Worked example
On a CTC of ₹12,00,000 a year, about ₹91,396 reaches your account in a normal month. Over the year, ₹0 goes as income tax for 2026-27.
- CTC for the year
- ₹12,00,000
- Your PF for the year
- ₹36,000
- Professional tax
- ₹2,400
- Income tax for the year
- ₹0
- In-hand for the year
- ₹10,96,754
- In-hand in a normal month
- ₹91,396
| Part | Per year | Per month |
|---|---|---|
| Basic + DA | ₹6,00,000 | ₹50,000 |
| HRA | ₹2,40,000 | ₹20,000 |
| Special allowance | ₹2,95,154 | ₹24,596 |
| Bonus / variable pay | ₹0 | ₹0 |
| Gross salary | ₹11,35,154 | ₹94,596 |
| Employer PF | ₹36,000 | ₹3,000 |
| Gratuity | ₹28,846 | ₹2,404 |
| Employer NPS | ₹0 | ₹0 |
| Your PF | -₹36,000 | -₹3,000 |
| Professional tax | -₹2,400 | -₹200 |
| Income tax | ₹0 | ₹0 |
| Take-home | ₹10,96,754 | ₹91,396 |
How to use this calculator
- Enter your yearly CTC and the basic and HRA share from your offer letter.
- Choose how PF is cut and whether gratuity is part of CTC.
- Pick your tax regime; for the old regime, add rent and savings.
Income tax is worked out with the same rules as our Income Tax Calculator (2026-27).
Frequently asked questions
What is the in-hand salary for ₹12 lakh CTC?
About ₹91,396 a month in the new regime, with basic at 50% of CTC, PF on wages up to ₹25,000 and gratuity counted in CTC. Income tax for 2026-27 comes to ₹0.
Why is my in-hand so much lower than CTC ÷ 12?
CTC includes money you do not get every month: the employer’s PF, gratuity, and any bonus or variable pay. Your own PF, professional tax and income tax are then cut from the salary.
Does PF on full basic reduce take-home?
Yes, in cash today. If PF is cut on full basic instead of the ₹25,000 limit, the example in-hand falls to ₹85,396 a month — but more goes into your PF savings, which earn interest.
Which tax regime gives more in-hand?
It depends on your rent and savings. At ₹25 lakh CTC with no rent or extra savings, the new regime gives ₹1,72,666 a month and the old regime ₹1,53,172. Switch to the old regime above and enter your rent and savings to compare.
What is gratuity in CTC?
Many companies show gratuity (15 days’ basic for each year) as part of CTC. You get it only when you leave after the qualifying service, so it is not part of your monthly pay.