000. All Code wages is a higher PF by joint option. No PF fits an employer below 20 employees that has not joined EPF.
- Inside CTC
- Whether the employer's PF and the gratuity provision are counted in the CTC figure. When they are, they come out before gross salary; when PF is paid on top, gross salary is higher. EDLI insurance (0.5%) and EPF admin charges (0.5%) are left out: up to ₹250 a month at the ceiling. If your offer counts them in CTC, gross salary is that much lower. Turn gratuity off if the employer has fewer than 10 employees or the offer letter does not list it; many small employers keep it outside CTC.
- Variable pay
- Performance bonus or variable pay counted in CTC, for the year. It is left out of the month, added to the year if paid in full, and taxed with salary; PF and ESI are not worked on it here.
- Work state and month
- Professional tax follows the state where you work. February carries ₹300 in Karnataka and Maharashtra. Months run October 2026 to March 2027, under the ₹25,000 PF ceiling.
Official sources
- Income-tax Act, 2025 as amended by the Finance Act, 2026: slabs, standard deduction, rebate, surcharge, cessofficial
- Form 130 (earlier Form 16): the salary TDS certificateofficial
- Notification S.O. 5109(E): EPF wage ceiling of ₹25,000 from 17 Sep 2026official
- Additional FAQs on Labour Codes (16.03.2026): PF wages are Code wagesofficial
- ESIC coverage: Code wages up to ₹21,000official
- ESIC contribution ratesofficial
- Code on Social Security, 2020: gratuityofficial
- Karnataka professional taxsecondary
- Maharashtra profession tax rate schedulesecondary
- Telangana profession tax scheduleofficial
- Gujarat rate of profession taxofficial
- Greater Chennai Corporation profession taxofficial
- West Bengal professional tax from 1 Oct 2026secondary
Each link opens the Income Tax Department, Ministry of Labour, EPFO, ESIC, state tax department or Greater Chennai Corporation document · checked by the LekhaHR team, reviewed 6 Oct 2026
No. 01
How in-hand is calculated
How is in-hand salary calculated from CTC?
In two subtractions. First the employer's own costs come out of CTC: its PF, the gratuity provision and, where ESI applies, its ESI. That leaves gross salary. Then your deductions come off gross: PF, ESI, professional tax and TDS. What remains is in-hand.
Worked example: Paiteq's Product Designer offer, ₹12,00,000 CTC, Bengaluru, October 2026
- Split CTC into a month. ₹12,00,000 ÷ 12 is ₹1,00,000 a month. Paiteq's structure sets Basic at 50% of CTC (₹50,000), HRA at 40% of Basic (₹20,000) and conveyance at ₹1,600.
- Take out the employer's costs. Employer PF of ₹3,000 (12% of the ₹25,000 ceiling) and a gratuity provision of ₹3,459 (15/26 of Code wages, a twelfth a month) are inside CTC but never reach the salary.
- What is left is gross salary. Special allowance takes the balance, ₹21,941, so gross salary is ₹93,541 a month.
- Check Code wages. Basic and special allowance are wages: ₹71,941. HRA, conveyance and employer PF are ₹24,600, under half of ₹96,541, so nothing is added back. Code wages are ₹71,941, above the ₹21,000 ESI ceiling, so no ESI.
- Take off the employee's deductions. Employee PF ₹3,000, Karnataka PT ₹200 and TDS ₹0: taxable salary of ₹10,47,495 after the ₹75,000 standard deduction is within the ₹12,00,000 rebate limit.
- In-hand. ₹90,341 in October 2026, ₹90,241 in February 2027 when PT is ₹300, and ₹10,83,995 for a year.
Design preview · sample data · Paiteq Technologies
The same lines appear on a payslip. See the salary slip format with every statutory line explained, and how LekhaHR payroll works out PF, ESI, PT and TDS for each person each month.
No. 02
In-hand by CTC
What is the in-hand salary for 6 LPA, 10 LPA and 12 LPA?
On Paiteq's structure in Karnataka, October 2026: ₹42,176 a month for 6 LPA, ₹74,286 for 10 LPA and ₹90,341 for 12 LPA. Every row below is worked by the calculator above; change the structure there to see yours.
