CTC Calculator India: Free Take-Home Salary Calculator
Free CTC to take-home salary calculator. Instantly see your monthly in-hand pay with Basic, HRA, EPF, PT, and income tax deductions for FY 2025-26.
Use this free salary breakdown calculator to instantly convert your CTC into Basic Salary, HRA, EPF, Professional Tax, and in-hand salary — based on the latest Indian tax rules.
What Is CTC and How Does It Differ From Take-Home Salary?
CTC (Cost to Company) is the total annual amount your employer spends on you — including basic salary, House Rent Allowance (HRA), special allowance, employer Provident Fund (PF) contribution, Employee State Insurance (ESI), gratuity, group health insurance, and meal/transport benefits. The figure printed on your offer letter is your CTC.
Your in-hand salary (also called take-home salary or net salary) is the amount that actually reaches your bank account every month. The gap between CTC and in-hand is typically 25–35%, split between employer-side contributions you never see (PF, gratuity, insurance) and statutory deductions from your gross pay (employee PF, professional tax, TDS income tax).
For Hyderabad and Telangana professionals working in HITEC City, Madhapur, Gachibowli, Kondapur, or Banjara Hills, the in-hand salary on a Rs. 10 LPA CTC is approximately Rs. 71,250/month under the new tax regime FY 2026-27 — assuming Telangana professional tax of Rs. 200/month, no 80C investments, and metro HRA rate.
How Is CTC Calculated in India? Full Formula for FY 2026-27
The CTC to in-hand salary calculation follows a 4-step formula compliant with Income Tax Act 1961, EPF Act 1952, and ESI Act 1948:
Gross = CTC − Employer PF (12% of basic) − Employer ESI (3.25% of gross, if applicable) − Gratuity (4.81% of basic)
Step 2 — Taxable Income:
Old regime: Taxable = Gross − Std. deduction (Rs. 50,000) − HRA exemption − 80C (max Rs. 1.5L) − 80D (max Rs. 25K) − PT
New regime: Taxable = Gross − Std. deduction (Rs. 75,000) − PT
Step 3 — Income Tax (TDS):
TDS = (Tax on taxable income per slab) × 1.04 (includes 4% Health & Education Cess)
Apply Section 87A rebate: zero tax if taxable ≤ Rs. 12L (new regime) or ≤ Rs. 5L (old regime)
Step 4 — In-Hand Salary:
In-hand (annual) = Gross − Employee PF (12% of basic) − Professional Tax (state-wise) − TDS
In-hand (monthly) = In-hand (annual) ÷ 12
Worked example for a Hyderabad-based professional with Rs. 10 LPA CTC, new tax regime, metro HRA, no rent declared:
- CTC: Rs. 10,00,000/year
- Basic salary (50% of CTC): Rs. 5,00,000
- HRA (50% of basic, metro rate): Rs. 2,50,000
- Employer PF (12% of basic, capped Rs. 21,600): Rs. 21,600
- Gratuity (4.81% of basic): Rs. 24,050
- Special allowance (balancing figure): Rs. 2,04,350
- Gross salary: Rs. 9,54,350/year
- Standard deduction (new regime): Rs. 75,000
- Telangana PT: Rs. 2,400/year
- Taxable income: Rs. 8,76,950
- Income tax (new regime): Rs. 0 (Section 87A rebate applies up to Rs. 12L taxable income)
- Employee PF: Rs. 21,600/year
- In-hand annual: Rs. 9,30,350 · In-hand monthly: Rs. 77,529
Use the calculator at the top of this page to run the same math for any CTC, state, regime, and deduction profile — results update instantly.
CTC vs Gross Salary vs Net Salary vs In-Hand: Definitions
HR teams and offer letters use these four terms loosely, which causes confusion. Here is the precise meaning of each, in the order from largest to smallest:
- CTC (Cost to Company): Largest figure. Includes everything — gross salary plus employer PF, employer ESI, gratuity, insurance, perks, ESOPs at notional value.
- Gross Salary: What appears on your monthly payslip earnings line. Basic + HRA + special allowance + bonuses paid to you. Excludes employer-side contributions.
- Net Salary: Same as in-hand. Gross minus statutory deductions (employee PF, PT, TDS). Often used in payroll software and salary slips.
