Question 1

What is in-hand salary?

Accepted Answer

In-hand (or take-home) salary is the amount actually credited to your bank account each month after all deductions — your provident fund contribution, professional tax and income tax (TDS) — are removed from your gross salary. It is always lower than your CTC, because CTC also includes the employer's contributions like employer PF and gratuity, which you never receive as cash.

Question 2

How is take-home salary calculated from CTC?

Accepted Answer

First, gross salary is found by removing the employer's contributions (employer PF and gratuity) from your CTC. Then your own deductions — employee PF (12% of basic), professional tax and income tax — are subtracted from the gross to give your annual take-home, which is divided by 12 for the monthly figure. This calculator lets you set the basic-pay percentage and tax regime so the estimate matches your structure.

Question 3

Why is my in-hand salary lower than my CTC?

Accepted Answer

CTC (Cost to Company) is everything your employer spends on you, including parts you don't receive as cash — employer PF, gratuity provision, and sometimes insurance or variable pay. On top of that, your own PF, professional tax and income tax are deducted. Together these can reduce take-home to roughly 70–90% of CTC depending on your salary structure and tax regime.

Question 4

Does a higher basic salary increase or reduce take-home?

Accepted Answer

A higher basic increases your PF contribution (12% of basic from both you and your employer), which reduces immediate take-home but boosts your retirement savings. It can also affect HRA and gratuity. A lower basic gives more cash now but less forced saving. This calculator lets you adjust the basic percentage to see the effect.

Question 5

Which tax regime gives higher take-home?

Accepted Answer

It depends on your deductions. The new regime usually gives higher take-home if you don't claim many deductions, while the old regime can win if you invest in 80C, pay home-loan interest, claim HRA and so on. Try both using the regime toggle, and use our New vs Old Tax Regime calculator for a detailed comparison.

Component	Annual	Monthly
Cost to company (CTC)	₹12,00,000	₹1,00,000
Basic salary	₹4,80,000	₹40,000
Employer PF (in CTC)	₹57,600	₹4,800
Gratuity (in CTC)	₹23,088	₹1,924
Gross salary	₹11,19,312	₹93,276
Employee PF	− ₹57,600	− ₹4,800
Professional tax	− ₹2,400	− ₹200
Income tax (TDS)	-₹0	-₹0
Take-home salary	₹10,59,312	₹88,276

In-Hand Salary Calculator

Salary breakdown

How the in-hand salary calculator works

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