CTC to in-hand salary calculator

CTC (cost to company) is everything your employer spends on you in a year, including its own PF contribution and gratuity. In-hand salary is what reaches your bank account each month after your PF, professional tax and income tax are taken out. On a ₹12 lakh CTC in Bengaluru with PF and gratuity inside the CTC, about ₹85,388 a month reaches your account under the new regime.

Under the new regime, none if your taxable income is ₹12 lakh or less: the rebate under section 156 of the Income-tax Act, 2025 (up to ₹60,000) cancels the tax. A salaried person also gets the ₹75,000 standard deduction, so gross salary up to ₹12.75 lakh is tax-free. Just above ₹12 lakh of taxable income, marginal relief keeps the tax no higher than the income above ₹12 lakh.

No. Budget 2026 kept the rates the same. The new regime (now section 202 of the Income-tax Act, 2025) is nil up to ₹4 lakh, then 5%, 10%, 15%, 20% and 25% for each next ₹4 lakh, and 30% above ₹24 lakh. What changed is the law's numbering and words: the Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026, and "tax year" replaces "previous year" and "assessment year".

The new regime is better for most salaried people because its slabs are lower and its standard deduction is bigger. The old regime can win when you claim large deductions: a big HRA exemption for high rent in a costly city, the full ₹1.5 lakh under 80C, health insurance under 80D and home-loan interest. The calculator works out both from your numbers and shows which leaves you more.

Since 21 November 2025, if allowances make up more than half of your pay, the part above half counts as wages for PF and gratuity. Many employers have raised basic pay to 50% of pay. That raises your PF and gratuity, so your take-home pay can fall a little while your savings grow.

The EPF wage ceiling went up from ₹15,000 to ₹25,000 a month from 17 September 2026. PF is compulsory at 12% of wages up to the ceiling (₹3,000 a month); many employers pay 12% of the full wage instead. Pick the option your offer letter uses.

From 1 April 2026 the Income-tax Rules, 2026 give the 50%-of-basic HRA limit in Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. Everywhere else the limit is 40%. HRA exemption counts only in the old regime.

Only in the old regime, where it is deducted from salary before tax. In the new regime it still comes out of your pay but does not reduce your taxable income. States cap it at ₹2,500 a year, and Delhi, Haryana, Uttar Pradesh, Rajasthan and some others charge none.