PocketCTC to In-Hand Salary Calculator
Convert your annual CTC into the actual monthly amount that hits your bank account. This calculator breaks down CTC into basic, HRA, special allowance, employer and employee PF, applies standard deduction, professional tax, HRA exemption (old regime) and 80C/80D deductions, then computes income tax under the FY 2024-25 new and old regimes to give you the monthly and annual take-home.
Visual breakdown
Annual salary breakup
| Component | Annual |
|---|---|
| Basic salary | — |
| HRA | — |
| Special allowance | — |
| Bonus / variable | — |
| Gross annual | — |
| Employer PF (in CTC) | — |
| Employee PF (deducted) | — |
Tax computation (selected regime)
| Item | Amount |
|---|---|
| Gross annual salary | — |
| Standard deduction | — |
| HRA exemption | — |
| Taxable income | — |
| Income tax (incl. 4% cess) | — |
Gross monthly (pre-tax): —. Tax computed using FY 2024-25 slabs with 87A rebate where applicable.
How in-hand salary is calculated
In-hand salary calculation has three layers. First, your CTC is split into earnings (basic, HRA, special allowance, bonus) and employer contributions (employer PF, gratuity). Second, gross salary is reduced by employee PF and professional tax. Third, income tax under your chosen regime is deducted to arrive at the net take-home.
Step-by-step
- Basic = CTC × basic% (typically 40-50%)
- HRA = Basic × HRA% (50% metro, 40% non-metro)
- Employer PF = Basic × PF% (12% default; this stays in CTC, doesn't reach you)
- Special allowance = CTC − Basic − HRA − Employer PF − Bonus
- Gross annual = Basic + HRA + Special + Bonus
- Deductions: Standard deduction (₹75,000 new / ₹50,000 old) + HRA exemption (old only) + 80C/80D (old only)
- Taxable income = Gross − Deductions
- Tax = slab-wise tax + 4% cess (87A rebate if ≤ ₹7L new / ≤ ₹5L old)
- Net annual = Gross − Employee PF − Professional tax − Tax
- Net monthly = Net annual ÷ 12
Worked example
₹12 lakh CTC, basic 40%, HRA 50%, PF 12%, new regime
- Basic (40%)
- ₹4,80,000
- HRA (50% of basic)
- ₹2,40,000
- Employer PF (12% of basic)
- ₹57,600
- Special allowance
- ₹4,22,400
- Gross annual
- ₹11,42,400
- Standard deduction
- ₹75,000
- Taxable income
- ₹10,67,400
- Tax + cess
- ₹62,514
- Monthly in-hand
- ~₹84,990
Same CTC under old regime (with ₹1L 80C, ₹25K 80D, ₹3L rent, metro)
- HRA exemption (least of 3)
- ₹2,40,000
- Total deductions
- ₹4,15,000
- Taxable income
- ₹7,27,400
- Tax + cess
- ₹60,299
- Monthly in-hand
- ~₹85,175
In this case the old regime wins by ~₹184/month — but only because the user has substantial 80C, 80D and HRA deductions. For most salaried Indians without these, the new regime is simpler and saves more.
Frequently Asked Questions
What is the difference between CTC and in-hand salary?
CTC (Cost to Company) is the total amount a company spends on an employee in a year. It includes everything — your take-home salary, employer PF contribution, employer ESI/gratuity provisioning, variable pay, joining bonus, ESOPs, and sometimes even training and meal allowances. CTC is a marketing number — it tells you what the company is spending, not what you'll receive.
In-hand (or take-home) salary is what actually lands in your bank account each month. It is gross salary minus employee PF, professional tax, income tax, and any other deductions (insurance premium, meal card recovery, etc.). For most Indian salaried employees, in-hand salary is roughly 65-75% of CTC. If your CTC is ₹12 lakh, expect an in-hand of ₹75,000-₹85,000 per month depending on the structure and your tax regime.
Which is better — the new tax regime or the old tax regime?
It depends entirely on how much you can legitimately claim as deductions under the old regime. The new regime (FY 2024-25) has lower slab rates but doesn't allow most exemptions — only the ₹75,000 standard deduction and 14% employer NPS. The old regime has higher slab rates but allows 80C (₹1.5L — PF, ELSS, LIC, home loan principal), 80D (health insurance), HRA exemption, home loan interest under Section 24, and several others.
A rough rule of thumb: if your total deductions (HRA + 80C + 80D + home loan interest + others) exceed ₹3.75-4 lakh per year, the old regime usually saves more tax. Below that, the new regime is better. The good news is that from FY 2024-25, salaried employees can switch between regimes every year — so you can compute both and pick the lower one each April.
How is HRA exemption calculated under the old regime?
HRA exemption under Section 10(13A) is the least of three values: (1) the actual HRA received from your employer, (2) rent paid minus 10% of your basic salary, or (3) 50% of basic salary if you live in a metro (Mumbai, Delhi, Kolkata, Chennai) or 40% of basic if you live in a non-metro. The exempt portion is not taxed; the rest of HRA is added to your taxable income.
You must actually live in a rented house and be paying rent to claim this — owning a house disqualifies you. You also need to submit rent receipts (and Form 12BB) to your employer, and if your rent exceeds ₹1 lakh per year, the landlord's PAN is mandatory. From FY 2024-25, employees can choose between the old and new regime every year — pick the old regime only if your HRA + 80C + 80D + home loan interest deductions exceed the new regime's lower slabs.
What is the standard deduction for FY 2024-25?
For FY 2024-25 (assessment year 2025-26), the standard deduction for salaried individuals is ₹75,000 under the new tax regime (raised from ₹50,000 in Budget 2024) and ₹50,000 under the old regime. This deduction is automatic — no bills or proofs required — and applies to all salaried taxpayers. It is deducted from your gross salary before computing taxable income.
The new regime also includes a 5% slab from ₹3-7 lakh, which combined with the ₹75,000 standard deduction means salaried individuals with taxable income up to ₹7.75 lakh effectively pay zero tax. The 87A rebate extends this benefit further — taxpayers with taxable income up to ₹7 lakh under the new regime pay no income tax at all.
Is employer PF contribution part of my CTC?
Yes — employer PF (EPF) is a cost the company incurs on your behalf, so it's included in CTC. The default PF rate is 12% of basic salary (capped at ₹1,800/month if basic exceeds ₹15,000 — the statutory wage ceiling). This 12% goes directly to your EPF account, not your salary account, but it's still considered part of your total compensation.
Some companies, especially in IT and consulting, pay PF on the actual basic (without the ₹15,000 cap) — this is called "PF on full basic" or "uncapped PF". Your payslip will show two PF lines: employer PF (in CTC, doesn't reach your bank) and employee PF (deducted from gross salary, also goes to your EPF). Both are visible in your EPF passbook and accrue with interest, currently 8.25% for FY 2024-25.