Take-Home Salary Calculator
Calculate your monthly in-hand salary from your annual CTC.
Frequently Asked Questions
What is CTC?
CTC (Cost to Company) is the total amount a company spends on an employee per year, including salary, PF contribution, and other benefits. It is always higher than your take-home pay.
Why is my in-hand salary much less than CTC?
CTC includes components that don't reach your bank: employer PF contribution (~3.67%), gratuity provision (~4.8%), HRA component (exempt), and income tax (TDS). Your in-hand salary is after all these deductions.
How is PF deducted from salary?
12% of your basic salary is deducted as Employee PF. Many employers cap the PF on ₹15,000 basic (so deduction = ₹1,800/month). Both you and your employer contribute 12% each.
What is professional tax?
Professional tax is a state-level tax deducted from salaries. It varies from ₹0 to ₹208/month depending on the state. Max ₹2,500 per year. Some states (e.g., Delhi) don't levy it.
How can I increase my in-hand salary?
1) Opt for the Old Tax Regime with maximum deductions (80C, 80D, HRA, NPS). 2) Negotiate food allowance, telephone reimbursement, and LTA in salary structure. 3) Opt out of VPF if cash-flow is a priority.
What is gratuity and is it part of CTC?
Gratuity is a retirement benefit payable after 5 years of service. Many companies include a gratuity provision (4.8% of basic) in the CTC, but you receive it only at separation after 5+ years.
What is Form 16?
Form 16 is the TDS certificate issued by your employer, showing total salary, deductions, and tax deducted. It is required for filing your ITR and is issued by June 15th after the financial year ends.