- In-Hand Salary: The number you see in your bank statement. Net salary − any voluntary deductions (canteen, transport, loan EMI, NPS).
CTC vs In-Hand Salary: Component-Wise Comparison
This table shows which salary components count toward CTC versus what actually shows up in your bank account each month. Use it to read your offer letter accurately.
| Component | In CTC? | In Take-home? |
|---|---|---|
| Basic salary | Yes | Yes after deductions |
| HRA (House Rent Allowance) | Yes | Yes |
| Special allowance | Yes | Yes |
| Employer PF (12% basic) | Yes | No goes to PF account |
| Employer ESI (3.25% gross) | Yes if applicable | No goes to ESIC |
| Gratuity (4.81% basic) | Yes | No paid after 5 years |
| Employee PF deduction | — | No deducted |
| Professional tax | — | No deducted |
| TDS (income tax) | — | No deducted |
Old vs New Tax Regime FY 2026-27: Which Is Better?
Quick answer: The new regime wins for most salaried Indians earning under Rs.15 LPA who do not claim heavy 80C investments. Old regime wins if your combined deductions (80C + 80D + HRA + home loan) exceed approximately Rs.4 lakh/year.
| Income slab (FY 2026-27) | New regime | Old regime |
|---|---|---|
| Up to Rs. 2,50,000 | 0% | 0% |
| Rs. 2,50,001 – 4,00,000 | 0% | 5% |
| Rs. 4,00,001 – 5,00,000 | 5% | 5% |
| Rs. 5,00,001 – 8,00,000 | 5% | 20% |
| Rs. 8,00,001 – 10,00,000 | 10% | 20% |
| Rs. 10,00,001 – 12,00,000 | 10% | 30% |
| Rs. 12,00,001 – 16,00,000 | 15% | 30% |
| Rs. 16,00,001 – 20,00,000 | 20% | 30% |
| Rs. 20,00,001 – 24,00,000 | 25% | 30% |
| Above Rs. 24,00,000 | 30% | 30% |
| Standard deduction | Rs. 75,000 | Rs. 50,000 |
| Section 87A rebate | Up to Rs. 12 LPA | Up to Rs. 5 LPA |
The Section 87A rebate up to Rs. 12 lakh taxable income is the game-changer for FY 2026-27 — most salaried earners with CTC up to Rs. 14 LPA pay zero income tax under the new tax regime. The new regime is now the default since FY 2023-24, but you can opt for the old regime each financial year while filing returns.
When Should You Choose the Old Tax Regime in 2026-27?
The old regime makes sense only when your combined deductions cross approximately Rs. 4–4.5 lakh per year. Add up these and compare:
- HRA exemption (typical: Rs. 1–2 lakh for Hyderabad rent of Rs. 20K/month)
- Section 80C (max Rs. 1.5 lakh): EPF, PPF, ELSS, life insurance, home loan principal, ULIP, NSC, Sukanya Samriddhi
- Section 80D (max Rs. 25K self + Rs. 50K parents senior citizens): health insurance premium
- Section 24(b) (max Rs. 2 lakh): home loan interest on self-occupied property
- Section 80CCD(1B) (extra Rs. 50K): NPS Tier-1 contribution
- Section 80E: education loan interest (no cap)
If your total deductions are below Rs. 4 lakh, the new regime almost always saves more tax. The default new regime is also simpler — no proof submission, no investment lock-in pressure.
HRA Exemption Calculation: Step-by-Step Example for Hyderabad
House Rent Allowance (HRA) exemption is one of the largest old-regime tax savings for salaried Indians, but only if you live on rent. The exemption is the least of three calculations under Section 10(13A) of the Income Tax Act:
- Actual HRA received from employer
- 50% of basic salary (metro: Mumbai, Delhi, Chennai, Kolkata) or 40% (non-metro — including Hyderabad and Bangalore for HRA purposes)
- Actual rent paid − 10% of basic salary
Worked example: Suppose you work in HITEC City Hyderabad with Rs. 12 LPA CTC, basic salary Rs. 6,00,000/year, HRA Rs. 3,00,000/year, paying Rs. 25,000/month rent in Madhapur.