| CTC | In-hand a month | In-hand a year | Income-tax a year |
|---|---|---|---|
| 3 LPA ₹3,00,000 · ESI | ₹19,971 | ₹2,39,655 | ₹0 |
| 4 LPA ₹4,00,000 | ₹26,952 | ₹3,23,319 | ₹0 |
| 5 LPA ₹5,00,000 | ₹34,149 | ₹4,09,683 | ₹0 |
| 6 LPA ₹6,00,000 | ₹42,176 | ₹5,06,014 | ₹0 |
| 7 LPA ₹7,00,000 | ₹50,204 | ₹6,02,344 | ₹0 |
| 8 LPA ₹8,00,000 | ₹58,231 | ₹6,98,674 | ₹0 |
| 10 LPA ₹10,00,000 | ₹74,286 | ₹8,91,335 | ₹0 |
| 12 LPA ₹12,00,000 | ₹90,341 | ₹10,83,995 | ₹0 |
| 15 LPA ₹15,00,000 | ₹1,07,450 | ₹12,89,294 | ₹83,692 |
| 18 LPA ₹18,00,000 | ₹1,27,664 | ₹15,31,878 | ₹1,30,099 |
| 20 LPA ₹20,00,000 | ₹1,40,380 | ₹16,84,465 | ₹1,70,172 |
| 25 LPA ₹25,00,000 | ₹1,70,870 | ₹20,50,344 | ₹2,85,945 |
| 30 LPA ₹30,00,000 | ₹1,98,920 | ₹23,86,931 | ₹4,31,009 |
Rows marked ESI have Code wages within ₹21,000, so the employer's 3.25% comes out of CTC and 0.75% comes off pay. ESI is tested on Code wages, not gross pay, since 21 Nov 2025. On the 3 lakh offer, gross is ₹21,925 but Code wages are ₹15,325, so ESI applies. A payroll still testing gross would show no ESI; ask HR which base it uses. Rows at the lowest CTCs may also carry statutory bonus, which some employers count inside CTC; it is not modelled here. Income-tax starts above a gross salary of ₹12,75,000 a year; just past it, marginal relief keeps the tax small. PT differs by state: professional tax slabs for each state, or work one person out with the professional tax calculator.
In-hand by monthly CTC, ₹20,000 to ₹60,000 a month
| CTC a month | In-hand a month | ESI from pay | PT |
|---|---|---|---|
| ₹20,000 ₹2,40,000 a year | ₹16,065 | ₹90 | none |
| ₹25,000 ₹3,00,000 a year | ₹19,971 | ₹115 | none |
| ₹30,000 ₹3,60,000 a year | ₹23,678 | ₹140 | ₹200 |
| ₹35,000 ₹4,20,000 a year | ₹28,289 | no ESI | ₹200 |
| ₹40,000 ₹4,80,000 a year | ₹32,543 | no ESI | ₹200 |
| ₹50,000 ₹6,00,000 a year | ₹42,176 | no ESI | ₹200 |
| ₹60,000 ₹7,20,000 a year | ₹51,809 | no ESI | ₹200 |
Working the other way: to take home ₹35,000 a month on this structure, the CTC needs to be about ₹5,11,000 a year. Switch the calculator to in-hand to work back from any figure.
No. 03
PF and CTC
Is PF part of CTC?
Usually, yes: most offers count the employer's 12% PF inside CTC, so it comes out before gross salary. Some employers pay it on top. Your own 12% is always deducted from gross salary. On Paiteq's 12 lakh offer:
| PF in the offer | Gross a month | Your PF | In-hand a month |
|---|---|---|---|
| Employer PF inside CTC, to the ceiling | ₹93,541 | ₹3,000 | ₹90,341 |
| Employer PF on top of CTC | ₹96,404 | ₹3,000 | ₹93,204 |
| PF on all Code wages, inside CTC | ₹88,719 | ₹8,054 | ₹80,465 |
PF on all Code wages lowers in-hand by ₹9,876 a month here, and all of it goes to your PF account, with the employer's matching share. Contributing above the ceiling is optional and needs both sides to agree. Work out PF line by line in the EPF calculator A September 2026 salary is split at 17 Sep: see the September 2026 PF split.
No. 04
The gap
Why is my in-hand less than CTC ÷ 12?
Because CTC counts money that never reaches your account in that month. On ₹12,00,000, CTC ÷ 12 is ₹1,00,000 and in-hand is ₹90,341: a gap of ₹9,659. At ₹18,00,000 the gap is ₹22,336, and most of the extra is income-tax.
| Employer PF | ₹3,000 |
|---|---|
| Gratuity provision | ₹3,459 |
| Employee PF | ₹3,000 |
| Professional tax | ₹200 |
| Gap, a month | ₹9,659 |
| Employer PF | ₹3,000 |
|---|---|
| Gratuity provision | ₹5,294 |
| Employee PF | ₹3,000 |
| Professional tax | ₹200 |
| Income-tax (TDS) | ₹10,842 |
| Gap, a month | ₹22,336 |
Your PF and the employer's PF build your PF balance, except up to ₹2,083 a month of the employer's share, which goes to the pension scheme (EPS). The gratuity provision is paid only if you leave after 5 years (1 year on a fixed-term contract); leave earlier and it is not paid. TDS is credited to your PAN and shows in Form 130 (earlier Form 16). Professional tax is capped at ₹2,500 a year.
