About the Salary Calculator
Our CTC to In-Hand Salary Calculator converts your annual CTC (Cost to Company) into approximate monthly take-home salary. Understand the breakdown of basic salary, HRA, employee PF, gratuity, professional tax, income tax and allowances so you can compare job offers and negotiate with confidence.
How the Calculation Works
The mathematical formula used by this calculator is: In-Hand = CTC - PF - Gratuity - Professional Tax - Income Tax. CTC includes all components: Basic (40% of CTC), HRA (50% of Basic), PF (12% of Basic, max ₹21,600/year), Gratuity (4.81% of Basic), and Special Allowance (remaining amount).
Key Benefits
- Understand salary structure
- Negotiate better
- Plan finances
- Compare offers
Frequently Asked Questions
What is the difference between CTC and in-hand salary in India?
CTC (Cost to Company) is the total annual expense an employer incurs on an employee, including basic salary, HRA, PF contribution, gratuity, insurance, and allowances. In-hand salary is what you actually receive after deducting employee PF (12% of basic), professional tax, and income tax (TDS). On a ₹10 lakh CTC, in-hand is typically ₹70,000–₹75,000 per month. Job offers should always be compared on in-hand salary, not CTC. Use the free Salary Calculator on AbacusHand to calculate your exact result instantly.
How is PF (Provident Fund) deducted from salary in India?
Both employee and employer contribute 12% of basic salary to EPF. The employee's 12% is deducted from your take-home salary. On a basic salary of ₹30,000/month, your monthly PF deduction is ₹3,600 and the employer also contributes ₹3,600 (3.67% to EPF, 8.33% to EPS). For basic salaries above ₹15,000, contribution is typically capped at ₹1,800/month unless the employer opts for higher. Use the free Salary Calculator on AbacusHand to calculate your exact result instantly.
What is the approximate take-home salary on a ₹10 lakh CTC?
On a ₹10 lakh CTC: Basic ≈ ₹4 lakh, HRA ≈ ₹2 lakh, Special Allowance ≈ ₹3.28 lakh, employee PF ≈ ₹21,600/year, Gratuity ≈ ₹19,231/year. After deducting PF and income tax (approximately ₹17,500 under the new tax regime), monthly in-hand is approximately ₹72,000–₹75,000. Actual take-home may vary based on city, tax regime, and company policy. Use the free Salary Calculator on AbacusHand to calculate your exact result instantly.
What is professional tax and in which Indian states is it charged?
Professional tax is a state-level tax levied on salaried employees, ranging from ₹200 to ₹2,500 per year. Maharashtra charges ₹2,500/year for salaries above ₹10,000/month. Karnataka charges ₹2,400/year. West Bengal charges up to ₹2,500/year depending on income slab. Delhi, Haryana, Rajasthan, and some northeastern states do not levy professional tax. It is deducted monthly from salary by your employer. Use the free Salary Calculator on AbacusHand to calculate your exact result instantly.
How is HRA (House Rent Allowance) structured in an Indian salary?
HRA is typically 40–50% of basic salary — 50% for metro cities (Mumbai, Delhi, Kolkata, Chennai) and 40% for non-metros. On a ₹10 lakh CTC with a basic salary of ₹4 lakh, HRA would be ₹2 lakh (metro) or ₹1.6 lakh (non-metro). If you pay rent, you can claim HRA exemption under Section 10(13A) of the Income Tax Act in the old tax regime, reducing your taxable income. Use the free Salary Calculator on AbacusHand to calculate your exact result instantly.