- Annual rent paid: Rs. 25,000 × 12 = Rs. 3,00,000
- Calc 1 — Actual HRA: Rs. 3,00,000
- Calc 2 — 40% of basic (Hyderabad is non-metro for HRA): Rs. 2,40,000
- Calc 3 — Rent minus 10% of basic: Rs. 3,00,000 − Rs. 60,000 = Rs. 2,40,000
- HRA exemption = lowest = Rs. 2,40,000/year (Rs. 20,000/month)
That Rs. 2.4 lakh exemption alone reduces your taxable income by Rs. 2.4 lakh. Note: Hyderabad is treated as non-metro for HRA exemption purposes — only the four classical metros qualify for 50%. The HRA exemption applies only under the old tax regime; the new regime taxes full HRA.
EPF, ESI, and Gratuity: How Statutory Deductions Reduce Take-Home
Three statutory contributions reduce the gap between CTC and in-hand for every salaried Indian:
1. Employee Provident Fund (EPF) — The Employees Provident Fund Organisation (EPFO) mandates 12% of basic salary as employer contribution and matching 12% from the employee. Both are capped at the statutory wage ceiling of Rs. 15,000/month, so the maximum monthly PF contribution from each side is Rs. 1,800 (Rs. 21,600 annually). Companies may offer voluntary higher PF (uncapped basic). Your 12% is deducted from gross before in-hand; the employer's 12% sits inside CTC but goes directly to your EPFO account — you only access it on retirement, resignation (after 2 months), or specific medical/housing needs.
2. Employee State Insurance (ESI) — Applies only if your gross monthly salary is Rs. 21,000 or less. Employee contributes 0.75% of gross; employer pays 3.25%. For most professional roles in Hyderabad earning above Rs. 21,000/month, ESI is zero. Junior support staff and entry-level roles often see ESI deductions.
3. Gratuity — The Payment of Gratuity Act 1972 mandates gratuity for employees completing 5 continuous years with one employer. The formula is (Last drawn basic + DA) × 15/26 × years of service. Most companies provision 4.81% of basic salary annually inside CTC, so it shows on your offer letter but never reaches your bank until you complete 5 years and exit. If you leave before 5 years, you forfeit gratuity entirely.
Calculating salaries for your team?
HRSoftwareHyderabad runs payroll for 50 employees in 15 minutes — auto Telangana PT, Form 16, WhatsApp payslips. Flat Rs.99/emp.
In-Hand Salary by CTC Bracket (FY 2026-27, Hyderabad/Telangana)
The most-searched salary queries on Google in India are exact CTC figures — "10 LPA in hand salary", "12 LPA in hand", "15 LPA take home". Below are approximate monthly in-hand figures for the most common CTC brackets, calculated using the formula above. Assumes Telangana professional tax (Rs. 200/month), metro HRA (50% of basic), no 80C/80D investments declared, and standard 50/40/10 salary structure (50% basic, 40% allowances, 10% benefits). Use the live calculator above for your exact number with your own deductions.
| New regime in-hand | Rs. 35,417/mo |
| Old regime in-hand | Rs. 39,167/mo |
| New regime in-hand | Rs. 56,000/mo |
| Old regime in-hand | Rs. 62,000/mo |
| New regime in-hand | Rs. 70,000/mo |
| Old regime in-hand | Rs. 76,250/mo |
| New regime in-hand | Rs. 83,333/mo |
| Old regime in-hand | Rs. 91,250/mo |
| New regime in-hand | Rs. 100,833/mo |
| Old regime in-hand | Rs. 109,583/mo |
| New regime in-hand | Rs. 130,833/mo |
| Old regime in-hand | Rs. 140,000/mo |
| New regime in-hand | Rs. 156,250/mo |
| Old regime in-hand | Rs. 168,333/mo |
| New regime in-hand | Rs. 181,667/mo |
| Old regime in-hand | Rs. 195,000/mo |
State-Wise Professional Tax Slabs (April 2026)
Professional tax is deducted monthly by your employer based on your state of employment, not state of residence. Delhi has no PT.