No. 05
CTC, gross, net
What is CTC vs gross vs net salary?
CTC is the employer's total yearly cost. Gross salary is what the payslip earns before deductions. Net salary, or in-hand, is what is paid into your account. For Paiteq's 12 lakh offer, a month:
- 01CTC
- ₹1,00,000
because ₹12,00,000 ÷ 12: salary plus employer PF ₹3,000 and gratuity provision ₹3,459.
- 02Gross salary
- ₹93,541
because Basic ₹50,000, HRA ₹20,000, conveyance ₹1,600 and special allowance ₹21,941: what the payslip shows as earnings.
- 03Net (in-hand)
- ₹90,341
because gross less employee PF ₹3,000, professional tax ₹200 and TDS ₹0.
Code wages are a fourth figure, used for PF, ESI and gratuity: ₹71,941 here, Basic plus special allowance. The calculator's Code wages check shows the 50% test for any structure.
No. 06
The labour codes
Does the new labour code reduce in-hand salary?
For many offers, a little. Since 21 Nov 2025 PF, ESI and gratuity are worked on Code wages, which include special allowance, where many structures used Basic alone. With gratuity inside CTC, a larger provision leaves less for salary. Where Basic is under the PF ceiling, PF rises too. The table compares the same Paiteq offers both ways.
| CTC | Gratuity provision a month | In-hand a year, Code wages | Lower by |
|---|---|---|---|
| ₹3,00,000 | ₹737 was ₹601 | ₹2,39,655 | ₹9,538 |
| ₹6,00,000 | ₹1,624 was ₹1,202 | ₹5,06,014 | ₹5,063 |
| ₹12,00,000 | ₹3,459 was ₹2,404 | ₹10,83,995 | ₹12,658 |
| ₹18,00,000 | ₹5,294 was ₹3,606 | ₹15,31,878 | ₹16,041 |
At ₹12,00,000 the cost is the gratuity provision alone: ₹12,658 a year, paid back as a larger gratuity only if you stay 5 years. At ₹3,00,000, Basic is under the ceiling, so employee PF also rises, from ₹1,500 to ₹1,839 a month. The excluded-items cap of 50% matters only for structures heavy in HRA and allowances. What the labour codes change for HR, as a checklist
No. 07
The rules behind it
Which rates does the calculator use?
Each rate below carries its source and date. Income-tax figures apply to tax year 2026-27 under the new regime; PF, ESI and gratuity follow the Code on Social Security; professional tax follows the state.
- 01New-regime slabs
- 0% to 30%
because nil up to ₹4,00,000; 5% from ₹4,00,000 to ₹8,00,000; 10% from ₹8,00,000 to ₹12,00,000; 15% from ₹12,00,000 to ₹16,00,000; 20% from ₹16,00,000 to ₹20,00,000; 25% from ₹20,00,000 to ₹24,00,000; 30% above ₹24,00,000.
- 02Standard deduction
- ₹75,000
because the new regime allows it from salary, or the salary itself if lower; PF and professional tax do not reduce taxable income under this regime.
- 03Rebate
- up to ₹60,000
because a resident whose total income is ₹12,00,000 or less pays no tax; just above it, marginal relief keeps the tax at or below the income over ₹12,00,000.
- 04Surcharge
- 10% to 25%
because tax on higher total income carries a surcharge (10% above ₹50,00,000, 15% above ₹1,00,00,000, 25% above ₹2,00,00,000 of total income), with marginal relief at each threshold; the new regime stops at 25%.
- 05Cess
- 4%
because health and education cess is charged on tax plus surcharge.
- 06PF
- 12% each side
because employee and employer each pay 12% of PF wages, the employer's share split between EPS and the PF account.
- 07PF wage ceiling
- ₹25,000
because statutory PF is worked on PF wages up to the ceiling; contributing above it is by joint option.
- 08PF wages
- Code wages
because PF is on all pay except the listed exclusions, so special allowance counts, with excluded items above half of total remuneration added back.
- 09ESI
- up to ₹21,000
because ESI covers employees on Code wages at or below the ceiling: 0.75% from the employee, 3.25% from the employer.
- 10Gratuity
- 15/26 a year
because 15 days' wages are earned for each year, a month being 26 working days; since 21 Nov 2025 on Code wages.
- 11Professional tax, Karnataka
- ₹200 a month
because Karnataka charges it on monthly salary of ₹25,000 or more, ₹300 in February; other states have their own slabs, all within ₹2,500 a year.