| State | Salary slab (monthly) | PT per month | Annual max |
|---|---|---|---|
| Telangana | Rs. 15,001 – 20,000 Above Rs. 20,000 | Rs. 150 Rs. 200 | Rs. 2,400 |
| Karnataka | Above Rs. 15,000 | Rs. 200 | Rs. 2,400 |
| Maharashtra | Rs. 7,501 – 10,000 Above Rs. 10,000 | Rs. 175 Rs. 200 | Rs. 2,500 |
| Tamil Nadu | Slab-wise (top slab) | Rs. 1,250 | Rs. 2,500 |
| West Bengal | Slab-wise (top slab) | Rs. 200 | Rs. 2,400 |
| Gujarat | Above Rs. 12,000 | Rs. 200 | Rs. 2,400 |
| Andhra Pradesh | Slab-wise (top slab) | Rs. 200 | Rs. 2,400 |
| Delhi | No professional tax | — | Rs. 0 |
Detailed Telangana PT breakdown: /professional-tax-telangana/
7 Most Common CTC Calculation Mistakes (And How to Avoid Them)
- Counting gratuity as monthly take-home. Gratuity (4.81% of basic salary) sits inside CTC but is only paid out after completing 5 continuous years of service with the same employer. If you leave before 5 years, you forfeit gratuity entirely. Always subtract gratuity when estimating real monthly in-hand.
- Forgetting employer PF. The 12% employer PF contribution is in your CTC but routes directly to your EPFO Universal Account Number (UAN). It is not paid to you in cash. Many candidates negotiate CTC without realising 24% (employer + employee PF) is locked away.
- Assuming HRA exemption applies in the new regime. The new tax regime does not allow HRA exemption, Section 80C, 80D, or home loan interest deduction. If you live on rent in Hyderabad paying Rs. 25K/month and switched to the new regime, you may be losing Rs. 50,000+/year in tax savings. Always compare both regimes annually.
- Ignoring variable pay timing. If your offer letter shows Rs. 12 LPA with Rs. 2L variable performance bonus, your monthly fixed pay is calculated on Rs. 10L only. Variable is paid quarterly, half-yearly, or annually based on KRA achievement — not monthly. Check the variable payout schedule in your offer letter.
- Mixing up gross and CTC. Gross salary is what shows on your monthly payslip earnings line. CTC includes employer-side contributions on top. The gap between gross and CTC is roughly 12–17% (employer PF + gratuity + insurance).
- Forgetting professional tax differs by state. Professional tax is deducted based on your state of employment, not state of residence. A Hyderabad-based employee working remotely for a Bangalore office pays Karnataka PT, not Telangana PT. Delhi has no professional tax at all.
- Assuming ESI applies to all salaries. Employees State Insurance covers only those with gross monthly salary up to Rs. 21,000. If your gross is Rs. 25,000+, ESI is zero. Many calculators wrongly auto-deduct ESI for senior roles.
Salary Calculator for Hyderabad & Telangana: Local Tax Compliance Notes
If you work in HITEC City, Madhapur, Gachibowli, Kondapur, Banjara Hills, Jubilee Hills, Genome Valley, or anywhere in Telangana, your monthly salary deductions follow specific Telangana state rules that differ from Karnataka, Maharashtra, or Tamil Nadu.
Telangana Professional Tax (PT): Levied under the Telangana Tax on Professions, Trades, Callings & Employments Act 1987. The slabs are Rs. 150/month for monthly salary Rs. 15,001–20,000 and Rs. 200/month above Rs. 20,000. Total annual PT for most Hyderabad IT/ITES professionals is Rs. 2,400. Your employer deducts and remits this via the Telangana Commercial Taxes Department by the 10th of the following month. PT receipts must accompany Form 16.
Telangana Shops & Establishments Act: Hyderabad IT, ITES, BPO, and KPO companies registered under this act may apply for night-shift work permission for women employees with safety arrangements (transport, security, group transport). This affects shift allowances and night-shift CTC components.
Telangana Labour Welfare Fund: Most Telangana establishments contribute Rs. 2/employee/month (employee) and Rs. 5/employee/month (employer) to the Welfare Fund. This typically does not appear separately on payslips but is part of CTC.
HITEC City and IT Corridor Compensation: Hyderabad SaaS, product, and IT services roles often include USD-denominated retention bonuses, RSU/ESOP grants vesting over 4 years, joining bonuses (claw-back if exit within 12 months), and night-shift differential pay. None of these are reflected in standard CTC calculators — ask your HR for a detailed CTC breakup spreadsheet before signing.
Cost-of-living context: A Rs. 12 LPA CTC in Hyderabad delivers materially better lifestyle than the same CTC in Mumbai or Bangalore due to lower rents (typical 2BHK in Madhapur Rs. 25–35K vs Rs. 50K+ in Mumbai/Bangalore), lower commute costs, and Hyderabad's growing food/F&B affordability. Use this calculator alongside the Telangana PT guide, Telangana minimum wages, and complete Telangana payroll compliance guide for accurate offer evaluation.
Frequently Asked Questions About CTC and Salary Calculation
What is CTC and what does it include?
CTC (Cost to Company) is the total annual amount your employer spends on you, including basic salary, House Rent Allowance (HRA), special allowance, conveyance, medical reimbursement, employer Provident Fund contribution (12% of basic), employer Employee State Insurance contribution (3.25% of gross, if applicable), gratuity provision (4.81% of basic), group health insurance premium, meal coupons, transport, and ESOP grants at notional value. CTC is the figure printed on your offer letter and is always larger than your monthly take-home salary.
How is in-hand salary calculated from CTC in India?
The formula is: In-hand = CTC − Employer PF − Employer ESI (if applicable) − Gratuity − Employee PF − Professional Tax − TDS. For a Rs. 10 LPA CTC under the new tax regime (FY 2026-27) in Telangana, in-hand is approximately Rs. 71,250–Rs. 77,500/month depending on declared investments. Use the live calculator at the top of this page for your exact figure.
What is the in-hand salary for 10 LPA CTC in Hyderabad?
For a Rs. 10 LPA CTC in Hyderabad under the new tax regime FY 2026-27 (Telangana PT, no 80C/80D, metro HRA), the in-hand salary is approximately Rs. 76,250/month (annual take-home Rs. 9,15,000). Under the old regime with Rs. 1.5L 80C plus HRA exemption (Rs. 25K/month rent), in-hand can rise to Rs. 78,500/month. Income tax is zero in both regimes thanks to Section 87A rebate.
What is the in-hand salary for 12 LPA CTC?
For Rs. 12 LPA CTC under the new tax regime FY 2026-27 in Telangana, in-hand is approximately Rs. 91,250/month (Rs. 10.95 lakh annual take-home). Income tax is zero under the new regime up to Rs. 12 LPA taxable income (Section 87A). Under the old regime with full deductions, in-hand may be Rs. 90,000–92,000/month depending on claimed exemptions.
What is the in-hand salary for 15 LPA CTC?
For Rs. 15 LPA CTC in Hyderabad under the new tax regime FY 2026-27, in-hand is approximately Rs. 1,09,500/month (Rs. 13.14 lakh annual). At this CTC, the taxable income exceeds the Rs. 12 LPA Section 87A rebate threshold, so income tax of Rs. 30,000–45,000/year applies. The old regime can match or beat the new regime if you have Rs. 4 lakh+ in combined deductions.
Is gratuity part of CTC and when is it paid?
Yes, most Indian employers include gratuity (4.81% of basic salary) inside CTC. However, gratuity under the Payment of Gratuity Act 1972 is only paid after 5 continuous years of service with the same employer. The formula is (last drawn basic + DA) × 15/26 × years of service, capped at Rs. 20 lakh. If you leave before 5 years, you forfeit accrued gratuity. Always subtract gratuity from CTC when estimating real monthly take-home.
What is the difference between CTC and gross salary?
CTC includes employer-side contributions (PF, gratuity, insurance, ESI) on top of your gross salary. Gross salary is the sum of basic + HRA + special allowance + variable bonus paid to you. Gross is always less than CTC by roughly 12–17%. Net or in-hand salary is gross minus statutory deductions (employee PF, professional tax, TDS).
What is the difference between gross salary and net salary?
Gross salary is your total earnings before deductions, shown on the earnings line of your payslip. Net salary (also called in-hand or take-home) is gross minus employee PF, professional tax, and TDS income tax. Net salary is what gets credited to your bank account each month.
Can I switch between old and new tax regime?
Yes. The new tax regime is the default for salaried individuals from FY 2023-24. You can switch back to the old regime each financial year while filing your Income Tax Return. Once chosen for a year, the regime cannot be changed mid-year. Self-employed taxpayers can switch only once in their lifetime back to the old regime once they opt for the new regime.
Which tax regime is better for FY 2026-27?