Other states covered: Maharashtra (₹200 a month, ₹300 in February), Telangana and Gujarat (flat monthly slabs), Tamil Nadu (Greater Chennai, half-yearly), West Bengal (schedule from 1 Oct 2026). Fifteen states and union territories levy no professional tax on salaries, among them Delhi, Haryana, Uttar Pradesh and Rajasthan, and Odisha from 1 Apr 2026. Anything the fixtures do not hold, such as the old regime, other income or perquisites, is left to your CA. Every state's slab, with its Act and date, is in the professional tax slabs by state; the state pages for professional tax in Karnataka, Maharashtra and West Bengal carry the calculator fixed to the state.
No. 08
What changes in LekhaHR
How does payroll software work out in-hand each month?
In LekhaHR payroll, a salary structure is set once from the CTC, with each component marked as wages or excluded. Each month it works out Code wages, PF, ESI, professional tax for the work state and TDS from the employee's declarations, and the payslip shows the reason for each line. LekhaHR prepares the figures; you or your accountant file and pay.
- 01Salary structure
- from CTC, set once
because the split between Basic, HRA, allowances and employer costs is decided at the offer.
- 02TDS
- from declarations
because Form 124 (earlier Form 12BB) claims and the regime choice decide each month's deduction.
- 03Payslip
- every line explained
because the in-hand figure is the end of a ledger anyone can check.
No. 09
Questions
In-hand salary questions, answered with the numbers.
How much income-tax is due on a ₹12 lakh salary in 2026-27?
None under the new regime. A gross salary of ₹12,00,000 less the ₹75,000 standard deduction leaves ₹11,25,000 of taxable income, inside the ₹12,00,000 rebate limit, so the rebate of up to ₹60,000 clears the tax. Salary up to ₹12,75,000 pays nothing. At a gross salary of ₹15,00,000, tax for the year is ₹97,500 with cess. A 12 lakh CTC is not 12 lakh of salary: on Paiteq's structure, gross salary is ₹11,22,495 once employer PF and gratuity come out.
Is HRA taxable under the new regime?
Yes, in full. The HRA exemption and most deductions claimed through Form 124 (earlier Form 12BB) apply only under the old regime. The new regime is the default from 1 Apr 2026, so this calculator taxes HRA with the rest of gross salary.
Does professional tax reduce income-tax?
Not under the new regime. From salary, the new regime allows the ₹75,000 standard deduction and the employer's NPS contribution; professional tax is not deductible. Professional tax still comes off your pay each month, up to ₹2,500 a year in any state.
Why is my February salary lower?
In Karnataka and Maharashtra, professional tax for February is ₹300 instead of ₹200, so the year adds up to ₹2,500. On Paiteq's 12 lakh offer that makes February's in-hand ₹90,241, ₹100 less than October's.
Can I use this calculator for the old tax regime?
No. The old regime's result turns on rent paid, your city, and the investments and insurance you declare in Form 124 (earlier Form 12BB), so a CTC alone cannot settle it. Use the new-regime figure as the baseline and ask your CA whether the old regime saves more for you.
Is the gratuity in my CTC paid every month?
No. The provision is 15/26 of a month's Code wages for each year of service, set aside by the employer. It is paid when you leave after 5 years of continuous service, or after 1 year on a fixed-term contract, and on death or disablement. Leave before that and the provision counted in your CTC is not paid, so a CTC that includes gratuity overstates what most people who change jobs within 5 years actually receive.
When does ESI come off my salary?
When the employer has 10 or more employees in an area where ESI is implemented and your Code wages are ₹21,000 a month or less. You pay 0.75% and the employer 3.25%. On Paiteq's 3 lakh offer, Code wages of ₹15,325 bring ESI of ₹115 a month from pay.
What is the in-hand for a CTC of ₹35,000 a month?
On Paiteq's structure in Bengaluru, a CTC of ₹35,000 a month (₹4,20,000 a year) gives ₹28,289 in hand in October 2026. Code wages of ₹22,601 are above ₹21,000, so no ESI; professional tax is ₹200. The other way round, taking home ₹35,000 a month needs a CTC of about ₹5,11,000 a year (5.11 lakh) on the same structure.
Is ₹30,000 a month a good salary?
The calculator gives the figures, not a verdict. On Paiteq's structure, a CTC of ₹30,000 a month gives ₹23,678 in hand in Bengaluru in October 2026. Code wages of ₹18,657 are within ₹21,000, so ESI applies: ₹140 a month from pay, with ESI cover. Professional tax is ₹200 a month and income-tax is ₹0. Compare the in-hand with your city's rent and costs.
What does the TDS estimate leave out?
Other income such as interest or rent, salary from an earlier employer this year, perquisites, the employer's NPS contribution, and a part-year if you join mid-year. Your employer works TDS from your declarations and spreads what is left over the remaining months, so the monthly figure can move. Your Form 130 (earlier Form 16) shows the final working for the year.
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