The new regime wins for most salaried Indians earning under Rs. 15 LPA who do not claim heavy deductions, thanks to the Section 87A rebate up to Rs. 12 LPA taxable income. The old regime wins only if your combined deductions (HRA exemption + 80C + 80D + home loan interest + NPS + education loan) exceed approximately Rs. 4–4.5 lakh/year. Use the calculator above to compare both regimes side by side for your CTC.
What is Telangana Professional Tax?
Telangana levies Professional Tax of Rs. 150/month for monthly salary Rs. 15,001–20,000 and Rs. 200/month above Rs. 20,000. Annual PT for most Hyderabad IT/ITES employees is Rs. 2,400 (Rs. 200 × 12). PT is deducted monthly by your employer and remitted to the Telangana Commercial Taxes Department by the 10th of the following month. Read our full Telangana PT 2026 guide for slab-wise details.
Is Hyderabad a metro city for HRA exemption?
No. For Income Tax Act Section 10(13A) HRA exemption purposes, only Mumbai, Delhi, Chennai, and Kolkata are classified as metros (50% of basic). Hyderabad, Bangalore, Pune, Ahmedabad, and all other cities are non-metro (40% of basic). This is a separate classification from "metro/non-metro" used for HRA component calculation in salary structure.
How does HRA exemption work in the old tax regime?
HRA exemption under Section 10(13A) equals the lowest of three figures: (1) actual HRA received, (2) 50% of basic salary if you live in Mumbai/Delhi/Chennai/Kolkata or 40% for all other cities including Hyderabad/Bangalore, or (3) actual rent paid minus 10% of basic salary. HRA exemption applies only under the old tax regime. The new regime taxes full HRA.
What is the EPF contribution rate and ceiling?
The Employees Provident Fund Organisation (EPFO) mandates 12% of basic salary as employer contribution and a matching 12% from the employee. Both contributions are statutorily capped at the Rs. 15,000/month wage ceiling, so the maximum monthly PF contribution from each side is Rs. 1,800 (Rs. 21,600 annually). Companies can offer voluntary higher PF on uncapped basic if both parties agree.
What is the ESI deduction threshold in 2026?
Employees with gross monthly salary up to Rs. 21,000 are covered under Employee State Insurance. Employee contributes 0.75% of gross; employer pays 3.25%. For salaries above Rs. 21,000, ESI is not deducted. Most professional and managerial roles in Hyderabad earning above Rs. 21,000/month show ESI = 0 in their salary slip.
How do I calculate basic salary from CTC?
Most Indian employers structure basic salary as 40–50% of CTC. Our calculator uses 50% as the standard. Higher basic means higher PF contribution and gratuity (better long-term savings) but also higher tax. Some companies cap basic at Rs. 15,000/month to minimise PF; this is legal but unhelpful for employee retirement savings. Always check the basic-to-CTC ratio in your offer letter.
How accurate is this online CTC calculator?
This calculator follows FY 2026-27 income-tax slabs (Budget 2025-26 changes), state-wise professional tax slabs for 8 Indian states (Telangana, Karnataka, Maharashtra, Tamil Nadu, West Bengal, Gujarat, Andhra Pradesh, Delhi), EPFO contribution rules, ESIC thresholds, and Section 10(13A) HRA exemption logic. Results are a close estimate — actual TDS may vary slightly based on declared investments, perquisites, joining bonuses, and rebate claims under Sections 87A, 80C, 80D, 80E, 24(b).
Why is my actual in-hand salary less than the calculator shows?
Common reasons: (1) gratuity and employer PF sit inside CTC but never reach your bank, (2) variable pay is performance-based and paid quarterly/annually not monthly, (3) advance tax/TDS is deducted upfront on annualised income projection, (4) voluntary deductions like canteen, transport, professional indemnity, NPS contributions, or loan EMI further reduce take-home, (5) joining bonus claw-back clauses may withhold parts of your first months. Always ask HR for a detailed CTC breakup with monthly cash component before signing your offer letter.
Run Real Payroll for Your Team — Not Just a Calculator
Calculator says one thing. Reality is messier.
HRSoftwareHyderabad automates real payroll — Telangana PT, Form 16, WhatsApp payslips, PF/ESI filings — for Hyderabad SMBs. Flat Rs.99/emp/month.
